The Ministry of Finance said today that the Auditor-General's report on the Good Causes Fund confirmed its concerns about significant over-spending and rampant lack of good governance of the fund.

The NAO’s report concluded that the commitments entered into by the previous administration will mean that new Good Causes Fund applications for grants will not be able to be financed before the end of 2014, the ministry observed.

“The report’s findings confirm the Ministry’s fears that the previous administration hived off over €3 million worth of Good Causes Fund in a pre-election spree,” said Finance Minister Edward Scicluna.

“It is shocking how the previous administration felt comfortable not only entering into financing commitments which would extend into the following administration and therefore beyond their political mandate, but also went as far as to over-commit the entirety of the Fund for the subsequent two years,” Prof. Scicluna added.

The report was commissioned by Prof Scicluna on the basis of concerns regarding how the fund was previously managed - particularly the manner in which commitments were entered into.

The report found, among other shortcomings, that the Good Causes Fund Committee was bypassed in several instances, with letters of endorsement being issued by the minister without the requests for grants being first evaluated by the Committee, the ministry said.

"The Ministry acknowledges the various recommendations put forward by NAO directed at addressing the shortcomings identified, and will be considering them with a view to ensure that the administration of the Good Causes Fund adheres to the principles of good governance."

The Report may be accessed through this link to the NAO website, or by visiting www.nao.gov.mt