The government’s internal inquiry on the Gaffarena affair cannot be published if the law regulating the investigative department is followed to the letter, Times of Malta can reveal.
In the wake of the growing controversy over the scandalous expropriation deal that saw Mark Gaffarena being compensated with cash and land for half a property in Valletta, the government tasked the Internal Audit and Investigations Department (IAID) to probe the matter.
There are instances when confidentiality can be breached
Prime Minister Joseph Muscat went on record saying that the conclusions of the inquiry would be made public as soon as it is concluded.
But despite Dr Muscat’s commitment of “full transparency” over the issue, the law effectively prevents him from publishing the investigation.
Even so, a spokesman for the Prime Minister yesterday insisted the inquiry would be published.
Articles 14 and 22 of the Internal Audit and Financial Investigations Act state that investigations are “strictly confidential” and shall not be disclosed to the public.
Ironically, just last week, the government used the same law to deny Times of Malta an IAID report on alleged mismanagement at the Institute of Tourism Studies.
Following the news that the ITS investigation by the IAID had been concluded, this newspaper asked Tourism Minister Edward Zammit Lewis for a copy of the report. The minister turned down the request because of “legal prohibition”.
Asked to explain, Dr Zammit Lewis said that the IAID law prohibited him from divulging any information as “the findings shall be treated as confidential and shall be solely used by the directorate for the purpose of carrying out an internal audit”.
The director general of the IAID, Kenneth Farrugia, confirmed that the law prevented his Department from publishing any information.
Despite the clear legal prohibition, the Office of the Prime Minister yesterday insisted that the report on the Gaffarena investigation would be published.
Stating that Dr Zammit Lewis was right in not publishing the IAID report on ITS, the Prime Minister’s spokesman said the Gaffarena case was of another nature, where a number of public policy issues were flagged. He confirmed the law “clearly precludes” IAID from publishing an internal investigation.
Asked whether the Prime Minister intended to change the law in order to publish the Gaffarena report, the spokesman said: “There are instances when confidentiality can be breached and even those are stipulated by law. Once the report is concluded, the IAID will send the report to the Principal Permanent Secretary. However, the Prime Minister’s disposition to publish the report was made in a political context and for the sake of ensuring full transparency.”
According to law, the work of the IAID is overseen by a board chaired by Mario Cutajar, the Cabinet secretary.
Apart from the IAID investigation, the National Audit Office, which responds to Parliament, is conducting an independent investigation requested by the Opposition. When concluded, the NAO report is tabled in Parliament.
What the IAID law states:
Article 14: The Director shall, as soon as may be, after concluding a financial investigation or an internal audit, transmit a report thereof to the Permanent Secretary under whose supervision the auditee falls. The Director may also transmit a copy of such report to the auditee.
Article 22: (1) All information furnished by an auditee during the course of any internal audit or financial investigation shall at all times be treated as confidential and shall be solely used by the Directorate for the purpose of carrying out the internal audit and, or financial investigation.
(2) The Director shall treat internal audit reports and reports of financial investigations as strictly confidential and shall, except for the purpose of any criminal investigation or prosecution, only disclose their contents to the Permanent Secretary and, if necessary, to the Board, or the Auditor General.
(3) Without prejudice to the rights of the Auditor General under any law, no information obtained in any way under this Act shall be disclosed except: (a) for the purpose of the financial investigation and the prosecution of a criminal offence; (b) to officers of the Directorate in the course of their duties under this Act; and (c) in matters which under this Act arise out of Malta’s international obligations, to the relevant foreign audit and control authorities.