Auditor slams poor controls in road-building projects
An inquiry by the Auditor-General has found that the Transport Authority (ADT) had adopted an unorthodox payment process for road contractors whereby the contractor account was at times in credit., a report issued today showed. It was also found that project supervisors were nominated by the contractors themselves.
The inquiry, into control mechanisms deployed by the ADT in managing variations in road construction projects was requested by the Public Accounts Committee. The report was presented to Parliament.
Whilst noting the timely completion of the projects, financed under the Italian financial protocol, the auditor found that:
- Treating the projects as a departmental tender resulted in safeguards afforded by the Public Procurement Regulations being replaced by new, untested systems.
- Ministry of Finance approval for ADT to manage the projects outside the most commonly applied provisions in the public sector procurement regulatory framework did not take into account extra-budgeted expenditure. From an originally-allocated Lm12.9M (Italo-Maltese Financial Protocol funds dedicated to road works), project expenditure totalled Lm16.5M.
- ADT delegated project management responsibility to (external) supervisors who had been nominated by the contractors. No evidence was found to prove that ADT abided by Ministry of Urban Development and Roads instructions to maintain its own controls.
- NAO checks on a sample project revealed that ADT had adopted an unorthodox payment process whereby the Contractor account was at times in credit.
- Errors were encountered in bills. These had gone undetected for some time before being adjusted and in one instance the error went unnoticed.
- The role of the Supervisor was not correctly defined and the perception of transparency, effectiveness and accountability was clouded by the perceived link between Contractor and Supervisor. The various roles assigned to the Supervisor within the contract blurred this separation further.
The full report will be available at www.nao.gov.mt from tomorrow.
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Alan Schembri
Jun 16th 2009, 10:28
Thanks Auditor General for pointing out the actual issues, better late than never - so here we have the solutions and it's up to the government to implement. Definitely we should have an Independent Road Monitoring Board - the biggest scandal from this news is the conflict of interest between the contractor and the supervising body which kills the whole concept of control - how can we ever have good quality roads with such a structure?! It is indeed a shame and we have to act immediately in the interest of the country
C Buttigieg
Jun 16th 2009, 08:45
Did we really need this report to tell us that we are paying for substandard roads? Just have a look at the new roads after six months of use. Doesn't take an expert to tell me that the roads being costructed are just made to look good and not to last. I have seen better roads in the Libyan desert that have been there for decades so the excuse of the elements does not count either. This country suffers from a lack of accountability and before we fix that then these things will just keep happening and the abuse will carry on.
r ferriggi
Jun 16th 2009, 08:25
i think that VERY FEW maltese disagree with me that the country's most glaring problem is the road network.
IT IS A SHAMBLES. TOTAL DISASTER.
just to mention;
the ta qali - zahra enterprises road,
the xemxija to cirkewwa road,
many main roads in gozo
parts of the coast road near the salina hotel
st pauls bay main road
part of saqqajja road
naxxar main road
tal balal road
of course, i am not familiar with the south. i believe that there its worse.
jcmicallef
Jun 16th 2009, 08:09
I think it's time to abolish the traditional Ministerial appointment system and the appointment and empowering of authorities altogether, and instead the Gov, in agreement with the Opposition should identify experienced and capable business people to take up such positions.
People with track record and who know how to get things done.
The extra money that this may cost will surely be more than compensated by better controls, more effective work and better results.
Why should we have authorities like ADT, MTA and their respective/responsible ministries be run by a bunch of ppl who are totally ignorant of the subject matter, and, worse still, appoint 'consultants' who then end up making a whole mess?
These mistakes are costing us too much and are getting us nowhere. EU money down the drains!
Joe Galea
Jun 16th 2009, 07:08
An Gatt tells us that it is a Labour Government's of the 80's fault that the roads are in such a disastrous state. Gatt like Gonzi should resign asap. Incompetency at its best.
Yes Gonzi "In office and in power"...in office yes, but in power of what? Maybe in power of taking people for a ride, of driving Malta into a wall...?
We were never at these low levels as we are in now!! Shame on you PN government. Where are the blue eyed elves to come here and defend all these wrongdoings?
