Several public officers have been suspended as part of an ongoing internal investigation as to why four projects by the Malta Transport Authority, the Malta Tourism Authority and the Competitiveness and Communications Ministry to make use of EU funds were submitted late, Parliamentary Secretary in the Finance Ministry Tonio Fenech said yesterday.

Mr Fenech referred to recent reports in the media regarding late submissions to obtain EU funds for projects.

“There were only four late applications – unlike what was said in the media. The government is investigating why certain applications were submitted late. Several officers who were responsible were suspended,” he said.

He went on to say that the late submissions were not done out of malice but probably through mismanagement and incompetence.

“It is unacceptable that we will lose out on EU funds through incompetence. The public service has to realise that these funds have to be used to the full,” he said.

Furthermore, he added, it is not as though the deadline for the call for projects was a week after the call for applications.

Mr Fenech pointed out that Malta was the first country that completed the negotiation process in June whereby it would utilise to the full the EUR855 million (Lm370 million) allocated between 2007 and 2013.

He added that it took Malta a long time to close off the negotiation process and that even though the funds have been technically available since 1 January, these can only be used after the whole financial packet has been approved.

Mr Fenech said that there already have been a number of calls for projects to utilise the funds under each priority axis.

These were as follows: EUR25 million (Lm10.8 million) for enterprise infrastructure, EUR20 million (Lm8.6 million) for research and development, EUR80 million (Lm34.6 million) for sustainable tourism, EUR25 million (Lm10.8 million) for internal mobility and EUR20 million (Lm8.6 million) for education, social and health related infrastructure.

The parliamentary secretary said that there were 74 applications amounting to a total of EUR170 million (Lm73.6 million).

However, he added, the applications will amount to around EUR380 million (Lm164.5 million).

He explained that the funds have to be allocated over a period of seven years and that more calls for projects will be issued.

Mr Fenech pointed out that no funds are lost as “these funds are secured in Malta.”

Therefore, if there is a late submission then the applicant will have the chance to apply again.

Mr Fenech said that an evaluation committee will be set up to analyse and ensure that all the submitted projects respect the eligibility of the programme.

“I will make it very clear that the approved projects will be the ones that match the criteria,” he said.

He also referred to reports in the media quoting a report commissioned from the European Parliament that stated that Malta had one of the lowest rates of absorption of EU funds.

Mr Fenech explained that when the report was being compiled, in February, Malta still did not have many projects under its wing.

However, he added, the funds allocated between 2004 and 2006 can be spent until the end of 2008 – it is a long process.