Fantasy Tours customers have stepped up their action to recoup their losses by demanding compensation from the government, accusing it of failing to transpose an EU directive protecting their rights.

As they accused the government of “negligence”, the incensed clients said the State had failed to protect their rights and imposed a two-week ultimatum to pay them compensation.

They are claiming the government was ultimately responsible for their losses since it had not properly transposed a European directive that would have otherwise protected them.

The once-popular travel agency left several clients fuming after it closed shop despite taking deposits for upcoming holidays.

In a judicial protest, filed on their behalf by lawyers Antoine Grima and Keith Bonnici, from the Consumers’ Association, the 11 would-be travellers argued that according to an EU directive on package travel, travel operators were meant to set up an insolvency fund to reimburse customers in the eventuality that it could not live up to its commitments.

They argued that the directive was introduced and added to the Malta Travel and Tourism Services Act. But the government failed to implement it and the insolvency fund had never been set up. Last week, the Consumers’ Association organised a meeting for customers, advising them to write an official letter to the government demanding compensation.

The association had also warned that if the government failed to meet its demand, it would file a judicial protest, which was filed yesterday.

In its protest, the association said that the European Court of Justice had already delivered a number of judgments against other EU member states for failing to implement this directive.

It warned that if the directive was not implemented in full, it would file a complaint with the European Commission for action to be taken against Malta.

The insolvency fund which could have been used to pay those who had their paid-up holidays cancelled by Fantasy Tours was enacted in 1999. However, the subsections related to the setting up of this fund were never brought into force.

The fund, which tourism operators were meant to contribute towards, would have compensated any traveller, licensed tourism operation or tourist for any debt arising from the insolvency of any licensed tourism operator.

Fantasy Tours director Karl Azzopardi was recently indicted over charges of misappropriation of more than €400,000 in funds it received from clients. He is denying the charges and the case against him is still pending.