The Auditor General is looking into the manner in which ministers awarded themselves a pay rise three years ago, according Labour whip Joe Mizzi.
It is understood that Anthony Mifsud, whose office has declined to comment on whether an inquiry is being conducted, decided to look into the issue after a ruling by Speaker Michael Frendo in January in response to claims made by the Labour whip.
Mr Mizzi had alleged there was a “whiff of misappropriation of public funds” by the entire Cabinet due to the anomalous way the rises were included in parliamentary votes.
In a ruling on March 7, Dr Frendo acknowledged Mr Mizzi’s “substantive” claims and said they required investigation. However, he said it was not the Speaker’s duty to ensure financial laws of the country were applied correctly.
Dr Frendo said this was the role of the Auditor General, who could either launch an inquiry on his own initiative or at the request of either the Finance Minister or three members of the Public Accounts Committee.
When contacted to establish whether this matter had been followed up, Mr Mizzi said he confirmed with the Auditor General that an inquiry had been launched.
The Times reported last week that neither the opposition leader nor the Speaker had received their increases, despite Cabinet deciding three years ago that they were entitled to a new pay package which included an increased basic salary, increased duty allowance and an MP’s honorarium.
It also emerged that Cabinet decided to increase ministers’ duty allowance by €6,000 (equivalent to 20 per cent of their salary).
Last Tuesday, the Labour Party tabled a motion in Parliament in what it described as a move to give MPs a chance to “disapprove of the insensitive, arbitrary and non-transparent behaviour of Cabinet”.
If the Auditor General finds that there was something irregular, illegal or unconstitutional in the way the rises were awarded, Cabinet members, who already in January decided to pay back some of the money they received, could be requested to refund more of the rise.
Alternatively, the Auditor General’s findings may force the government to give the opposition leader the money he is owed and which he has already promised to donate to charity.
The Prime Minister’s spokesman could not be contacted for comment last night.