Government broke rules to transfer public service employees to Michelle Muscat's NGOs

Updated with NGO reaction 

The Commissioner for Standards in Public Life has found that NGOs headed by Michelle Muscat received preferential treatment when public service employees were seconded to the organisations. 

The investigation was initiated after a complaint filed by Arnold Cassola following an anonymous letter alleging that public employees were acting as private drivers for Michelle Muscat. The letter claimed these employees remained as her drivers even after Joseph Muscat resigned as Prime Minister in 2020.

While the Commissioner established that preferential treatment occurred, he found no evidence of personal intervention or ethical breaches by Prime Minister Robert Abela. Abela "absolutely and categorically" denied any involvement in the assignments.

According to the standards czar, the necessary agreements needed to second public employees to the Marigold Foundation and National Alliance for Rare Diseases were missing for years. 

In the case of the Marigold Foundation, the agreement was signed 22 months late, and for the National Alliance, it was nearly three years overdue.

Government policy mandates that public officers assigned to NGOs cannot be paid more than the maximum of Salary Scale 6. However, the report found that one employee, Natasha Deguara, was approved to receive her full Scale 5 salary.

Evidence showed that employees officially assigned to one NGO were actually performing duties for the other.

The investigation found instances where public service employees were removed from their post to the NGOs in an urgent manner. In one instance, an employee was released from the VAT department despite the Commissioner for Revenue’s objection that his department was already understaffed.

To make matters worse the People and Standards Division admitted it does not verify the actual work done by seconded employees, relying solely on justifications provided by the NGOs.

In a statement, Cassola’s Momentum noted that the report “clearly identifies irregular practices, weak oversight, and preferential administrative treatment in the allocation of public employees to two organisations closely associated with Michelle Muscat.”

Marigold Foundation reacts

The Marigold Foundation said the Standards Commissioner’s report found no wrongdoing by either the Foundation or the National Alliance for Rare Diseases Support Malta, highlighting their work in bridging service gaps through patient support programmes, public initiatives and national awareness efforts. The Foundation clarified that it is the founding organisation of the Alliance, describing their coordinated use of resources as central to the Alliance’s mission to support and empower the rare disease sector. It added that both NGOs entered into formal agreements whenever requested, stressing that the drafting and approval of such agreements fall under the responsibility of the relevant government department.

While expressing respect for the institutional process, the Foundation said it regretted that investigations triggered by anonymous letters place unnecessary pressure on employees and volunteers serving vulnerable patients and families. It also noted that staff have faced significant scrutiny due to their association with NGOs founded by Michelle Muscat, but insisted both organisations remained committed to integrity, good governance and collaboration with public authorities. As Rare Diseases Malta marks its 10th anniversary, the Foundation said its work continues to address gaps not catered for by the State and to make a tangible impact on the rare disease community.