Andrew Cachia
Jun 16th 2009, 06:48
The civil service and departments have been taken government and tax payers for a ride for too long. up for a clean sweep within the departments first and foremost!!
Darren Cassar
Jun 16th 2009, 06:11
We have a government who s been there too long. Managed to get a few more votes in the last election by buying home appliances, giving unmerited promotions and any did not want the previous LP head in power.
This is not right.
How can the country go on like this for another four years.
Can't the government give a true interpretation of the last EP elections.
Unfortunately this is the time where maturity should prevail and a general election should be called.
AnthonyA.Mifsud
Jun 16th 2009, 05:10
My God, Is that all what,s wrong with ADT
To the Govt: resigne enblock
Tony
Dr Paul Sant Cassia
Jun 16th 2009, 02:00
I believe the Minister responsible had once bragged in the press that the quality of road construction would be checked by external monitors and not by the contractors themselves. Is this another case of posing as the strong-man, as seems to have occurred with the bus drivers and taxi drivers?
Pretty much EVERY so-called "Authority" established by the Government appears to be in a mess. We have moved from the state- corruption and incompetence of the Labour Party to the privatization of incompetence.
Max Bartolo
Jun 15th 2009, 23:15
Errors, errors and more errors! What sort of error was the one that went unnoticed? What were the extra LM 3.6M required for? These 'poor controls' are resulting in roads which are below standard. Are these errors also wasting taxpayers' money for nothing?!
Something needs to be done!
Max Bartolo
www.maltacarmarket.com
Joseph E Briffa
Jun 15th 2009, 23:13
@ Debattista ........ Il-par idejn sodi qeghdin anke fl-Awditur Generali..x'tippretendi li l-PM jaqbad in-nies minn ghonqhom? Mhux ghalhekk hemm l-Amministraturi?.. Kemm tifilhu tghidu cucati?
Joseph Grech
Jun 15th 2009, 22:40
This is YET ANOTHER scandal that erupts hard on the tracks of the infamous VAT department scam for which nobody accepted any political responsibility. YET AGAIN the buck again lands in the Prime Minister's hands and criticism is directed at him - for good reason.
It will be interesting to see how Dr. Gonzi will handle this one: will he finally see the light, realize that he is being treated disrespectfully (if not worse) by a number of his Ministers and other bureaucrats who keep letting taxpayers, the P.N. and the administration DOWN by not administering effectively and legally?
Will Dr. Gonzi react assertively this time in the interests of the nation or will he come up with the customary excuses? Only today he said that government needs to be sensitive to the complaints of citizens. This scandal gives him a chance to show he means business. If he backtracks on his word yet again on this one - then we - and our country - are well and truly being taken for a ride - which is unacceptable!
Heads NEED to roll. If anybody at ADT / the Ministry of Finance acted illegally they should be prosecuted no less!
vella v
Jun 15th 2009, 22:36
I believe that notwithstanding the supervisor, who obviousley confirmed works as carried out , a quantity surveyor from the mistry of works was also involved in certifying payments and if the contractors accounts were in credit then these same quantity surveyors should answer for thier actions ,corruption is never limited to one sector and with a daming report like that a detailed investigation into the earnings of these same people who certified payment should be made.But notwithsatnding various appeals these same people who should be there to certify the payments to contractors also work part time for the same contractors.Is this clean? I wonder
Rocco Camilleri
Jun 15th 2009, 22:12
Vera tal-mistrhija kif qed jitmexxa dal-pajjiz, flus il-poplu jigu misruqa jew uzati hazin. Il-kbir dejjem jikber u zghir joghdos l-isfel. Kif jista ma' jkollniex dan id-Defecit kollu meta ma' tezizti l-ebda accountability. Il-kbir hemm bzonn li jghati ezempju biex ta'tahtu jghamel xogholu kif suppost u bi transperanza. X'ma jkollniex shift ta' voti mill partit.
Jeremy J Camilleri
Jun 15th 2009, 21:42
Why don't the Demartinos and MArtinellis of this world ever have anything to say regarding similar issues?
