The severance package for Malta’s former ambassador to the EU, Richard Cachia Caruana, ran up to €239,000 in terminal benefits, Foreign Minister George Vella revealed in Parliament yesterday.
Opposition Leader Lawrence Gonzi defended the sums, saying people should be judged by the results they obtained
Aside from that golden handshake, Mr Cachia Caruana will continue to receive €5,900 every month for two years, bringing his total payoff to €380,600.
Mr Cachia Caruana, who negotiated the terms of Malta’s EU membership as well as two EU budget deals, was ousted by Parliament in June when then Nationalist MP Jeffrey Pullicino Orlando backed an Opposition motion of no confidence in him.
Asked what he thought of Dr Vella’s description of his golden handshake, as “scandalous”, Mr Cachia Caruana replied: “Well, he would say that, wouldn’t he?”
Meanwhile, Opposition Leader Lawrence Gonzi defended the sums, which included €35,000 for banked leave, saying people should be judged by the results they obtained.
In his reaction in Parliament yesterday, Dr Gonzi said that during his time in Brussels, Mr Cachia Caruana achieved very good results for Malta and only last January managed to secure €1.12 billion in EU funding after being asked to assist with the negotiations, despite having resigned following the parliamentary vote.
Dr Gonzi pointed out that ambassadors received transition allowances and termination benefits whenever their jobs were terminated, but quality should be measured by the results obtained.
Dr Vella revealed the conditions of Mr Cachia Caruana’s severance package during a debate on the Budget. Calculations made on the basis of his contract showed he used to be paid €400 per day.
The Foreign Minister argued that such terms were scandalous but unsurprising given that the former Government’s ministers had awarded themselves a weekly raise of €600, before backtracking following a public outcry.
He added that ministry officials had told him Mr Cachia Caruana’s contract terms were agreed following instructions from the then Office of the Prime Minister.
Mr Cachia Caruana’s severance package was made up of his annual €167,000 salary, a three-month global emolument of €36,000 and the banked leave, according to Dr Vella.
In his speech Dr Vella also revealed Labour MP Chris Fearne would be the new chairman of the parliamentary Foreign Affairs Committee.
Last July, Dr Gonzi had said Mr Cachia Caruana’s salary was €42,337, scale one of the civil service, plus a 10 per cent pay rise he was given in 2009 in “recognition” of his vast experience.
His salary translated to €143,140 due to the UN’s global emoluments formula, which has been used since 1984 by the Foreign Ministry for diplomats posted abroad. In other words, it was tweaked to Brussels’ cost of living.
Dr Gonzi had stressed that besides being Malta’s Permanent Representative to the EU, Mr Cachia Caruana also held another job: adviser to the Prime Minister on EU affairs.
In fact, he sat on Cabinet and was also eligible for the benefits given to ministers who lost their jobs to help them transition into the private sector.
He was succeeded by Marlene Bonnici as Malta’s permanent representative to the EU.