Finance Minister Tonio Fenech and Commissioner for Voluntary Organisations Kenneth Wain are at loggerheads over which organisations should receive benefits from the Good Causes Fund, which last year distributed €1.2 million.
Prof. Wain, the regulator of the voluntary sector, has been highly critical of benefits given to charities that are not registered under the Voluntary Organisations Act of 2007.
He previously criticised the Malta Community Chest Fund (MCCF) for not enrolling as a voluntary organisation before the Boxing Day charity event L-Istrina. He also said free air time on State TV should not have been given to Dar tal-Providenza when it raised €617,585 on New Year's Day.
Enrolling as an NGO is not compulsory but it makes registered organisations eligible for State benefits and grants. Both the MCCF and the Church have so far opted not to register. Both organisations were also direct beneficiaries of the Good Causes Fund, which is administered by the Finance Ministry.
Prof. Wain told The Sunday Times that all voluntary, non-profit, autonomous organisations receiving donations, whether financial or in kind, should be registered. The Good Causes Fund is simply one of several funds administered by different ministries, such as the Gozo Ministry and the Office of the Prime Minister, which must abide by the provisions of the Act.
He said the Voluntary Organisations Act applied to all kinds of benefits, sponsorship or service contracts.
The Good Causes Fund is administered by the Finance Ministry, which said contributions from this fund had no relation to the Voluntary Organisations Act, even though voluntary organisations were beneficiaries.
The ministry said the fund, which generates its income through a percentage contributed from the amount of tax payable from gaming activity and unclaimed prizes, was regulated by another law - the Lotteries and Other Games Act.
This law, the ministry said, came into force before the Voluntary Organisations Act and empowered it to grant credit from the Good Causes Fund upon receipt of a request, and following consultation with its advisory body to a person, organisation or entity which pursues objectives of a religious, philanthropic, cultural, sports, educational, social or civic nature or in support of deserving causes.
"Sub Article 7 empowers the minister to grant a benefit 'without any further appropriation other than this Act'. Consequently, there is no further justification required," a spokesman for the ministry said.
Over half the funds distributed under the Good Causes Fund were allocated to unregistered voluntary organisations. Charities not enrolled with the Commission for Voluntary Organisations were even given money to raise funds for other unregistered organisations.
CAM Productions received €10,000 for the broadcasting marathon Oħloq Tbissima that raised over €200,000, which it partly distributed to St Joseph Home - an unregistered charity.
The MCCF received €25,000 to organise the Rockestra Concert, and also benefited from another €6,000 given to the St Joseph Band Club in Għaxaq to organise a musical concert on the charity's behalf.
Another unregistered organisation, Lidea Events, received €20,000 to organise the Malta Rock Festival in aid of Dar il-Providenza, MMDNA and the Tiny Infants Support Group. None of these organisations are registered.
Journey Movement, an organisation not registered with the Commissioner, received €10,000 to organise a concert in aid of the Eden Foundation.
The Finance Ministry also donated €138,000 to parish churches to act as 'Euro Centres for Euro Changeover Purposes'.
The bulk of the funds went to sports organisations, which received close to €318,000. Organisations working to preserve cultural heritage and organise events received a total of almost €298,500. Over €186,600 went to organisations of a social, educational or civic nature. The Church and affiliated organisations received over €170,000 - almost all of these funds went to beneficiaries not registered with the Commissioner.