Doubts on misappropriation of funds related to pony races were “justified” but no evidence of abuse was found, an inquiry into the operations of the Marsa Racing Club has concluded.
The report stated that the club created an environment where risks of misappropriation of income from pony races were high “although the board of inquiry has no evidence and cannot conclude that any funds were misappropriated”.
It made a set of recommendations to improve operations.
The inquiry was ordered in the wake of a series of allegations by a former photographer at the club, Alex Azzopardi who posted remarks against council members on the social media that were then reported by L-Orizzont newspaper. Much of what he said later proved to be untrue.
It was the chairman’s drive which succeeded in instilling discipline throughout the club
His services at the racing track were terminated in February after the club said he was in breach of the agreement. Mr Azzopardi also owed the club about €3,000 in arrears for the concession he was granted.
When Times of Malta approached club chairman Matthew Brincat he had not yet been given a copy of the report, which was tabled in Parliament on Wednesday, but said meetings with government representatives had been held on the outcome.
“I was informed by the government that the report is a certificate of integrity in terms of the chairman and the council. The official statement given to the media also said the inquiry board found no irregularities, although the government will be addressing certain recommendations made and providing assistance for this to be achieved,” Dr Brincat said. He said that, to ensure that no doubts remained on the club’s operations, he and other council members had tendered their resignation.
“I did not want to remain in that position just because the report did not find fault with my work. I would only stay if I enjoy the government’s trust,” he said.
While the positions are yet to be confirmed, Dr Brincat said he was asked to continue running the club based on his good track record.
The report substantiates his statement, noting “it was the chairman’s drive which succeeded in instilling discipline throughout the club”.
The organisation of pony races is the main focus of the inquiry. The findings show that just over eight per cent of payments made for the registration of ponies over the past five years were covered by a receipt.
The inquiry states that the club accountant as well as the marketing and finance director should carry responsibility for inadequate controls.
The organisation of pony races was largely unregulated until the club took over their management a few years ago. It did this with the support of Joseph Zerafa, known as Il-Prince.
Mr Zerafa is well known on the track. He is praised by racing enthusiasts for managing a previously unregulated activity and he was in fact nominated by the present government as a council member.
In order to monitor registrations, the council set up a dedicated bank account. The earnings could be traced by reconciling the fees for the number of horses on the track in each race with the amount of money deposited into the bank account.
When the club was asked to present proof of an estimated amount of earnings, the council submitted bank documents showing the earnings were in fact higher and could be traced.
The club has its accounts audited and they have even been tabled in Parliament over the years. They show that, since 2008, the club succeeded in eliminating losses running into thousands of euros and is now a profit-making venture.