Apart from any developments there may be in its continued investigation of former European commissioner John Dalli, OLAF, the anti-fraud investigative arm of the European Commission, is also reported to be investigating a case in Gozo.

Asked specifically about the case by this paper, a spokesman for OLAF would neither confirm nor deny the claim.

It would seem, however, that officials from OLAF have been to Gozo to interview people who may be relevant to its investigation.

At the centre of these investigations, according to sources in Gozo, is the Gozo Action Group and its EU-funded LEADER (Liaison Entre Actions de Développement de l'Économie Rurale) programme.

There are three local action groups in Malta – one in Gozo, one for the north of Malta and one for the south. They focus on rural communities and seek to address the social, economic and environmental issues of the area.

In Gozo, as can be seen from the website (www.leadergozo.eu), the Gozo Action Group was chaired by Dr Joseph Grech, at least up to some time ago. Dr Grech has often surfaced in the news – first as chairman of Gozo Channel under the PN administration, then when he was removed after ordering a ferry back to port to take him aboard. He was later reported to have applied to be CEO at Gozo Channel and was not chosen.

Following the change of government, he was widely reported as having been taken on as a consultant with Gozo Channel and was said to be helping the new chairman.

It is not clear whether Dr Grech is still heading the Gozo Action Group and calls to Dr Grech’s office proved fruitless. Dr Grech however was not present at a media event held at Ghaxaq at which Parliamentary Secretary for Agriculture Roderick Galdes unveiled a number of new initiatives for the three action groups.

Reports from Gozo suggest that the OLAF investigation was quite specific. It centred on funds provided to an NGO run by the father of a GAG official, about the validity of quotes and invoices funded by the programme. After it was established, sources said that some of the quotes and subsequent invoices were artificially inflated and that some of the administration costs claimed under the fund were siphoned off to pay for non-related offices.