Three out of 10 government payouts to Air Malta staff for alleged ‘injustices’ should not have been approved, according to an audit report.
In a lengthy study spanning all sectors of government, the NAO found shortcomings in the way payouts had been made to former Air Malta staff over what they claim to be injustices in their wages.
The matter revolves around a 2019 initiative by the tourism ministry to look into Air Malta staff’s claims of wage variations linked to the airline’s previous rescue plan in the face of rough financial headwinds.
Just last month, Times of Malta reported that more than two dozen former employees are still demanding compensation in arrears due to the national airline’s 2004-2011 wage freeze.
The NAO said it had carried out a review of a sample of 10 of the 286 payouts which had been approved by the tourism ministry.
The auditor found that, despite it being clear from the outset that “cases that occurred before or after the period 2007 and 2014 will not be considered”, three out of the 10 reviewed payouts were for ‘injustices’ which had occurred before or after the eligible timeframe.
The compensation paid out to the 10 cases reviewed by the NAO totalled €80,221.
Up till the end of September 2020, the total settlements paid out by the government amounted to €882,498.
The NAO said that the most notable payouts were made to two individuals who claimed that, since Air Malta had failed to set key performance indicators, they had not been paid their performance bonus entitlement.
Following an internal investigation, the two individuals concerned were paid €48,8619 out of the ministry’s funds.
This represented the maximum performance bonus as allowed in the relevant contract agreements.
In recommendations to the government, the NAO said the tourism ministry should ensure that reviews carried out stick to the eligibility criteria.
Failure to do so could lead to discrimination against other alleged victims, the NAO warned.
The NAO said that entities falling under the ministry’s portfolio ought to have the necessary controls in place and it could not be held responsible for their shortcomings.
In a reply, the ministry accepted the NAO’s findings and recommendations.
The ministry said its accounting department was only tasked with processing payments according to a grievance board’s rulings.
“The ministry rested on every decision which was taken independently by the board, as is customary procedure,” the ministry said.