From Mr N. Attard

Reference is made to the article by Noel Grima titled “Increase in the number of defaulting councils” and to the letter by Richard Stagno Navarra titled “Checking expenditure of local councils is a must” (TMIS, 16 and 23 January respectively).

The Department for Local Government would like to make the following comments and clarifications, mainly in view of its role of monitor of local council functions and operations:

The Auditor General’s report mentioned in Noel Grima’s article covers the local councils’ financial year ending 31 March 2004;

At the end of the said financial year there were seven local councils “in the red” – that is, ending with a deficit in their working capital. The nine councils which ended the financial year with an expenditure exceeding their income did not actually end up in the red as indicated in the said article;

The Auditor General’s concerns, as highlighted in Mr Stagno Navarra’s letter, were in fact discussed with the Department of Local Government in order to address the shortcomings both in terms of stricter controls as well as with the necessary legislation to regulate those areas that were not specifically legislated on. The main thrust was specifically for the same reason given by Mr Stagno Navarra, namely that “no local council should be allowed to play around with the taxpayers’ money”.

The Department for Local Government is continuously monitoring the operations of local councils. Financial control is mainly exercised within the context of the financial regulations and procedures applicable to local councils.

Many of the concerns identified in the Auditor General’s report, unfortunately, refer to areas that are not covered by legislation (such as the issue of mobile phones to councillors and limit with regard to expenditure on gifts).

The Auditor General’s report, which has been extensively discussed with the department, has identified those areas that need further legislation for the exercise of stricter financial controls, as well as the need to strengthen the department’s Monitoring Unit.

As regards further legislation, draft proposal for new or amended regulations are in the pipeline. As for the strengthening of the Monitoring Unit, the department has been given the necessary funds to engage two monitoring officers, and an “internal call for applications” will be issued very soon.

While acknowledging the autonomy of local councils as local government authorities, it should be pointed out that the functions and operations of local councils are subject to the scrutiny of the pertinent authorities as well as the statutory guiding principle of economy, efficiency and effectiveness that every citizen quite rightly expects.

It is in this regard that the department will continue to monitor local councils’ functions and operations in the interest of good local governance and the interest of the taxpayer.

Natalino Attard

Director,

Local Government Department

Editor’s note: How about letting the general public know which council gave gifts, which councils had faults in accountability, as well as all the other faults and mistakes made by the various councils and identified by the Auditor General? This was the thrust of Mr Stagno Navarra’s letter but the reply from the Local Government Department does not refer to it at all.