Labour environment spokesman Leo Brincat has called for a “serious investigation” into reports that a recyclable-waste collector inflated its figures to be eligible for an eco-contribution refund.
Mr Brincat said he had been informed that the alleged illegalities had been reported to the Malta Environment and Planning Authority and to the government’s waste management company WasteServ and they had known about them since the end of May.
“Here we are talking about the misuse of public funds, that essentially amounts to fraud... the government should declare whether it has looked into these reports and, if not, why,” he said during a press conference held at the Labour Party headquarters in Ħamrun.
Mr Brincat said he had known about the reports for a while and made reference to a story published in another newspaper on Sunday on the same subject. Mr Brincat did not mention waste recovery companies by name.
The newspaper article spoke of allegations that Green MT, the waste recovery scheme of the Chamber of Small and Medium Enterprises – GRTU, inflated its 2009 waste collection figures by collecting waste from local councils that had no contractual agreement with the scheme.
In a statement issued yesterday, Green MT insisted it had done nothing illegal. “We are 100 per cent in line,” Green MT director Joe Attard said.
He explained that in July 2009 Green MT took on the collection of the grey bags, containing recyclable waste, from 22 local councils. Green MT paid for the collection of that waste and could therefore legitimately include it as waste it collected in line with eco-contribution regulations.
He elaborated that the eco-contribution refund was granted to registered schemes that collected 70 per cent of its members’ packaging waste. According to the regulations, 60 per cent of that had to be collected from local councils.
Mr Brincat yesterday stressed that the allegations had not been proven so far but he wanted the assurance that the Prime Minister, who is responsible for Mepa, and Environment Minister George Pullicino, under whom WasteServ falls, were investigating the matter.
In a veiled reference to the GRTU’s director general Vince Farrugia, who had contested the MEP elections on the PN ticket, Mr Brincat said there was the general impression that the government was favouring one of the two main waste recovery companies. He said he hoped political links did not have an influence.
This preferential treatment, he said, was evident when the government allowed Green MT to operate before it was officially licensed. He added that he had also been informed that eco-contribution refunds dating to 2009 were still being processed.
A Mepa spokesman said the authority had received the 2009 audited reports from the two main companies operating waste recovery schemes – GreenPak and Green MT. Mepa had evaluated the reports and was waiting for clarifications it had requested.
EU waste packaging regulations make Maltese traders responsible for setting up systems for the collection and recycling of packaging waste generated through their trade. They can either set up their own take-back system or join a scheme to ensure legal compliance.
The eco-contribution law, enacted in September 2004, ensures better disposal or recycling of waste. Companies participating in waste recovery schemes may become eligible for a refund paid on recovered items if a quota is reached. Refund regulations came into force in July 2009.
The Times contacted the Environment Ministry for a reaction but did not receive replies by the time of writing. Mr Farrugia could not be reached.