Despite the same advice given to the Linen Service Cooperative (Kols) in an audit in 2003, it seems that nothing much has changed as the same issues cropped up again in the 2014 Audit by the National Audit Office.

The Public Accounts Committee this evening discussed what the National Auditor said as regards Kols.

Financial consultant, John Abela, speaking for the Ministry for Health offered the idea of keeping an inventory to make sure that government property is actually there and in working order. A lack of financial statements made it look to the Public Accounts Committee as if €600,000 worth of equipment disappeared into an inventory of just over €30,000.

In a session full of "misconceptions" and "inaccuracies", as they were called by speakers from Kols, the Ministry and the NAO, it transpired that the ministry doesn't really know what they own in terms of Kols' inventory.

Chair of the PAC, Tonio Fenech pointed out that he had no financial statements to show what happened to the €600,000 worth of equipment which should be in the inventory. After spokespersons from Kols pointed out a depreciation which may or may not lead to such a loss in value, Mr Fenech insisted that there still needs to be something down on paper.

Spokespersons from the ministry initially said, as the Cooperative Societies Act says, that the government cannot interfere with how the cooperative is actually run. However, it was rebutted by the Chair that when it comes to finding out what the State actually owns, then they are not interfering in the least, they are merely keeping an eye on what's theirs.

Another issue pointed out was that €7.5 million were apparently handed out as overtime payments between 2009 - 2014. The Co-op's representatives pointed out that there was a great lack of knowledge with how the Patronage Refund works.

It was explained that the Patronage Refund is more like an accumulated reserve because the members of the cooperative are responsible for the machinery they need to buy. Once they buy it from the Patronage Refund, it then belongs to the State.

Mr Fenech then countered by saying that there is an Equipment Reserve fund into which €5,874 a month is injected that can handle buying equipment. This, however, was explained by members of Kols who explained that that fund is more to do with buying spare parts. When it comes to entirely new machinery, the money needs to be taken from the aforementioned Patronage Refund.

The hearing brought up the incredible amount of confusion reigning in Kols. This was highlighted by, among others, Claudette Buttigieg, who pointed out it would seem the cooperative was searching for loopholes so as to keep things as they are.

There was also confusion as regards the legal standing of Dr Ray Scerri who at times represents the department but at other times acts as though he manages the cooperative.