WSC to claim costs over delayed projects

The Water Services Corporation (WSC) has informed contractors working on the development of two sewage treatment plants that it intends to make claims to recover the costs of their delay in delivering the work on time, the Ministry for Investment, Industry and Information Technology said yesterday.

In a statement, the ministry said this action was in line with the direction set out by Austin Gatt, the Minister for Investments, to the WSC board of directors in his letter dated August 9.

The Gozo plant, which was scheduled to be commissioned by the middle of this month, is being developed for the corporation by Degremont SpA.

The Malta (North) plant, scheduled for commissioning by the end of this month, is being developed for the Corporation by IBI SpA and the Polidano Group.

On August 9, Minister Gatt had written to WSC chairman Michael Falzon castigating the corporation's board for its handling of cost overruns on these capital projects.

Mr Falzon subsequently tendered his resignation, citing the "astounding lack of trust" in the management of the corporation. The minister refused the resignation and a few days later Mr Falzon wrote to Mr Gatt saying he was prepared to retain his post, a development the Labour Opposition had termed a "farce".

On August 26, Labour leader Alfred Sant called for a public inquiry at the WSC, claiming the two contractors who were awarded most of the corporation's contracts were falling behind in their work and increasing the expenditure.

In the most recent development, on August 30, Dr Gatt asked the chairman of the House Public Accounts Committee, Labour MP Charles Mangion, to conduct a public inquiry into the allegations made by Dr Sant.