Over the past months, government has held discussions with the leadership of the GO Employee Foundation to find a sustainable solution for this foundation in order for there to be justice for present and past employees.

An agreement with the leadership of the foundation was reached, however it was not accepted by the members, a government statement read.

"Instead, the GO employees Foundation has proposed that the pension fund be liquidated and, that after creditors are paid, the balance (around €5 million), be divided among present workers".

Government is not in a position to consent to this request for a number of reasons.

"Firstly, The legal advice given by the Attorney General's Office was that the liquidation and division of assets between the current pension fund that had received help from Government on condition that such aid serve a particular purpose. This can also be viewed by the courts as an act of criminal misappropriation. This is because such action, would, contrary to the purpose for which the aid was granted by the government, deny future pensioners the opportunity to take sum when they reach pensionable age while the funds divided between current members goes against the purpose for which the fund which was set up through government assistance".

"Secondly, the same advice confirms legal doubts as to how the majority of votes required under the statute of the Foundation were garnered, as units were given to those who were not entitled to them under the Foundation rules, which could not be changed . These units translate into monetary compensation if the Fund is liquidated".

"Thirdly, members of the Foundation ignored government's offer, on which there was agreement with the workers' representatives on the Foundation Board, where the Fund was to be strengthened and be given the necessary flexibility for it to become sustainable, for both current and future beneficiaries".

Government was ready to forgive a debt of almost €1 million which was owed from when the Fund was established back in 1998. This loan was given to purchase shares in the company, which at the time was known as Maltacom.

The government wanted the Foundation to hire financial experts to manage the fund so that any employee who has worked with the company and reached the retirement age, or finished employment with the company, take a decent sum. At the same time payments of outstanding debts, both with individuals and with the Government, would be made.