The Labour Party yesterday questioned Water Services Corporation chairman Michael Falzon's ties with the Polidano Group, after Mr Falzon revealed he has a commercial interest in a development company.

In a letter addressed to The Times, Mr Falzon said he had interests in a development company which he co-owned with the Polidano Group and four other companies.

He was replying to what he termed as insinuations by Opposition Leader Alfred Sant who, in a speech during a party activity on Sunday, said Mr Falzon was friends with two construction companies which had taken the lion's share of contracts awarded by the WSC. Dr Sant had mentioned no names in his letter, and Mr Falzon laid bare his commercial ties voluntarily, saying the Polidano Group had only received contracts from the corporation when the price quoted for those services was the lowest acceptable offer as determined by the appropriate selection board. He even insisted that he had not been part of the selection board when these contracts were awarded.

The Labour Party, however, yesterday questioned the relationship. In a statement, it asked whether Mr Falzon had declared his ties to his fellow board members and Investments Minister Austin Gatt - whose portfolio includes Enemalta. Moreover, the party insisted, the government should declare whether it feels there is a conflict of interest with regard to Mr Falzon's position.