Issue link: https://maltatoday.uberflip.com/i/1468033
3 maltatoday | WEDNESDAY • 18 MAY 2022 NEWS PN expected 'positive results for foreseeable future' at end of 2019 CONTINUED FROM PAGE 1 "We don't have the liquidity needed to lead a campaign for the European Parliament and lo- cal council elections in two years' time," Grech admitted. But in its statement for 2019, the party was moderately optimistic, declaring that its resources at the end of 31 December positioned the party to sustain its operations in 2020, with its administrative council saying it continued "to expect positive results for the foreseeable future." And despite concern on the impact of the pandemic, the PN administrative council optimis- tically said, "steps and initiatives taken to date are sufficient to safeguard the party's financial position and the wellbeing of its employees." How party keeps pumping mon- ey in media company But the PN's accounts confirm the burden of Media.Link on the party's finances. Party accounts in fact show a €326,132 surplus which was turned into a deficit after the deduction of an "impairment ex- pense" consisting of €928,258 on advanced amounts to "its con- trolled entities" – namely Media. Link and travel agency Eurotours. The accounts show that by the end of 2019 the party's contri- bution to Media.Link increased from €13.4 million in 2018 to €14.3 million in 2019. The accounts state that "in view of the fact that the controlled en- tity is loss making and that the investment in the controlled en- tity has been fully impaired, no further share of losses were being recognised by the party, beyond the actual contributions." In the accounts these contri- butions are treated as being an extension of the party's net in- vestments. The party declared using the equity method for its investments whereby the share of results are recognised in the income and expenditure ac- count "against the investment in said investment." Party repaying two major loans The party also paid €444,196 in repayment of bank loans while registering €485,300 in proceeds from borrowing. The accounts refer to two loans together amounting to €2.5 mil- lion, which the party has to re- pay. The first loan was obtained to restructure facilities previous- ly owned by a controlled entity, and has to be repaid by 2034 in monthly repayments of €16,500. A second loan "obtained to re- structure the operations of the party and its controlled entities" is repayable in monthly instal- ments of €10,000 and has to be repaid by 2025. The ċedoli scheme is listed as other borrowings amounting to €5.1 million, repayable in full at a rate of 4% interest at the expi- ration of a 10-year period com- mencing from the date of signing of each agreement. More salaries, less income from membership The accounts reveal that in- come from membership and subscriptions had declined from €112,658 in 2018 to €106,435 in 2019. The party also received €103,494 in funds from parlia- ment to cover "parliamentary research", €98,979 from rents on clubs and €175,000 in income from termination of club leases. The party only gained a measly € 428 from the sale of merchandise. The accounts show that the par- ty's salary bill had increased from €425,179 in 2018 to €465,469 in 2019. The party spent a total of €316,612 in its 2019 MEP elec- tions campaign. Party values property assets at €16 million The party declared €15.9 mil- lion in property and other fixed assets. The party's liabilities in- cluded €8.7 million in borrowing. The party's €9.8 in liabilities were offset by €17.6 million in to- tal assets. The party's properties were revalued "on an open mar- ket value" as at December 2019 which resulted in an increase of €1.5 million in the value of these properties over the previous year. The party declared a €52,360 in profits from property sales down from €133,499 in 2018. While the Labour Party still has to present its statement of accounts for 2019, Alternattiva Demokratika registered a €1,170 surplus while the defunct far- right Moviment Patrijotti Mal- tin registered a deficit of €2,564, down from a 2018 surplus of €7,302. The MPM's major expendi- ture in 2019 was a truck expense of €2,070. The party had spent €1,985 in travelling and accom- modation in 2018 and a further €817 in 2019. Norman Lowell's far-right Imperium Europa registered a €2,344 surplus in April 2020. PN leader Bernard Grech recently declared that the party is €32 million in debt PN's finances in 2019 at a glance Deficit registered €607,279 Property assets €15.9 million Total liabilities €9.8 million Contribution to Media.Link € 14.3 million Advance to Media.Link in 2019 €919,965 Salary bill €465,469 Borrowing from Cedoli €5.1 million Payments on loans €444,196