Firms demand Lm8.5m arrears from government
Twenty companies involved in the supply of pharmaceuticals, medical equipment and services to the Ministry of Health have presented a judicial letter claiming the government has continued to ignore their repeated demands for payment of arrears which...
Twenty companies involved in the supply of pharmaceuticals, medical equipment and services to the Ministry of Health have presented a judicial letter claiming the government has continued to ignore their repeated demands for payment of arrears which amount to more than Lm8.5 million.
They demanded payment within five days.
The companies are A.M. Mangion Ltd, Alfred Gera & Sons Ltd, Associated Drug Co. Ltd, Associated Equipment Ltd, A.T.G. Co. Ltd, Charles de Giorgio Ltd, Drugsales Ltd, E.J. Busuttil Ltd, Cherubino Ltd, Euro Healthcare Ltd, Galepharma Ltd, Krypton Chemists Ltd, Orme Laboratory Supplies Ltd, Pharma-Cos Ltd, Salomome Marketing Ltd, V.J. Salomone Consumer Lines Ltd, V.J. Salomome Pharma Ltd, Godrico Ltd, Technoline Ltd and Vivian Corporation Ltd.
Their judicial protest was filed in the First Hall of the Civil Court against the director general of the Health Division, the director health procurement and supplies services and the Attorney General, claiming they were collectively owed Lm8,527,042 for medicines, medical equipment and services rendered to the director general of the Health Division and the director health procurement and supplies services.
The companies argued that in spite of repeated demands for payment, these had still not been received in full and over Lm8.5 million were still outstanding.
They claimed that according to the EU Late Payment Directive, each of those presenting the protest was entitled to interest on the outstanding amount that is not paid within a reasonable time.
Some of the monies due, they said, have been pending for months and in some cases for years. This was not the "reasonable time" contemplated in the directive and payment should be made forthwith, the companies argued.
Dr Hugh Peralta signed the protest.
Last month, EU Commission sources had told The Times that the director-general enterprise and industry of the European Commission had drafted what is known as a "reasoned opinion" declaring that there was an infringement with regard to the transposition of the Late Payment Directive and that the Maltese government had to correct it.
Unless this is rectified by the end of August, the case will be brought before the European Court of Justice.