PN made €3.5 million from Cedoli scheme • Debt surpasses €8 million

The Nationalist Party’s initiative to seek financing from small loans of €10,000 on an interest rate of 4% has resulted €3,527,100 in borrowings from third parties.

The figure was confirmed in the financial accounts presented by the party to the Electoral commission, which have now been published online.

For the year ending 31 December 2016, the PN had a total debt of €8,421,105, with the loans split as following: two bank loans of €415,210 and €2,894,005 respectively and borrowing from other related parties of €2 million. The borrowing from third parties – referring to the scheme popularly known as ‘cedoli’ – reached €3,527,100.

The money loaned under the scheme is repayable in full at the expiration of a ten-year period commencing from the date of signing of the loan agreement.

The deficit for the year 2016 amounted €1,639,557 compared to the 2015 deficit, which stood at €2,497,805.

During 2016, the PN made €64,722 through membership and subscriptions – compared to the €75,942 in 2015 – whilst donations reached €679,319.

The party raised just €190,867 through fundraising activities with expenses reaching €81,002.

In 2016, the party spent €351,694 in staff costs, €79,798 more than the previous year.

Administration costs reached €204,244 – €84,600 more than that spent in 2015.

Reacting to their political rival’s accounts, the Labour Party accused the “PN clique of giving itself an unprecedented raise whilst sacking workers”.

It also pointed out that the accounts were submitted to the Electoral Commission two months late, and only after the general election had passed.

The PL added that the financial accounts belied outgoing PN leader Simon Busuttil: “Whilst he said that the PN was making profit, the truth shows otherwise.”

On its part, the PN accused the PL of resorting to lies, adding that the PL has not declared how much its electoral campaign cost. The PN has said that it spent €1.3 million on its electoral campaign.

The PN reminded that it had launched a 15-year restructuring plan in 2014 to turn around its finances.