Alternattiva Demokratika warned today that two instances of government-to government transactions revealed this week could be in breach of state aid rules.

Party chairman Arnold Cassola, said that by selling the Petroleum Division from state-owned Enemalta to the government-owned Petromal Company Ltd and Enemed Company Ltd, and by buying the Selmun Palace Hotel from Air Malta, the Maltese government was endangering the stability of Malta's finances.

"There is a great risk that these deals may be declared as hidden state aid by the European Commission."

Moreover, he said, the government had to explain why it had taken up a bank loan for the transfer of the Petroleum Division assets and also give a justification for this operation.

"The government cannot play these dangerous financial games with people's taxes, putting at risk the stability of our financial basis. What the government needs is not transferring sums of money from one government entity to another one but encouraging investment and influx of new money from external sources."

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