PN edges PL on financial reporting

The Nationalist Party has edged ahead of Labour in publishing its financial accounts, submitting its audited statements for 2025 while Labour’s latest published accounts still cover 2024.

Malta’s Financing of Political Parties Act requires audited accounts to reach the Electoral Commission within four months of the financial year’s end.

For both parties’ December year-end, the ordinary deadline for 2025 was 30 April 2026.

The PN’s latest report was submitted last week, 141 days after that deadline. Labour has not submitted its 2025 accounts yet.

The PL’s latest accounts go back to 2024 and were submitted more than 200 days late.

PN 2025 accounts: a surplus with repayment pressure

The PN returned to a modest surplus in 2025, recording €102,623 after a €737,733 deficit the previous year, its accounts state.

Income increased by almost 15% to €2.43 million, supported by higher donations, membership receipts and rental income.

Its €778,683 operating surplus requires context.

Contributions to controlled entities, mostly the loss-making media, generated a €689,263 impairment charge, substantially reducing the final result. The cash-flow statement records an equivalent cash advance, showing that support for those entities continued to absorb funds.

Borrowings declined by just €117,360 to €10.16 million. Interest expense reached €428,279, consuming nearly 18% of annual income.

The sharper concern is repayment timing.

Current liabilities climbed to €5.86 million against current assets of €1.60 million, leaving a €4.26 million shortfall. Much of the deterioration reflects borrowings becoming classified as repayable within one year.

The PN reported €4.61 million in positive net assets, but these depend heavily on property valuations. A €14.36 million revaluation reserve offsets accumulated deficits of €9.75 million.

The party also disclosed guarantees of up to €5.35 million supporting controlled entities’ banking facilities. These are contingent exposures, rather than additional debt automatically payable by the PN.

Its auditor issued an unmodified opinion.

The figures nevertheless show that improved annual performance has not removed the need to manage substantial debt maturities.

PL 2024 accounts: property wealth, tight cash

Labour’s latest accounts show a €1.10 million deficit for 2024, reversing a €400,290 surplus in 2023.

Campaign and election expenditure rose to €1.77 million from €235,477. This included €1.57 million attributed to European Parliament and local council elections, making campaign spending the principal driver of the deterioration.

Labour reported €40.06 million in assets and €32.85 million in net assets, substantially exceeding PN’s figures. Much of that strength rests on property – mostly acquired during the years from the government, including assets held through clubs and controlled entities.

Cash availability tells a different story.

Labour held €599,426 in cash balances, but its €596,105 overdraft reduced net cash to just €3,321. Current liabilities exceeded current assets by €1.98 million.

Operating cash inflow after interest was €390,776, helped by a €1.10 million increase in trade and other payables. New bank borrowing of €1.2 million accompanied €1.3 million of property and equipment acquisitions.

The auditor’s opinion was unmodified but highlighted uncertainty surrounding property valuations.

Both parties account for controlled entities without fully consolidating their liabilities. Their published balance sheets cannot establish the total debts of their wider organisations, which in both cases are considered to be substantial.