Charles J. Buttigieg
Jun 15th 2009, 21:21
Par idejn sodi.......with the weak. Warrab Dr.Gonzi ghax Malta tnitnet. Issa, mhux 4 snin ohra, ghax morna l-bahar u dalwaqt nerqu.
Albert Bezzina
Jun 15th 2009, 21:16
Mystery of the persistently bad road network solved. Thanks Auditor-General!
Perhaps the same Auditor-General should try and explain to the tax-payers of this land why road re-building has to cost €500 per square meter, roughly, we can cover all our roads with 36 inch LCD television screens (wholesale price!) for the same money. Or, for the same price, all the roads can be turned into rivers of extra virgin olive oil 10cms deep! Kiku nindenjaw ruhna naghamlu kontroll fuq il prezz tal-bini tat-toroq, mhux bis fuq xi Panadol, kiku il-kwalita' ta nofs in-network tat-toroq Maltin ijja tajba. Money for nothing! (maybe chicks for free too).
F. Buttigieg
Jun 15th 2009, 21:14
This is a sign of lack of experience within the construction industry by the ADT. Such shortfalls within the system used for procurement and management are totally unacceptable mainly when project supervisors are nominated by the contractors and not by the client (ADT). This department should change it’s procurement systems and look at a design and build process where the contractor is allocated a fixed sum to design, manage and build roads within a specified time frame and budget, this way the contractor shoulder all liabilities while the ADT effects payments on a percentage bases according to performance.
John Debattista
Jun 15th 2009, 20:52
In office and in power. Fejn huma il Par idejn SODI Prim ?
Keith Davis
Jun 15th 2009, 20:37
Shame on the government and the entities involved !
John Paul Grech
Jun 15th 2009, 20:34
The Prime Minister has just told us that GonziPN will be more sensitive to the needs of the people. (I think I've already heard this statement some five years ago.) In this context, it is thus only fair that the PM speaks about this ADT case and about what is to be done to ensure that tested controls are in place and are not failing. We've had enough squandering of people's money! PM should also tackle responsibly the massive VAT fraud/scandal. Why is it that it looks as if nothing happened? Don't we have the right to know? Finally, the PM should commit himself to a firm date by which he should commence the much awaited RADICAL M.E.P.A. reform. Or is he going to linger till the eve of the next General Election in 2013?
Joseph Calleja
Jun 15th 2009, 20:22
Malta is still run by THE GOOD OLD BOYS SYSTEM. It's very hard to break old habits and it is still on the WHO YOU KNOW SYSTEM, etc. etc.. But then that's why they call it politics, and politics is run by politicians, which we sometimes elect to office.. Think of that the next time you cast your vote!
w.scicluna
Jun 15th 2009, 20:17
Typical. 3 simple words to sum it all up....Welcome to Malta!
Peter Azzopardi
Jun 15th 2009, 19:56
I thought we have a government and an opposition but I think we have none. Why did the auditor general take so long to realize?
wallace frendo
Jun 15th 2009, 19:52
First the VAT department, now the ADT. What's next?
kenneth spiteri
Jun 15th 2009, 19:51
funny....this story now...why??? hope it's not internal PN politics.... there aremany who know what i mean!!!!!!
A Caruana
Jun 15th 2009, 19:50
This is something tangible and can be seen..... so i can imagine what is the quality and professionalism of what is intangible and unseen. This what was meant by "With your vote MORE investment in the roads" ? haha Was there ever ANY proper investment first of all??? It would be better if such matters are kept underground..... what one does not know does not hurt. Its better we keep on thinking about the island as being a center of excellence enhanced with state of the art projects.At least this illusion brings smiles and as everyone knows .... laughter is the best medicine and this medicine at least will be free for ever.
Keith Davis
Jun 15th 2009, 19:48
The Government should be ashamed about this! Project supervisors nominated by contractors themselves, what the hell!? We want heads rolling in ADT and also the VAT dept !
joe scerri
Jun 15th 2009, 19:32
Year in, year out we read about these types of things, yet nothing or little is ever done. When are heads going to start to roll including heads of departments and ministers? 0% accountability and 100% incompetency
Tony Caruana
Jun 15th 2009, 19:27
'' In office and In Power''