Payments made for EuroPride Parade 2023 totalled €4,638,005 as of 31st July 2024, significantly surpassing the original budget of €2,500,000 by 86 per cent, according to the National Audit Office (NAO).
This substantial overspend was outlined in the NAO’s Annual Audit Report on Public Accounts 2023, which flagged major shortcomings in budgeting, procurement, and management of the event.
A breakdown of the budget overrun
The report highlighted that the €2.5 million budget allocated to the EuroPride Parade 2023 under the Ministry for Home Affairs, Security, Reforms, and Equality (MHSR) was exhausted by the end of 2023, with additional funding requests of €1.76 million and €437,152 made in early 2024.
The total expenditure recorded stood at €4.64 million, with over €83,000 in invoices still pending at the time of the audit.
The NAO found that this significant overspend stemmed partly from unanticipated expenses, such as security costs totalling €413,604 and adverse weather conditions affecting the opening ceremony. However, these factors alone could not account for the massive variance.
Procurement irregularities
The audit uncovered widespread failures in the procurement process.
None of the sampled goods and services were acquired through departmental tenders, even when thresholds requiring them were exceeded. Many purchases also lacked the necessary direct order approvals, raising serious concerns about compliance with procurement regulations.
Additionally, the procurement process was fragmented, with services like stage setup and merchandise procurement split into smaller contracts, seemingly to circumvent tendering requirements, highlighted the report. In several instances, quotations for essential services, such as lighting and stage setup, were obtained mere days before the event. This last-minute approach not only undermined transparency but also limited competition among potential service providers, it added.
Compounding these issues, many payments were inadequately documented, with only invoices provided to justify transactions, casting further doubt on the integrity of the procurement process.
The NAO noted that this approach raised serious concerns about compliance with public procurement regulations and accountability in the use of taxpayers’ money.
Governance challenges
The NAO also highlighted unclear roles and responsibilities in organising the event, which involved a voluntary organisation, Government entities, and private companies. Despite repeated requests, the NAO could not identify who was directly responsible for budget monitoring and procurement oversight.
The lack of clear accountability was further complicated by multiple ministerial changes during the event’s preparation and aftermath. The Parliamentary Secretariat for Equality and Reforms shifted portfolios multiple times, leading to gaps in oversight and delays in providing vital information for the audit.
One glaring example of governance failure involved a €77,700 accommodation agreement for an international artist’s entourage, which was approved retrospectively after the event. The artist in question is presumed to be Christina Aguilera, the American singer who headlined EuroPride 2023.
The NAO criticised this practice, stating that it undermines transparency and good governance.
Government response
The Office of the Prime Minister – Equality, Reforms, and Social Dialogue (OPM-EES) defended its actions, stating it adhered to procurement regulations and provided information to the NAO to the best of its ability. However, the NAO found these claims inconsistent with its findings, calling for improved processes in future events.
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Malta Pride / Facebook
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