Government seeks clearance to release Delimara contract
Auditor General had copy of contract
Enemalta has been instructed to ask Danish company BWSC for permission to publish the €165 million power station extension contract signed last year.
In a letter, Enemalta asked BWSC for "written consent" to release the government from a confidentiality clause to be able to make public the controversial contract.
"The government holds the strong view that it is in the country's best interest that the contract is made available for public scrutiny, with immediate effect," Enemalta CEO Karl Camilleri wrote.
The letter was sent on Wednesday on Finance Minister Tonio Fenech's instructions. Only last week, he refused to give in to a request by the opposition in Parliament to table the contract, insisting it was of a "confidential nature".
But in comments to The Times, Prime Minister Lawrence Gonzi said on Wednesday he had no objection to releasing the contract as long as BWSC agreed.
The contract was criticised by the Auditor General in a recent report on the tendering process that led to the BWSC being chosen for the extension contract. Among other things, the Auditor said the contract, signed behind closed doors last year, was drawn up hastily, to the extent it had track changes still visible.
In a statement, issued with a copy of the letter yesterday, the Finance Ministry said publishing the contract would remove unfounded allegations by the opposition that was more interested in obstructing rather than working for the country's good.
The Auditor General found no hard evidence of corruption but highlighted serious administrative shortcomings in the tendering process.
Public Affairs Committee chairman Charles Mangion has said he would ask for a copy of the contract when the House committee started debating the Auditor's report.
The Finance Ministry pointed out yesterday the Auditor General had a copy of the contract during his investigations. "Since it was given to the Auditor General, the government has no problem to publish this contract."
The opposition never presented any evidence of corruption in the tendering process before the Public Affairs Committee or to the Auditor General, even though it made such claims for months, the ministry said.
Publishing the contract would also disprove claims by Opposition Leader Joseph Muscat of a €300 million fine if the contract was released.
The contract was for the supply of a 144-megawatt diesel power plant at the Delimara power station for a value of €165 million. An outline proposal for spare parts and a technical support agreement was included in the contract for an additional amount of €18 million.
Efforts to contact BWSC proved unsuccessful.
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Carmel Cilia
May 1st 2010, 08:30
Can any maltese person with a sane mind accept the prime minister's position wherein he said that he did not see this contract of over 200million. Well I can quite believe him in that he was busy not minding our nation's interest but trying to calm the water in his party.
As for what mr. I Cilia said about not having torture imposed on Mr. Mizzi for refusing to remember can this gentleman ask in secret his favourite party member whether it was true that mr mizzi got 4 million euros out of this affair. He should then sit quietly in a corner and try and make out how much money he made through a lifetimg of working. Then he cancome to the conclusions most of the maltese have done and say: Yes it looks quite evident that corruption was in force in this whole contract. Remember the famous cry by some politician that'he who does not fight corruption is himself more than corrupt.
R.Lewis
Apr 30th 2010, 19:22
The Hon.Dr.Lawrence Gonzi said that he didn't see the Delimara Power Station extension contract before it was signed. Fair enough it is impossible for the Prime Minister to go into each negotiation in detail himself, that's why he appointed Ministers and Parliamentary Secretaries and that's why they are paid from the taxpayers money. Dr.L. Gonzi also said that the contract was analysed by Enemalta lawyers prior to it being signed. Therefore it would be interesting for the Government or EneMalta to publish the names of the lawyers who analyzed the contract prior to the signing, so that all these bloggers can evaluate the competence of such lawyers, and whether any of them is involved in the political scene.
Patrick Zahra
Apr 30th 2010, 18:11
The auditor General highlighted eight irregularitie all of which favour the BWSC plant vis a vis the other bidders! How can this be interpreted as coincidental? besides wether there was corruption or not is irrelevant, what is relevant is the fact that enemalta went for a plant which will be used fot the very first time in Malta ( though tender was clearly for tried and tested technology) and which at best will have emissions 40% higher than if diesel was used for fuel and will also generate 15 containers of very dangerous toxic waste daily! Why should we expose our children to a greater risk of cancer and lung disease when this could easily have been avoided with a little more competence on the part of those involved in decision making!
J Brincat
Apr 30th 2010, 18:09
@Joseph Cauchi If you are happy then, for all intents and purposes, everybody is. Keep living in your imaginery world!
Joseph Cauchi
Apr 30th 2010, 17:34
The more I read the comments from the Doom & Gloom Brigade, the more I am convinced that their biggest wish in this entire saga is that some sort of IMAGINARY corruption be unearthed and exposed; thus satisfying their political cravings.
The more I read the more I am convinced that all this will be WISHFUL THINKING!
Keep dreaming, who knows that perhaps one day dreams can come true!
JC.
james grech
Apr 30th 2010, 18:21
Why do you keep on rumbling about the corruption issue? If you're content that the party you so heartily support was inconclusively found to not having corroborated any, then it's your opinion, your decision. However, don't try to twist the facts Mr. Cauchi. It has become the job of many a seemingly tom, dick and harry to come all out in support of Gov and twist facts against the opposition. Let me remind you, that the issue at hand is of national importance and everyone must ensure that the right decisions are made. In particular a high majority of Maltese are appalled by several aspects of this contract, especially those highlighted by the AG's report, which I suggest that you read through. People are concerned by the way that money is being spent, by the technology chosen, by the waste that will be generated, by the money that will cost us to get rid of this waste etc etc. The more you try to defend the indefensible, by twisting the facts, the more puerile your effort becomes. Silence is golden!!
