A company that recycles waste oils in Marsa was caught by environmental inspectors illegally discharging oil-contaminated wastewater into the sewage system, according to the planning authority.

The Malta Environment and Planning Authority confirmed its inspectors had discovered the illegality at Falzon Group's Waste Oils Co. Ltd while investigating possible sources for the bad odours around the Hexagon House area in Marsa.

"An inspection was carried out by Mepa's environment officials at installations in and around the Hexagon House/Timber Wharf area.

"During the inspection at Waste Oils Co. Ltd it was found that the company was discharging oil-contaminated wastewater into the sewage system," a spokesman for Mepa said.

However, a company spokesman yesterday denied it was ever caught by Mepa discharging oil-contaminated waste into the sewers.

The only incident involving the company, she said, occurred when during an inspection by Water Services Corporation it was discovered that the company had an irregular connection to the main sewage system and this was immediately closed.

"This all took place over a year ago and we were never advised by any authority that this issue was ever connected to any bad odours. The company has never been caught discharging oil-contaminated waste water into the sewage system by Mepa," she insisted.

Earlier this month, Prime Minister Lawrence Gonzi told Parliament that Mepa had asked the WSC to start action against a company in Marsa that was illegally discharging its waste into the sewage system. He did not mention the company by name despite being asked to do so by Labour environment spokesman Leo Brincat.

Last year, Mepa's own offices at Hexagon House had to be evacuated after foul smells enveloped the building. One staff member was kept overnight in hospital under observation.

Mepa had confirmed that the pungent odour was hydrogen sulphide gas that had seeped back into the drainage system of the building from the public sewage.

The area is notorious for foul smells that occasionally contaminate the air and the problem has been ongoing for years.

Waste Oils is situated in Spencer Hill and it collects waste oils, bilge water and ballast from all sectors of the marine industry, for eventual recycling.

The company has not yet been issued with an environmental permit (IPPC - Integrated Pollution Prevention and Control) from Mepa despite having submitted an application in July 2008.

The permit would contain strict pollution control measures and conditions the company would have to adhere to. Heavy industry in Malta is gradually having to come in line with EU rules by obtaining the IPPC.

According to Mepa, the delay was linked to "certain operational issues, which required modification" before the permit was granted.

The problems were identified after a public consultation process was held between March 13 and April 13 last year.

"The recycling operations as conducted by Waste Oils Company Ltd did not fully conform with required standards, hence the delay," the authority's spokesman said when asked whether the company's recycling operations fell within EU parameters of waste oil recycling.

Asked about the IPPC permit delay, the company spokesman insisted the problem was one of interpretation.

"Waste Oils has not yet been issued with an IPPC permit due to certain company proposals not being deemed to conform to Mepa's own interpretation of the relative EU IPPC legislation," she said, pointing out that IPPC legislation was "continuously evolving and sometimes developed faster than available technology".

The company has recently submitted a revised IPPC application, which, according to the spokesman, was "being favourably considered".

"In the meantime, the company has continued to invest heavily in the research and development of various new technologies to further improve its operations," she added.

On Monday, Labour MP Leo Brincat identified the company as the source of the pungent smells that occasionally plagued Marsa and accused Waste Oils of illegally discharging material through sewers and culverts.

The company later denied the allegations, insisting it had always collaborated with Mepa and had "to date not been notified of any conclusions reached by Mepa that the installation was the source of any noxious odours".

The spokesman had also defended the company's environmental track record, describing it as a major contributor to the protection of the environment.

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