A showdown is expected this week at the Pitkalija (vegetable and fruit market) in Ta’ Qali between the government and the private middlemen – known as pitkala – if a disagreement over a bank guarantee is not resolved by Tuesday.
According to a new legal notice published on New Year’s Eve, every pitkal will now have to provide a bank guarantee, equivalent to 10 per cent of his previous year’s turnover from the sale of agricultural produce, in order to continue with his business.
Most of the 16 pitkala are refusing to abide by this new requirement, and the authorities have given them until Tuesday to get in line or else risk losing their licences.
“We have not been consulted over this new imposition and we cannot understand why the government wants to drive us out,” one pitkal told this newspaper.
“We cannot afford to pay this bank guarantee. We have no business with the government and the majority of us pay all our dues to the farmers on time,” another pitkal said.
These are the rules and whoever by Tuesday does not have the bank guarantee risks losing their licence
Among the pitkala there are rumours that the government is using this new law to drive them out of the vegetable and fruit market so that the area they use can be privatised.
However, a spokesman for the government vehemently denied that any such plans were being considered and said that the bank guarantee was part of an ongoing reform at the pitkalija.
The decision to ask for a bank guarantee has been taken by the government following the move by APS Bank to stop its business at the vegetable and fruit market. According to the government, APS Bank used to issue the guarantee itself but, since this is no longer the case, the pitkala need to provide a financial guarantee to ensure that the farmers are eventually paid for their produce.
“Some farmers are owed hundreds of thousands and the government is not prepared to take the onus of such payments upon itself in case of default,” the government spokesman said.
“We can’t understand why the pitkala are making all this fuss as a proper bank guarantee is in their interest,” he said.
While confirming that some of the 16 pitkala have already presented the bank guarantee, the government insisted that its position would not change.
“These are the rules and whoever by Tuesday does not have the bank guarantee risks losing their licence,” the spokesman said.
Meanwhile last Friday, the newly formed Pitkala Association filed a judicial protest against Parliamentary Secretary Roderick Galdes, holding him responsible for any damages caused by the government’s actions.