Government to seek damages

The government is to seek damages which industry sources believe could run into hundreds of thousands of liri over the collapse of the tendering process for the new hospital's IT system.

Sources said the matter had been referred to the Attorney General since countless hours and money had been wasted as a result of the failed process and legal action was expected to be taken. The government was forced to announce a fresh call for tenders following court action last month by the police in connection with the tender for the Integrated Health Information System at the new Mater Dei Hospital.

An investments systems officer at the Ministry of IT and Investment and a part-time employee at Inso, a company forming part of the consortium AME that was awarded the IT contract, were charged with bribery offences related to the process.

Both men, Noel Xuereb and Pierre Mercieca, pleaded not guilty to the charges.

However, the Cabinet last Monday decided to issue the new call after the Attorney General concluded that the implications of the police action on the tendering process were so severe that it ought to be cancelled.

"This is a testimony of the government's seriousness and responsibility," the government said in a statement.

When contacted yesterday, the government said it was still not clear whether the breakdown of the tendering process would impinge on the projected July 1 opening date for the new hospital.

The original call for tenders was issued on January 18, 2006. Two companies, AME and iSoft, bid.

Shortly after, most members on the tender adjudication board, including Mr Xuereb, selected iSoft as the preferred bidder.

Later, however, members of the adjudication board felt that iSoft was not as promising as it had seemed. AME was declared the preferred bidder after a report claimed that iSoft had gone bankrupt.