Mambra Electronics owner Joseph Pavia said yesterday that despite all his efforts over these past years, business had suffered greatly, to the extent that the company went bankrupt.

In addition, a large sum of money was stolen in a hold-up, an incident that further aggravated the situation, Mr Pavia said in a reply filed in court following an application for a garnishee order made by the VAT Commissioner last week. The VAT department issued a garnishee order on August 21 against the company claiming it is owed €308,809.

Mr Pavia said that the money due to the VAT department also included interest and fines running into substantial amounts. These had accumulated because he was not in a position to pay up in a timely manner as he had found himself in a position whereby he had to devise ways in order to pay creditors and thus save the business. This meant that interest continued to rise. Mr Pavia agreed that the only assets belonging to him where the premises indicated in the garnishee order. However, such assets were adequate to cover all his debts.

He said he was willing to have talks with the VAT department as he was willing to hand over all his property to his creditors. While such talks took place, Mr Pavia said he would make suitable guarantees regarding his property in favour of the VAT department, meaning there would no longer be any need for the garnishee order to remain standing.

The reply was signed by lawyer José A. Herrera.

Mambra's shop in Luqa closed down for a long shutdown in July but never re-opened on August 5 as it was meant to do. Mr Pavia's sister, who worked at the shop, informed employees not to return to work a day before the shutdown was to end. Mr Pavia is thought to have left the island and his family says his whereabouts are unknown.

Official documents deposited with the Registry of Companies show that on June 25 Mambra's auditor resigned and stopped representing the company.