Issue link: https://maltatoday.uberflip.com/i/1190498
MATTHEW VELLA AN audit of Malta's European Capital of Culture celebra- tions in 2018 have revealed weak internal controls over the spending of its €11 mil- lion-plus budget. The National Audit Of- fice said V18's weak internal controls had revealed "a lack of accountability" with pub- lic procurement regulations not having been followed throughout the year of Val- letta's crowning as the capital of culture. From a sample of €2.28 mil- lion in transactions, it tran- spired that the V18 Foun- dation had neither issued a departmental call for tenders nor obtained direct order ap- provals from the finance min- istry. The nature of these services essentially included the pro- vision of lighting and sound, hire of crane, barge and gen- erators, as well as catering services. Furthermore, no informa- tion was available regarding the procurement of services, namely advertising, insur- ance, as well as project plan- ning and design, costing €144,430, also included in the audit sample. The Foundation claimed that the services were procured by the former executive director and that it was not in posses- sion of supporting documen- tation relating to the respec- tive method of procurement. "Due to this lack of audit trail, the NAO could not establish whether the pertinent regula- tions were followed," the of- fice said. Another sample of €571,000 in service contracts were not covered by agreements be- tween V18 and contractors, or supported by tenders or quotations. "It was unclear how, in the circumstances, the amounts invoiced by the suppliers could have possibly been verified for accuracy be- fore processed for payment." Additionally there was a lack of fiscal documentation, and an absence of publication of contracts awarded. For ex- ample, by mid-March 2019, when the audit was in pro- gress, no evidence was made available to the NAO con- firming that contracts and the DOs awarded during 2018 were duly published in the government gazette as stipu- lated by rules. In one case, V18 entered into a commitment with an artist to produce 13 artistic sculptures for the project en- titled 'Hekk Jgħid il-Malti'. However, no contract was in place at the time. To address this, the Foundation execu- tive director Jason Micallef signed an €80,830 agreement with the service provider for the sculptures. But approval for this direct order was not sought from the finance min- istry. "Correspondence dated 5 March 2018 indicated that approval from the Permanent Secretary had not been ob- tained before the service pro- vider was engaged." And despite the agreement stipulating that 85% of the cash would be paid following the delivery of the artwork, and the remaining 15% af- ter the artwork was disman- tled, "the artist invoiced the Foundation the full amount of €80,830 in March 2018, and the invoice was settled a month later." The artistic installations were to remain exhibited until 31 December 2018. The Foundation claims the payment "was a genuine mis- take due to pressures of work at a time when the only full- timer within the accounts unit had just left." Another observation from the NAO came on the 'Pag- eant of the Seas 2018', where a €52,000 contract for the sup- ply of generators was issued before the endorsement of the agreement. The V18 foundation said it "appreciates" the NAO's ob- servation that spending above €10,000 had to be covered by departmental tenders, but claimed that the spending was being carried out "whilst an intense, highly demanding, artistic programme was be- ing implemented by the same Foundation which at last count had 419 events just in 2018." The V18 Foundation has since been replaced by the Valletta Cultural Agency (VCA). "All necessary policies and frameworks to make sure that the public procurement rules are respected to the letter are now being created for the VCA to achieve optimal in- ternal controls over expendi- ture from the very start," the agency said. "One needs to appreciate that such oversights may oc- cur when working within a flexible and very tense and fluctuating environment such as the one the Foundation had to operate in. The Foundation did, however, take the neces- sary care in certifying all costs prior to making any payments. The VCA commits itself not to repeat such oversights so that any warranted measures are taken to regulate the rela- tionship between the Agency and service providers." 10 maltatoday | SUNDAY • 8 DECEMBER 2019 NEWS EOI - Malta AgriFair 2020 - MFCC The Strategic Communications Unit within the Ministry for the Environment, Sustainable Development and Climate Change would like to invite interested businesses, cooperatives, entities and individuals involved in the agriculture and fisheries sectors to submit an expression of interest, for participation as exhibitors during the Malta AgriFair 2020. The Fair will be held at the Malta Fairs and Conventions Centre (MFCC) in Ta' Qali from the 24 th to the 26 th of April 2020. Interested exhibitors are to submit their proposal by not later than Thursday the 19 th of December 2019 on the following e-mail address: agrifair.mesdc@gov.mt. The Malta AgriFair 2020 aims to provide a platform for local agricultural stakeholders, while informing the public about the developments, modern technologies, products and services available in the agriculture and fisheries sectors. The main theme of the Fair will be the Farm-to-Fork concept. This will be projected in the most innovative manner, through three main sections dedicated to crop & land management, livestock & animal husbandry and fisheries & aquaculture respectively. For more information, interested exhibitors are invited to download the Exhibitor's Information Booklet and the Expression of Interest Form from the following link: https://msdec.gov.mt/en/esdw/Pages/Agrifair/agrifairExhibitors or to call on (+356) 2292 6209. Weak controls on Valletta 2018 spending: NAO The NAO found irregularities in spending on various V18 events, among them the Pageant Of The Seas (above) and the Hekk Jghid Il-Malti sculptures