The European Commission has still not authorised the release of about €2 million that Malta was entitled to receive for this year’s educational programmes.
Despite lifting a year-long suspension of two programmes, the Commission said last July it was still not fully satisfied with certain aspects of the management of the programmes.
Although allowing the Maltese authorities to proceed with a fresh call, the EU Executive decided to block about 70 per cent of the funds due to Malta for this year until it is satisfied with the running of the programmes.
According to Brussels, blocking the funds will not make a difference to beneficiaries because Malta can still use finance still available from previous agreements.
Asked by Labour MEP Louis Grech for an update of the situation, European Education Commissioner Androulla Vassiliou said her services were analysing a new report sent by the Maltese authorities at the end of last month.
“A report was received from the Maltese authorities on September 30, 2011 and is currently being examined. Should this new report provide evidence that the remaining remedial actions have been implemented fully and to the required quality standards, the Commission will lift the payments suspension with immediate effect,” she told Mr Grech.
According to the commissioner, the problems that remained despite more than a year of meetings, correspondence and visists, include the treatment of final reports from beneficiaries, quality of controls on beneficiaries, recovery of funds from beneficiaries, treasury management, documentation of procedures and training of national agency staff.
Ms Vassiliou said the Commission provided guidance and support to the Maltese authorities on the remedial actions needed to address the matter and was following up their implementation closely.
The issue has been dragging since May 2010 when the Commission decided to suspend Malta’s participation following “persistent” mismanagement found at the European Union Programmes Agency (Eupa) and the national authority responsible for regulating the agency. Following the suspension and a government inquiry, three senior officials from the Education Department – including the permanent secretary – had resigned.
It is estimated that, this year, a total of 850 Maltese young people will benefit from the two programmes, including 200 Erasmus students.