Participants in the loan scheme which the Labour Party had introduced in 1994 to raise funds to build the new Headquarters in Hamrun could give up to Lm500, equivalent to around €1,160.

The Labour Party turned down any suggestions claiming that the PN Cedoli Scheme is somehow similar to the scheme which the Labour Party had introduced in the nineties. The PL said the scheme was different in two principal ways; in the anonymity and in the amount that each participant could give.

Speaking to The Malta Independent, Labour Party CEO Gino Cauchi said that loan by the Labour Party only allowed for units of Lm20 to be given to the party. But when asked to explain what the PL scheme exactly entailed, the party CEO said that the scheme also gave an opportunity for those willing to invest much more.

“The Labour Party had essentially introduced two schemes; one with a loan of Lm20 and another one for those who want to invest more,” he added. Those who were willing to give more money to the party could do so as long as they did not exceed the Lm500.

The money was handed to the party as a loan with no interest and some, not many according to Mr Cauchi, are still collecting their money till this very day.

“We cannot compare the PL scheme with the PN’s cedoli on one other important reason – anonymity,” the party CEO said. In fact, those who had participated in the PL loan scheme were presented with a certificate which showed the name of the participant with the amount given. This newspaper managed to acquire a copy of a certificate which was presented by the party.

The PN Loan Scheme was received with harsh criticism from the Labour Party which even claimed that the scheme is very close to money laundering practice and fraud. But one major issue which concerned the Opposition’s initiative is that the PN would not reveal the name of those participating in the Cedoli.

Among those who took part in the Labour Party initiative, there are those who decided not to get their money back and left the money as a donation to the party. Gino Cauchi said these were presented with a donation’s receipt. “The Labour Party presents a receipt for every single donation its receives.”

“Even as it was the PL scheme back in the nineties, it would still be within the parameters of party financing,” he added.

On Monday the Labour Party called a press conference to call on Simon Busuttil to publish the names of those who participated in the cedoli scheme by the Nationalist Party. Gino Cauchi described the scheme as very close to fraud and money laundering. He said it goes against the spirit of party financing.

The PL asks how is it possible for a party which never denied media stories about serious debt issues, suddenly guarantee a 4% interest rate for donors. He also explained that the Labour Party always presents its audited accounts in every annual general meeting.

Minister Owen Bonnici, who expressed his doubts on the actual €3 million sum which Simon Busuttil said was raised by the scheme, said that this was not the first occasion when the PN turned for investors for help. "Will the PN publish the names of the 300 participants?" he asked.

In an interview, the Leader of the Nationalist Party Simon Busuttil had revealed that the PN Cedoli scheme had managed to raise almost €3 million. The scheme is being handled by the PN General Secretary Rosette Thake and PN Executive President Anne Fenech.