The government has still to agree with an insurance firm to cover part of the compensation paid to 11 victims of the ill-fated Paqpaqli charity car show who have already received €3.6 million from State coffers, according to the Finance Minister.
The Times of Malta had reported that the Malta Community Chest Fund Foundation had agreed to pay compensation to victims on condition that they dropped civil lawsuits against the President, her staff and volunteers involved in the 2015 event.
Both the Office of the President and the Office of the Prime Minster repeatedly refused to say how much was paid and by whom.
A spokesman for the President had insisted such information could not be given due to ongoing legal action regarding liability for the incident. This stance was maintained even after the civil suits were formally dropped. The President stressed however that none of the funds came from donations given to the CCF.
Negotiations are ongoing so that part of the money will be recouped
Pressed to say where the compensation money came from, the President’s spokesman had insisted that part of the sum was paid through insurance and the rest through a government subvention. It has now emerged in Parliament that all funds paid out so far came from taxpayers’ pockets.
“The government gave the Community Chest Fund €3.6 million so the victims could be compensated,” Finance Minister Edward Scicluna said in reply to a question tabled by Opposition MPs, Mario Galea and Godfrey Farrugia.
“Negotiations are ongoing so that part of this money will be recouped from insurance,” he added.
The insurer, Mapfre Middle Sea, was willing to pay a maximum of €1.8 million in damages, sources told Times of Malta.
However, volunteer organisers, who are also facing separate criminal charges, have yet not agreed to give their consent. They complained to this newspaper the Office of the President kept them in “complete darkness” over the negotiations and decided to pay €3.6 million out of taxpayers’ funds.
Originally, the Office of the President had refused to pay any compensation to the victims, insisting the Malta Community Chest Fund Foundation had nothing to do with the event, which, it was argued, was organised by “third parties”.
A total of 23 people were injured when a fast luxury car taking part in the charity activity veered off the track and crashed into spectators in October 2015.