Nine contracts amounting to more than €1 million in EU agricultural funds were signed in the week before the last general election, The Sunday Times of Malta has learnt.

The contracts guaranteed the allocation of funds, most of which amounted to €150,000: the maximum allowed under funding stream Measure 123 that aims to “add value to agricultural products”.

The local paying agency for these funds would not confirm whether any other funds were allocated under other agricultural funding streams that make up the European Commission’s Rural Development Programme for Malta 2007 to 2013.

Nor would it confirm the total amount allocated to the nine contracts signed under Measure 123 in the days before the election.

Former rural affairs minister George Pullicino said he had no knowledge of the contracts signed.

“I didn’t go into these details. But I know there was a decision that no contracts should be signed that week, obviously because of the election... so nobody would think we’re trying buy votes by awarding contracts,” he said.

Most of the nine contracts signed were with established names in the agricultural sector.

Magro Brothers received €300,000 by getting full funding under two companies: Magro Brothers (Foods) Ltd and Savina Creations Ltd. The same company had already been granted another €150,000 from an earlier call under the same measure.

In the week before the election, Emmanuel Delicata Winemaker Ltd also received maximum funding of €150,000 – the second time the same company was awarded maximum funding under the same measure.

The Sunday Times of Malta had revealed that at least seven beneficiaries were twice allocated the maximum funding permitted under separate calls for applications.

Meanwhile, some farmers are crippled by debts incurred through bank loans required for them to upgrade their livestock farms to comply with EU standards.

Several farmers who spoke to The Sunday Times of Malta said the loans were taken based on commitments made to them that they would “get something”.

Families are being torn apart by the pressure, many unsure of what their future will bring as they struggle to pay back the interest on the loans.

Last week, this newspaper also revealed that one of the contracts signed four days before the election allocated €150,000 to Stephen Galea for a winery in Bidnija even though he did not have the full permit to initiate the project.

Mr Galea committed last week to returning the funds since the planning authority refused to grant him the full permit required for the project. The paying agency confirmed that Mr Galea cancelled his contract last Wednesday.

Following The Sunday Times of Malta’s revelations on the allocation of agricultural funds under the Rural Development Programme 2007 to 2013, the agency has been asked to compile a report for the European Commission’s Internal Audit and Investigation Department.

In 2010 EU auditors said the agency was not up to standard.

It found insufficient audit trails, miscalculations of aid eligible to farmers and payments made before anomalies were solved.

Allocated funding contracts

cmuscat@timesofmalta.com