E Gatt
Apr 30th 2010, 18:51
Well said. The new extension will also mean more cost effective electricity production and Malta avoiding penalties if our EU/International obligations are not met. The longer the power station extension takes to be completed, the greater the risk of more frequent power cuts. The greater the number of power cuts, the more people will grumble (and rightly so). The more people grumble, the greater the risk of them voting Partit tal-Le.
Victor Vella
Apr 30th 2010, 17:08
It is important for the government to understand that he is there with the votes of the people. Tomorrow this same government can end up in the bin. THE GOVERNMENT IS THERE TO BUILD RELATIONSHIPS AND BRIDGES WITH THE PEOPLE AND DO NOT TRY TO THINK THAT IT IS THERE TO BE THE OMNISCENT OR HOLDING ANY DOGMA COMING TO HIM FROM ABOVE. The arrogance of this government is rampant and every Maltese who pays tax has the right (dritt) to know what, how and where the government is spending the monies of the Maltese people. They are the money of the Maltese people and not of Mr Gonzi and his regime. Where is transparency? Where are the rights that this same government did not left any stone unturned in the dark ages of the late seventies? What the govrenment is doing is because we do not have a strong opposition which is important to any democratic country. If we have a strong opposition this government would have put an end to such arrogance which day by day is increasing in its volume. Every move that the government does it is in the interest of everybody to know. In Parlament.
J Brincat
Apr 30th 2010, 15:49
So the charade goes on and on.
But only a poice investigation would put our minds at rest.
james grech
Apr 30th 2010, 15:36
With regards to the haste in signing the contract, there is another option which the so called gloomers and doomers are forgetting. So when Gov opened St. George's square ppl said that there was squandering of money, same was said about the opening of a public service convenience in Valletta. Gov. at this point decided to go ahead and do without the usual pomp. In this way Gov succeeded to save thousands of euros. There you have it, always trying to make a mountain out of a mole....this seems to fit perfectly well..no?
It would in fact have been a truthful scenario had Gov. not decided to try to brainwash ppl into accepting this fantastic solution proposed by BWSC, by starting a fishy advertising campaign. By the look of some comments below, it seems that this campaign is already having some of the desired effects on the likes of Mr Grima, Pace and Abela. Or maybe these blogges are being paid (as part of this campaign) to write such nonesense?
james grech
Apr 30th 2010, 15:57
Oh, and I forgot to include Mr i.cilia in the previous list. His comments are so inspiring, I could cry.
g.c.Forte
Apr 30th 2010, 16:11
TAL BIKI, jew TAD DAHQ ?
James Grima
Apr 30th 2010, 12:47
@ Joey Muscat and AG:
You have only one option, and it is to resign!!!
g.c.Forte
Apr 30th 2010, 13:39
James Grima..........Taf min ghandu jirrizenja ? Min ma kellux id dicenza li jaqra x`fih il kuntratt. Min ipprova ibengilha u jghejd li ghandu avukati, periti, nutara,u konsulenti sabiex jaraw dawn l-affarijiet, jigifieri kollha kemm huma ( tmellhu bih ) jew hallewh fl`ghama. Taf min ghandu jirizenja ukoll ? Min dahhal il miljuni f`kommixin u nesa kollox x`gara. Taf min ghandu jirrizenja ukoll ? Min l`ewwel ghazel il kumitat li rid hu u wara warrab. Taf min ghandu jirrizenja ukoll ? Il ministri, Austi Gatt, u Tonio Fenech, wiehed li beda dan it tahwid kollu u l-iehor ghax qeghed ikompli. Fl`ahhar taf min ghandu jirrezenja ? Iva Int ghax qeghed titkellem b`rasek fir ramel. L`anqas taf x`qeghed jigri.
Anthony Formosa
Apr 30th 2010, 14:28
Mela Sur Grima ghidilhom li Joey Muscat u l'AG must resign ASAP, halli when the cat is away the mouse will play, and the poplu ta gahan will pay.
R. D'Emanuele
Apr 30th 2010, 16:05
@James Grima, The best answer to anger is SILENCE!!!
T. Pace
Apr 30th 2010, 12:01
No proof has been submitted by the Labour Party or found after a lengthy and detailed investigation by the Auditor General.
Indeed, had there been corruption, the tender specifications would have been tailor made for BWSC and not made it even more difficult for it to compete.
