GSD MP Roy Clinton said he was satisfied that no money is owed by the Gibraltar Government to Community Care.
Mr Clinton had asked the Principal Auditor to investigate what he believed to be a discrepancy in the charity’s accounts that showed a shortfall of £3.4m.
“The explanation provided [by the Principal Auditor] to Mr Clinton has clarified the issue and he is satisfied that no money is owed to Community Care by Government,” the GSD said in a statement.
But in revealing the content of the letter from the Principal Auditor, Mr Clinton said there were still unanswered questions relating to an £85m loan made by Community Care to an undisclosed entity.
“The Principal Auditor has stated that he considers payments made by the Government to Community Care to be donations rather than contributions and thus not subject to audit by the Principal Auditor,” Mr Clinton said.
“If treated as contributions then powers under the Public Finance (Control and Audit) Act to audit Community Care would apply as in the past.”
“I have pending questions in Parliament this week and if I do not obtain any information as to the beneficiary of the £85 million loan made by Community Care I intend to take up the matter with the Charities Commission.”