Friday, 20 January 2012

You are not alone

No this has nothing to do with Liverpool's 'you'll never walk alone'.   It is no secret that I am an INTER fan and would not dedicate an article to a British football team.

Confused about Air Malta

It has all to do with the news coming out regarding Air Malta.   And if the news is confusing you then you are not alone because it is really, I mean really, confusing.

This was reported in the Times today.   My comments appear in red hereunder

The government is seeking EU approval for a capital injection of 78 million euros into Air Malta.

Where is the money coming from?  It is not in the 2012 Budget.
Speaking during the presentation of the Air Malta annual report and consolidated financial statements for the year ending last March, chairman Louis Farrugia said the government also wanted to convert the 52 million euros rescue loan given to the airline into share capital.

In the Budget for 2012 this EUR 52 million appears as revenue and government said that in 2012 it will recover the loan made to Air Malta.  Now in less than 2 months  government seems to have changed its mind and is proposing to convert this loan into share capital.

So could it be that the budget cuts announced earlier are meant to make up for this 'lost' revenue??

Mr Farrugia also announced that that the airline will be selling its property to the government for 66.2 million euros. The promise of sale was signed in December and the first down payment of 20 million euros was received this month.

Again there is no budget for such an investment by government.   This builds the impression that government will be going for an election before presenting the 2013 Budget so all these problems will be inherited by successors.

How was the value of EUR 66.2 million arrived at?   MELA QEDIN SEW!!!  Government gives valuable land at Bugibba to the new owners of Maltacom for free and then it buys land from a subsidiary company at full market price and more!!

Say a prayer for the Maltese taxpayer, please.

1 comment:

  1. The Budget for 2012 is clearly now irrelevant and not worth the paper it is written upon. Government should present a new one to explain the real financial situation and then resign.

    Obviously it will do the opposite. Plod on in government without a financial barometer and without a majority in parliament. Cling on at all costs.