Contracts allocating almost €450,000 in EU agricultural funds to three companies belonging to Magro Brothers in Gozo were signed three days before last year’s general election.
Two weeks ago, The Sunday Times of Malta revealed that nine contracts amounting to more than €1 million in EU agricultural funds were signed in the week before the election.
Almost half went to Magro Brothers, through three companies.
In addition to the total of €446,083 allocated through three contracts signed with Magro Brothers Ltd, Farm Fresh Ltd and Savina Creations Ltd in March last year, Magro Brothers had already been granted €119,914 from an earlier call for applications under the same funding stream.
Magro Brothers was also allocated another €9,874 in 2012 under other streams related to agriculture. In total, Magro Brothers was allocated €575,872 in EU agricultural funds.
John Magro, managing director of Magro Brothers, told The Sunday Times of Malta that being allocated the funds was no small feat.
The government of the time dragged its feet while we had started to make our commitment
The process involved a great deal of bureaucracy and required the company to make the investments before receiving any money.
“One of the disadvantages of EU funds is that there is a lot of bureaucracy, and this makes a lot of people give up. If I didn’t have a rather large set-up here, I would have given up too… we spent a long, long time waiting,” Mr Magro said.
He played down the fact that contracts were signed three days before the election.
“The government of the time dragged its feet while we had started making our commitments. The election had nothing to do with it, we would have received a letter months before confirming the funds,” Mr Magro said.
The three contracts signed on March 6, 2013, allocated €150,000 to Magro Brothers Ltd to develop a niche market for ready-to-serve Maltese soups, another €150,000 to Farm Fresh Ltd to develop a niche market for gourmet and drinking yoghurts using Maltese milk, and €146,083 to Savina Creations Ltd to create a niche market for gourmet wine vinegars from local vines.
Mr Magro said he has not yet received any money.
He explained that the investment had to be made by the company, and the funds were received only after checks confirmed all was in line with project commitments.
The Sunday Times of Malta had revealed that at least seven beneficiaries were twice allocated the maximum funding permitted under separate calls for applications.
Meanwhile, speaking to this newspaper, a number of farmers said they are crippled by debts incurred through bank loans required for them to invest in upgrading their livestock farms to comply with EU standards.
They said the loans taken were based on promises made to them that they would “get something”.
Former rural affairs minister George Pullicino recently told The Sunday Times of Malta he had no knowledge of the contracts signed before the election.
“I know there was a decision that no contracts should be signed that week, obviously because there was the election... so nobody would think we’re buying votes with contracts,” he said.