If you thought your bank account is looking like a ghost town, just thank God that you aren’t the Żebbuġ local council.
At least 11 local councils in Malta are apparently working at a loss, with some councils running on a deficit of over half a million euros, and others lacking proper financial records, a new report has revealed.
A report by the Auditor General has sounded the alarm, saying that five Maltese councils and six Gozitan councils will not be able to “honour their financial obligations” in the future.
The local councils of Valletta,Pietà, Birkirkara, Żebbuġ, Kalkara, Għasri, Ta’ Kerċem, Rabat in Gozo, San Lawrenz, Ta’ Sannat, Żebbuġ in Gozo are all financially in the red.
In addition to that, Valletta, Vittoriosa and Kalkara’s accounts could not be fully verified due to a lack of financial records and related documentation, TVM reported.
In addition to these councils, the Qrendi local council and Gozo regional council failed to submit their audited accounts in time.
Żebbuġ, Malta, has it the worst, with a deficit of €550,000.
Birkirkara is doing second worse, and the auditor has warned that these councils would soon not have enough assets to cover their liabilities
However, it’s not all bad news – three councils were able to get their finances back into the green, with the council of Xagħra actually improving its assets by €0.25 million.
Councils are being asked that they start looking into these financial shortcomings and ensure that their purchases conform with the government’s financial regulations – but until then, seriously local councils, try and be a bit more fiscally responsible maybe?