A director of the Malta Sports Council was paid €18,000 on the eve of the general election for a service that was only authorised a month earlier.
The payment, four days before the election, was highlighted in the National Audit Office’s annual report on public finances.
The incident caught the Auditor General’s eye because the director had since September 2011 served as acting facility manager at Tal-Qroqq Sports Complex but the job was only approved in February 2013.
“This was only approved at the end of his [the director’s] tenure, by a letter dated February 18, 2013 signed by the then Parliamentary Secretary for Youth and Sport,” the Auditor General said.
The parliamentary secretary for sports at the time was Clyde Puli. As is customary in NAO reports, the director is unnamed. Payment of the lump sum was made on March 4.
The remuneration works out at €1,000 for each of the 18 months the director served in the acting role.
Criticising the way things were handled, the Auditor said commitments should not be entered into unless the appropriate authorisation had been obtained.
“Adherence to public procurement regulations is paramount in ensuring that accountability and transparency prevail,” the NAO said. The reference formed part of a wider analysis of the sports council’s financial administration during 2013.
The Auditor found that substantial payments for services rendered to the council were not adequately substantiated with the necessary supporting documents. Procurement practices were also deemed to be inadequate.
The Auditor also noted monitoring weaknesses for money transferred to sports organisations as assistance for particular projects.
In one case involving a boċċi club, no tax invoice was presented to cover the amount of €19,183 for renovation works at the club. The sports council transferred the money to the boċċi club on the strength of a certified bill of quantity.
In its reaction to the Auditor’s findings, management did not comment on the retrospective approval of the director’s remuneration.
However, the management agreed that procurement of a substantial value or covering a long duration was to be covered by formal agreements and measures would be taken to strengthen control mechanisms.
The sports council also said it had since capped financial assistance to sports organisations at a maximum of €10,000. Measures would also be taken to ensure payment is not reimbursed unless an invoice and a certified bill of quantity are presented.