The President’s charity has not acquired the necessary exemption from the government to collect funds since 2013, raising questions on the legality of the Malta Community Chest Fund’s fundraising events.
The MCCF requires a written exemption from the Social Dialogue Ministry to collect funds by law. Yet this was only given once since the change of government and that was for L-Istrina in 2013, the ministry confirmed.
When contacted, the President’s office said: “The MCCF has acted from a constitutionally informed position and is satisfied and confident that the actions taken are compliant with the law, as duly notified to the Voluntary Organisations Commissioner.”
When pressed on the fact that the question had not been answered, the President’s office sent the same reply. NGO Commissioner Kenneth Wain said, before the ministry replied to The Sunday Times of Malta, that he had not been informed whether such an exemption had been granted.
The charity also requires a police permit, but answers on whether this had been issued were not yet answered because the police media unit said one day was “short notice”.
Last April, the MCCF became a foundation with the declared aim of giving its operations more visibility and scrutiny. Yet, the charity’s last published audited accounts date back to 2011.
Recently, President Marie-Louise Coleiro Preca announced the names of 38 NGOs chosen to benefit from MCCF funds.
L-Istrina alone collected over €7m in just two years
She said this would be the last year unregistered organisations would be allowed to benefit from funding because “her office had worked to ensure the process is more accountable and transparent”. A quick run-through of the list showed that close to half the NGOs chosen to receive funding were not registered.
This was not in line with the law as no NGO could receive such funds unless they were registered with his office, Prof. Wain said.
The Voluntary Organisations Act was implemented in 2007 to guarantee transparency and accountability in non-governmental organisations, particularly those collecting or receiving government funds. This is not the first year this has happened and it is the first declaration showing an intention to abide by the law.
MCCF does not receive any government funds but organises various fundraising activities throughout the year ranging from the popular L-Istrina to Rockestra to bike rides, fun runs and social events. From the annual L-Istrina event alone, the charity collected over €7 million in just two years.
Paqpaqli għall-Istrina alone collected some €180,000 last year. The same event held last week ended in tragedy when a Porsche 918 Spyder crashed into the crowd of spectators leaving 28 people injured, some critically.