No policy as Enemed dishes out €2.3 million in sponsorships

The state company that has an effective monopoly on the sale of petrol across Malta while receiving tens of millions of euro in taxpayer subsidies every year has dished out €2.3 million in sponsorships and donations, even though it has no competition.

The money was spent in 2023 – 2024. This is over and above the staggering €2 million it paid for ‘marketing’ during the past eight years, raising questions about why the company is spending public money without any apparent justification.

To make matters worse, the company does not appear to have any written policy or guidelines on how sponsorships are decided, by whom, and who is eligible to apply. The company’s CEO, Kevin Chircop, refrained from making any written policy public when asked for a copy.

Instead, he said that as a commercial organisation, Enemed is open to collaboration with organisations that add value to the Enemed brand, particularly sports organisations.

“Enemed also supports charitable organisations and other NGOs. Like any other commercial entity, Enemed sets a marketing budget approved by the company board. Any organisation is free to contact Enemed. Once a request is submitted, internal discussions are conducted to consider the request and determine if, and to what extent, support should be granted or otherwise,” Chircop added.

New data published in parliament in response to questions by PN MP Ryan Callus showed most of these donations are directed towards organisations, including private businesses, that consume fuel. However, in many other cases, no association with the company’s remit appears. The list of beneficiaries can be seen here.

Some of the funds dished out make no sense because they are unrelated to the market in which Enemed operates, such as €100,000 to the Birżebbuġa Aquatic Sports Club Academy. The club is in Minister Miriam Dalli’s electoral district, and she is politically responsible for Enemed.

It was one sponsorship among many that supported band clubs and sports associations in the minister’s district.

Enemed’s sponsorships also supported private interests. These include Voomquest Ltd, which organises powerboat races, receiving €260,000; TV personality Claire Agius, paid €11,000 to act as a ‘brand ambassador’; MAvIO, which produces an aviation news website, was given €62,000; and TEC Ltd, Labour’s mass events contractor, was given €40,000 for a commercial concert by Andre Rieu.

A number of constituted bodies, particularly the GRTU, that act as lobby groups were also given tens of thousands of government funds from Enemed annually.

According to the latest published audited accounts, Enemed received €64.5 million in state subsidies to keep fuel pump prices locked in 2023.