Sant, Gatt again cross swords over Brindisi port

Labour leader Alfred Sant yesterday demanded a public explanation from Investments Minister Austin Gatt over the Lm4 million investment he said had been made in the Brindisi port, which he called money down the drain.

But in what he said was the fifth time this week, Dr Gatt promptly explained that the Freeport Terminal had transferred the financing of a loan made by the Brindisi Terminal to buy machinery, from an Italian bank to a Maltese bank.

Dr Sant has accused the government of investing Lm4 million in the "botched" Brindisi terminal project and buying up the port's remaining shares in August instead of halting the process.

Yesterday, in a party event in St Paul's Bay, he said the government had never given an explanation for the new investment.

He said in order for the investment to be made, the money had to be borrowed from the bank, on a government guarantee that repayment would be made by the end of the year. The guarantee had to be made because there was no confidence that there would be a return on the investment.

Dr Sant said that if Minister Gatt remained mum on the issue, it was the duty of the Prime Minister to give the necessary explanation.

Dr Gatt replied that no investment had been made in the Brindisi port in August, and the Lm4 million referred to by Dr Sant were used to substitute an already existing loan from an Italian bank.

The transfer of the loan financing to Bank of Valletta had been made in order to allow the loan to be paid back by Malta Freeport at a more comfortable pace, the Minister said.

"It is difficult to understand how the Leader of the Opposition could continue to ask for an explanation when it has been given to him repeatedly, and which after all was clear from the Malta Freeport accounts which he has read."