The Mutual Help Fund, which holds funds for donations for heirs and family members of retired or active police officers who pass away, will be phased out over concerns on the fund's financial sustainability, causing a group of retired police officers to call for a reversal of the decision and question how the fund, which is managed by the Police Commissioner, has diminished.
The group pointed towards mismanagement of the fund and took umbrage with both the Malta Police Association and the Police Officers Union for supporting the fund's removal. A Police Spokesperson told The
Malta Independent that currently, "serving members of the Force are still paying their quarterly contribution as mandated by regulation 12 of the Malta Police Regulations.
"In view of the recent National Audit Office (NAO) audit which has remarked on the Fund's financial sustainability, the administering committee regulating the fund - which committee is inter alia composed of representatives of the two police unions and the association of retired police officers - decided that it should gradually be phased out.
"Hence, as from this year, all police pensioners will not be paying anymore their annual contribution of €13.98. They will gradually be receiving all contributions they have paid throughout the years, both when in service as well as in retirement." Asked specifically when the fund will be expire, the spokesperson replied "kindly note that the Mutual Help Fund would take years to be no longer in affect" without providing a concrete date or year.
The NAO flagged issues with regards to the "insufficient control over income" saying that "given that this money is not segregated, it cannot be ensured that the portion of contribution intended for such assistance is actually being retained and used for its intended purpose, particularly in view of the limited controls over the said Fund."
"Money intended for specific purposes is to be kept in separate accounts, ideally managed by different officers. Hence, more control will be exercised over the said funds, reducing the possibility that they are used for reasons other than those intended. Furthermore, this will also result in more accurate, reliable and up-todate information, translating into effective and efficient decisionmaking."
The Mutual Fund was part of a larger one, called the General Fund, which is financed through a contribution of €13.98 made by each police officer every three months. €11.65 went towards the Malta Police Association, while the rest when to the fund, which is managed by the Police Commissioner.
The compensation, which was used to cover funeral expenses, currently stands at €3,000 for an active officer and €1,000 for a retired officer, it was previously €3,144 and €1,560 respectively and was reduced after concerns over the money within the fund.