On the other hand, the Israeli company's offer was, I understand, the only offer that complied with the specifications perfectly (apart from the additional substantial costs of installing a pipeline to Algeria and having to be reliant on one supplier). Coupled with the fact that details of BWSC's offer were leaked, one might be inclined to think that an investigation in respect of this offer is called for.
lgalea
Apr 30th 2010, 12:56
Is changing the law to make it easier for BWSC to get the contract by making possible worse emissions than previously not enough evidence of CORRUPTION?
g.c.Forte
Apr 30th 2010, 14:18
T.Pace.......The whole story turns on three simple questions, that Cikku il poplu wants to know, and not twisting and turning with stupid arguments. A. If B.W.S.C. had nothing to hide, why did used the " NO COMMENT " argument with the A.G. while doing the inquiring, when everybody knows that the A.G. is binding not to say what he hears in an inquiring, like when going to tell your sins to a priest. B. Why the major and most important witness Mizzi, did not gave his out most to say the truth and forget nearly everything, at the inquiring. C. After the negotiating has been finalized, so there were no conflicts of interests, why the government did not splash this sensational deal on the media, considering that when opening a playground, even the dead will knows, with the huge propaganda this government is famous in doing.
d.attard
Apr 30th 2010, 11:43
Government must do away with spin on this singular issue that questions quality of governance.
I feel that this tie round, government's bluff will be called at its stance that anyone seeking explanations are some sort of opposition having the intention to disrupt Government action.
The tabling of the contract is only a next step to get to the bottom of remarks by the NAO in the sense that it was not aware of the reasons for a shift i the Corporation's position, the fact being that the agreement as eventually signed, ended up being more favourable to the contractor at the detrient of enemalta ad ultimately to the Maltese taxpayer.
Trying to contract the contract into some single peripherial issue is, in my opinion, a strategy how to deflect attention from the many elements that make up the whole case.
Karl Abela
Apr 30th 2010, 11:29
We are still waiting for labour to prove the alleged corruption. It would be very good indeed if they can prove it as that would send a positive message about labour fighting corruption.
My gut feeling, however, is that it is yet another unfounded and hastily thought out allegation by labour. However, that there were administrative shortcomings wouldnt surprise me at all, infact it is quite the norm with certain public sector employees.
lgalea
Apr 30th 2010, 12:51
Karl Abela How about asking the Prime Minister to order a MAGISTERIAL inquiry to investigate all the issue so that people who forget would be sent to the cooler to remember? As long as a Magisterial inquiry is not made and the contract stopped all the people have a RIGHT to think that there was CORRUPTION otherwise why all this effort to hide evrything from the people and their parliamentary representatives?
i.cilia
Apr 30th 2010, 15:11
tajba galea,
mela you think we are living in socialist Cuba jew...
what do you want to do to Mizzi?? torture him till he remembers jew?
mela hsibtna ghadna fis 70's u 80's..
Joe Cassar
Apr 30th 2010, 16:43
@ Mr I. Cilia
If a judge feels that a witness is being uncooperative by pretending to have "lost his memory", the judge has the power to order that the witness be detained untill his or her memory "improves".
R. D'Emanuele
Apr 30th 2010, 10:56
Dr. Fenech,
Why we have to ask for permission from a foreigner to view the contract paid with our money? I have very little hope that permission can be gained. It is often easier to ask for forgiveness than to ask for permission.
Success does not intend to mean in never making mistakes but in never repeating the same one and remember, that forgetting your mistakes is a terrible error if you are trying to improve your way of thinking.
Maltese Citizens, Things go wrong so that you appreciate them when they are right.
Eric Gahn
Apr 30th 2010, 10:31
Who is running this country? BWSC or the Government? Is this part of the 'Flimkien Kollox Possibli' ploy except that 'Flimkien' excludes the Maltese people? (Not that the last part is a surprise anymore).
Lawrence Fenech
Apr 30th 2010, 10:22
Kemm ser iddumu iz-zeffnu lill-opposizzjoni u lill-Joseph fin-nofs. Hadd ma ivvinta xejn li ma kienx iddijarat mill-awditur. Ara min ma qrax ma jistax jikkumenta ahseb u ara li imeri.
james grech
Apr 30th 2010, 09:58
There seems to be no limit to Minsiter's Fenech arrogance. As reported by the media at large, it was Minister Gatt who first mentioned the E300M penalty that will be incurred by Malta should the contract be terminated. Why didn't he say that the penalty was not actually tied with the contract per se but was the result of the effects in case we do not solve the energy generation issues, including the closure of Marsa Power station and the rental of other generators? Is it a case of Gov. not knowing what its left and right hands are doing? This gratuitous confusion does no benefit for the stability of our country.
E Gatt
Apr 30th 2010, 09:49
Labour’s Business Forum remain sitting on the fence in this debate.
It would be interesting for the business community if they would share their thoughts on calls to disregard a confidentiality clause in a business contract.
lgalea
Apr 30th 2010, 12:55
There should NOT be any confidentiality clause in such a contract because it is NOT Gonzi or Agostino Pio that are paying but the PEOPLE of Malta who have a right to know what they are paying for. If BWSC prevents the contract from being made public it confirms that there was CORRUPTION AND THAT IT HAS A LOT TO HIDE. This is the trademark of BWSC around the world in every contract that it contracted. Do a google search and you will know.
E Gatt
Apr 30th 2010, 13:35
@Igalea
Although your reasoning is representative of a sizeable sector of the Labour core support, I hope for the county’s and for your party’s sake that you are not a member of Labour’s Business Forum.