A court has been asked not to allow a company set up to hold fairs at Naxxar from using any funds received by its directors as representatives of exhibitors at the former International Fair of Malta and of the Trade Fairs Exhibitors Association.
Nancy Buhagiar (World Marketing Services Ltd), Maryu Josephine Musu and Paul Ruben Caruana (Sign It Ltd) asked the court to issue a warrant of prohibitory injunction against Anthony Galea, Paul Abela, John J. Camilleri, Darren De Domenico, George Demajo and Raphael E. Micallef who set up TFEA Ltd.
They said that the six had been representatives of the Trade Fairs Exhibitors Association and exhibitors at the preceding International Fair of Malta.
Recently the Malta Trade Fairs Corporation changed its statute so that in case of dissolution, its assets would be shared among its sponsoring bodies rather than go to charity as had been planned when it was set up.
And in the past months, the corporation distributed funds it received from the sale of shares it directly held in the Malta Fairs and Conventions Centre Ltd between the sponsoring bodies, the three individuals claimed.
They said that these bodies were seven and included the association and the exhibitors at the preceding fair of Malta.
These two entities received two sevenths of the money distributed, about €800,000, through the six people promoting the Naxxar fairs.
On December 3, this group set up TFEA Ltd with a social capital of €200 each with the aim of organising fairs in Malta.
They publicly confirmed that the society opted to rent private land where the international fair of Malta used to be held in the past and allegedly used some of the money they had received on behalf of the association and/or exhibitors.
The individuals claimed that if the funds were passed on to TFEA Ltd, they would not be returned as they would have been spent.
A big risk was being taken in the organisation of a fair at Naxxar on land which was not covered by any commercial permit and which fair was opposed by the Naxxar council and residents. The land could not even be used for fairs according to the relative local plan.
So if the funds were passed on to TFEA Ltd, they were in great danger of being lost, the three individuals claimed.