Issue link: https://maltatoday.uberflip.com/i/290775
MiriaM Dalli MeMbers of the european Par- liament are required to make a declaration of financial interests and "not a declaration of financial income", according to Opposition leader simon busuttil. busuttil has been at the centre of a political controversy ever since the government revealed a consul- tancy firm – of which he was for- merly a director – received thou- sands in direct orders under the Nationalist administration. In total, around €1.1 million con- tracts had been awarded in five years: some of these were direct orders, others were following a call for offers and in other instances through a consortium. According to information tabled in parliament by various minis- tries, there were instances where it was not clear how contracts to europa research and Consultancy services Ltd had been awarded. The controversy has now shifted to busuttil's financial declaration as a former member of the europe- an Parliament. The Labour Party has kept up the ante, arguing that busuttil "has failed his first trans- parency test". "Facts and public documents show that erCs has made over a million euros from these contracts; busuttil says his income was less than the minimum wage. It now emerges that not even this mini- mum wage was declared," Labour said yesterday. The General Workers Union daily l-Orizzont this week reported that busuttil had not declared income received from erCs Ltd. The PN leader proceeded to file a libel suit against the newspaper. In a declaration of financial in- terests of MePs stamped 30 March 2012, busuttil declared his inter- est as partner in law firm Ganado sammut Advocates (up until 2010) and director of the Malta-eU in- formation centre (MIC) between 1999 and 2003. In this declaration, busuttil also declares the category of income (between €1,001 and €5,000 a month) related to these two posts. This declaration was made ac- cording to Article 4(2)(a) of the MePs' code of conduct that states that the MeP must declare the oc- cupation during the three-year pe- riod before he took office with the parliament and his membership during that period of any boards and other bodies established in law. The code of conduct also states that the MeP has to declare any regular remunerated activity taken alongside the exercise of his office, whether as an employee or as a self-employed person. The declaration of financial inter- ests must also stipulate member- ship of any boards or committees of any companies, non-government organisations, associations or oth- er bodies. While busuttil declares his in- volvement in erCs Ltd, he does not stipulate the category of income. "MePs are required to make a Declaration of Financial Interest and not a declaration of Financial Income. I duly submitted this dec- laration throughout my nine years as an MeP," busuttil told MaltaTo- day. He added that the PN had required its MePs to publish a declaration of financial transparency, contain- ing all record of funds received from the european Parliament in the course of their mandate, apart from their official salary. "This PN requirement was over and above the eP requirements for the submission of a declaration of financial interest," he said. eCrs Ltd was formed in 1995 and commenced trading activities in 1996 to carry out consultancy and research services. The com- pany was set up as a joint venture between Ganado Associates (now Ganado advocates) and empower Measure Create simplify Ltd. The directors at the time were Austin sammut, Peter Fenech and busuttil. Their first substantial turnover was in 1997, with a turnover of Lm9,675. In 1999, Joanna Drake joined that board of directors and turnover increased to Lm28,870. every year between 2001 and 2005, the company registered an operat- ing loss. In 2005, the company was registered as AUsAM Ltd and the board of directors included stefano Mallia (now PN MeP candidate) and Mariosa Vella Cardona. Drake resigned. In 2005, the company registered an increase in turnover but the board did not recommend payment of a dividend. In 2007, the company was once again registered as erCs Ltd and enjoyed a turnover boost of Lm189,890. Directors' remu- neration and bonus amounted to Lm25,074. In 2008, the company made a turnover of €281,608 and the di- rectors' remuneration and bonuses amounted to €46,299. between 2009 and 2011, directors' remuner- ation and bonuses ranged between €52,301 and €64,804. In 2012, erCs Ltd's operating profit decreased substantially from €46,763 to €863. In May 2013, busuttil and Mallia resigned from the company. According to a spokesperson for the PN, busuttil in 2009 became a non-executive director and in three years he made "around €18,000 as a shareholder". News maltatoday, Sunday, 6 april 2014 Consultancy firm row: Busuttil defends declaration of 'financial interests'