The GWU has urged the government to order a public inquiry into a conversion contract which, it said, could cost Malta Shipyards a loss of €46.59 million (Lm20 million) over two years. It also insisted that the shipyard’s executive management should either explain or be held responsible.

The union in a statement complained that it had long been denied access to detailed financial information at the shipyard, in violation of legal notice 10 issued in 2006.

It had, however, carried out research into a conversion contract on which the shipyard had been involved for the past two years.

It said the executive management had engaged a foreign expert to help draw up the contract, but he left after six months despite a three-year contract. The management allowed him to leave without conditions.

The union said it had come to know that the contract was “radically disadvantagous” for the shipyard. This was borne by the fact that works were altered sometimes as much as three or four times. The subcontractors made money while the shipyard incurred losses.

“Investigations which the union had to carry out because of a lack of official information, shows that the shipyard is losing a susbtantial sum which can reach Lm20 million over the two years of the contract,” the union said.

This meant, it added, that the shipyard would not even be able to cover the costs of the raw material and the subcontractors, when there was no reason why the yard could not make a profit at least on these aspects.

No one was immediately available for comment at the shipyard.

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