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James Debono
The local council of Zebbug is in the worst financial state out of Malta’s 68 localities, with a debt of Lm283,000 and a deficit of Lm33,417.
St Julians is second, owing a total of Lm209,605 to its creditors. The locality is however owed even more money by its debtors. Outstanding payments to the council amount to an incredible Lm251,676.
The Mosta council registered the third largest debt, owing Lm195, 679 to various creditors.
The financial situation in this locality is so precarious that auditors wrote in their financial statements that the accounts had been prepared “on a going concern basis” and that the council’s future commitments was dependent on “the continued support of its creditors.”
With a debt of Lm152,950 Birzebbugia is next in line, but its includes the sum of Lm103,650, which was disputed by the council in court. The courts have subsequently ruled in favour of the local council and the possibility of the council having to pay this sum is remote.
Also in troubled waters is Cospicua with debts totalling Lm131,928. Although the council ended the year with a surplus, the auditors note that the council’s future commitments depend on the continued support of its creditors.
The council registering the greatest debt in Gozo was Nadur, which has seen its debts rise from just Lm3,219 to Lm67,459, between March 2004 and 2005.
Nadur’s surplus of Lm10,037 turn has also turned into a deficit of Lm8,233.
Only 10 local councils ended 2004 with a deficit, but 32 others ended the year with a worse balance than the previous year. Mgarr, with a deficit of Lm16,262 had the second largest deficit after Zebbug. Other councils ending the year with a deficit were Balzan, Iklin, Santa Venera, Ta Xbiex, Nadur, Kalkara and Mqabba.
jdebono@mediatoday.com.mt
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