The Opposition said the government’s decision to use money raised through the IIP programme to purchase shares in Bank of Valletta raises a number of questions which need to be clarified by government.

In a statement issued by spokesman for finances Mario de Marco, the PN said that according to Legal Notice 2/2015, the funds collected from the IIP programme were to be used for twelve specific purposes. The twelve specified purposes range from helping stakeholders deliver social, employment and educational projects, to fostering initiatives that support better governance, and to initiatives for the improvement of health and care for the elderly. 

These twelve specific purposes do not allow for the purchase of shares by government. By using funds collected from the IIP for the purchase of shares in BOV, the government went against the provisions of the above mentioned Legal notice. The matter is further compounded by the fact that the government has a vested interest in BOV, it being a significant shareholder in BOV and appoints its chairman.

Government defended its decision by stating that in terms of the Legal Notice it is “obliged to undertake initiatives for the benefit of future generations”. The purpose of such clause however was to allow the fund to be used to support and finance projects that have long-term goals, the PN said. The purchasing of shares falls beyond the definition of “undertaking initiatives for the benefit of future generations”. Government however used this clause to award itself unfettered powers to spend the IIP money as it so wishes and then justify its actions by stating that it “benefits future generations”.

Government kept this course of action hidden from the public eye. No public announcement was made by Government or BOV, the PN said. Yet again it is thanks to the media that the taxpayer found out about government’s action.

The Opposition is calling on government to publish all the correspondence and documentation relevant to this expenditure including the cost benefit analysis that was done to ensure that this public money was spent in the best possible manner. If government fails to publish this documentation then the Opposition will call on the Auditor General to investigate this expenditure.