Six serving and former local councillors and two directors of a travel agency were accused in court today of defrauding the European Commission of some €96,000 in travel expenses.

Police Inspector Ivan Cilia, prosecuting, told the court that the company, KD Travel Services Ltd would issue hand-written receipts, mostly for €599. Then, computerised receipts would be issued for smaller amounts, which were the actual prices The councillors would claim reimbursement for the €599 and pocket the difference.

He gave one example when a flight was seen as costing €599 when the actual cost was €446, and the difference was pocketed.

This abuse came to the knowledge of the European Anti-Fraud Office because of the large amount of tickets issued, all for €599. The investigation was concentrated on the period February 2004 to February 2007.

The accused, who are all pleading not guilty, are  councillors  Kenneth DeMartino 51, Swieqi, a director of KD Srvices Ltd, Paul Cortis, 56 of Naxxar, general manager of KD Services, Doris Borg, 76 of Birkirkara, Guzeppi Borg, 71 of Mellieha, Oreste Alessandro 63 of Fgura, former secretary of the Local Councils Association, Michael Cohen 54 of Kalkara, president of the LCA, Claudette Abela Baldacchino, 38 of Qrendi, Dr Ian Micallef, 42, of Gzira, former LCA president and Noel Formosa, 39 of San Lawrenz, Gozo.

Neil Thompson, representing the European Anti-Fraud Office, said he had personally investigated the case. He went to the offices of the LCA where information such as the sales and purchase ledgers, bank statements and e-mails regarding the flights were seized. The same was done at KD Services as part of investigations into parallel invoicing.

He confirmed the evidence of the police inspector.