National Audit Office finds no evidence of wrongdoing by minister on Dingli Interpretation Centre

An investigation by the National Audit Office (NAO) has cleared Transport minister Ian Borg, back when he was the mayor of Dingli, of any wrongdoing in relation to allegations that the development of the Dingli Interpretation Centre was one he held an interest in and one that had involved the misuse of EU funds.

In a statement issued on Monday evening, the NAO said that in January 2016 it had received a letter alleging collusion and insider information involving governmental officials.

It noted however that it could not understand how plans to limit the Dingli Interpretation Centre to having a vending machine on site ended up with a permit for a fully-fledged restaurant.

The NAO said the allegations it received had noted that public property located at Tal-Veċċa, a Natura 2000 area, and which devolved to the Dingli Local Council (LC) to establish an Interpretation Centre, had been transformed into a catering establishment.

“The main allegations implied tha the Mayor of Dingli had a personal interest and that there was misuse of EU funds in this venture,” the NAO said, adding that the letter also referred to shortcomings by governmental institutions involved in the project.

“The investigation did not uncover or receive any evidence to support allegations that there was collussion or misuse of EU funds by public officials, including the Mayor of Dingli [Borg] during key stages of the evolvement of the Dingli Interpretation Centre,” the NAO said.

“This includes the processes relating to land devolution, the sub-leasing of the devolved land to third parties following a call for tenders, as well as the issuance of the planning permits and catering license.”

It added that the investigation did not elicit any evidence to corroborate allegations that Borg had a personal interest in the venture or that he was in receipt of a monthly amount of €2,000.

Furthermore, the NAO said it had not obtained any evidence to support allegations that the sub-lease registered its company with the MFSA three days before the issue of a call for tenders by the Dingli local council due to insider information. “The investigation established that there was ample information available within the public domain to enable the deduction that Dingli Local Council was to issue a call for tenders.”

Investigation reveals ‘number of administrative weaknesses’

The NAO said that on a general level, its investigation had revealed a number of administrative weaknesses including policy gaps, which it said prevailed at the former Government Property Division “in the processes adopted to devolve public land”.

It said the circumstances mainly related to the absence of provisions concerning sites’ use and sub-letting.

“This investigation also noted case specific administrative shortcomings. These included an absence of information by the Dingli Local Council on the commercial element related to the project at the tendering stage, post-facto authorisations, inadequate clauses within the sub-lease agreement and value for money concerns,” it said.

“The latter particularly related to the annual sub-lease and the devolution fee of Lm20 (€46.60) and Lm100 (€233) which are not reflective of market prices.”

Finally, the NAO said it could not comprehend the variance between the apparent intention to restrict the provision of food and drink on site to the use of vending machines, and the planning permit issued to allow the site to operate a fully-fledged restaurant as an ancillary facility to the Interpretation Centre.

The former MEPA Development Control Commission termed these circumstances an oversight, the NAO said.

“The NAO contends that such a state of affairs reflects weak work practices, including a broad lack of clarity as well as poor internal communications.”