Platinum International Ltd, the company that has allegedly defrauded clients out of thousands of euros, was never licensed by the Malta Tourism Authority, an MTA spokesperson has told The Malta Independent.

"Platinum International Ltd was never licensed by the MTA to operate as a travel agent, much less authorised to trade in package travel,” the spokesperson said. 

The newsroom sought clarification as to whether the company was breaking any form of regulation by failing to have an MTA license, however, replies to questions sent remain unanswered at the time of publication.

The Malta Independent on Sunday reported how the Office for Consumer Affairs (OCA), in collaboration with the MTA and the Police, were assessing what legal action can be taken against the company, after a number of people who registered as members with what is known as ‘Escape from Malta’, were left with unpaid hotel bills and non-existent bookings.

The same company even sent ‘falsified’ bank transfers and flight tickets, as confirmed by the hotel and flights operators, to its clients.

Meanwhile, the company’s Malta Financial Services Authority (MFSA) registered Director Michael Tolan and Company Secretary Bernadette Gauci have begun pointing fingers at each other over the company’s mismanagement, with the former telling this newsroom that Gauci was presenting herself as the ‘victim’, and the latter claiming that she resigned after being left with unpaid wages in the thousands.

In comments to this newspaper, Tolan claimed that he had turned over the total running of the business to Gauci in the capacity as Managing Director with “a full trust demonstrated by power of attorney to operate the business in Malta including bank accounts”, with him retaining the role of an absentee owner.

"She was the sole signatory on the bank, and collected and dispersed all funds in her legal and official trusted capacity; my legal advisors are looking into her mismanagement, misappropriation of funds and embezzlement,” Tolan said.

He has since declined to provide documentation to verify his claims, telling the newsroom that his lawyers have advised him to refrain from commenting on the case.

The newsroom has attempted to contact Chetcuti and Cachia Advocates Managing Partner Jean-Philippe Chetcuti, the lawyer and nominal shareholder of Platinum International (as shown on the MFSA registry), however, he has ignored all contact.

 

Platinum clients will not be able to access travel insolvency fund

The MTA was also asked whether clients of Platinum would be able to access the newly established travel insolvency fund, which was established after tour operator ‘Fantasy Tours' declared bankruptcy six months after it sent an SMS informing clients that the company would be closing down and that their planned holidays would not materialise. 

"It of MTA’s belief that Platinum was selling exclusive membership for timeshare-like operations, meaning that the company could have never subscribed to the Travel Insolvency Fund."

The insolvency fund, which was set up through Legal Notice 315 of 2016 in accordance with relative EU directive, provides security to consumers for a refund of money paid upfront for package travel booked; and for the repatriation of travellers in the event of the insolvency of a travel package organiser.

All MTA licensed package and travel organisers/retailers contributed a deposit of €10,000 to the fund, regardless of the company’s size.

The fund should always have a minimum of €500,000, following the government bailout to refund clients of Fantasy Tours which amounted to roughly €400,000.

The operator will also have to contribute €2 per person (over 18) per package sold.

Funds generated from the contribution will be deposited in a second insolvency fund operating account that will also contribute to insolvency protection.

"Customers are reminded that they are to check with the MTA website, to ensure that they only buy a travel package from MTA approved licensed travel agents. Furthermore they are also to ensure that they are provided with an insolvency fund certificate when making the booking,” the MTA stressed.