Olmert's purpose was to warn Gonzi - Israeli newspaper

Israeli newspaper Haaretz said today that former Israeli Prime Minister Ehud Olmert had tried to talk to Prime Minister Lawrence Gonzi about the power station extension contract "to warn the Maltese prime minister of irregularities in the tender process by the Danish company".

The contract was awarded to Danish company BWSC, which came ahead of MANN and Israeli company Bateman in the tendering process.

Infrastructure Minister Austin Gatt last week complained of improper pressure by the Israeli ambassador and Mr Olmert for the contract to be awarded to Bateman.

The Israeli newspaper said the selection of BWSC over Bateman was 'puzzling' since the Israeli company's bid was €40 million cheaper. (Austin Gatt has repeatedly pointed out that according to the Auditor-General, the BWSC bid was the 'cheapest by far')

A senior Israeli Foreign Ministry source told the Israeli newspaper that the suspicions of irregularities arose when Bateman accused the Danish firm of using inside information and of applying political and personal pressure on various officials in the Maltese government, including Infrastructure Minister Austin Gatt.

But in his testimony to the Public Accounts Committee last week, Dr Gatt countered by hurling accusations of improper pressure at both Olmert and Gideon Meir, the Israeli ambassador.

Haaretz said it had confirmed that Olmert tried to phone Dr Gonzi and the Maltese PM refused to accept the call. But Olmert stressed at the time that he was calling as a private citizen and not as the former prime minister - a detail Gatt omitted from his testimony, the newspaper adds.

Olmert's office refused to comment on the allegations, saying it did not discuss his business affairs. But a source who was involved in the issue back when the phone call in question was made told the newspaper that Olmert had sought to warn the Maltese prime minister of irregularities in the tender process by the Danish company.

Yariv Ovadia, spokesman of the Israeli Embassy in Rome, in comments also previously given to The Times, said: "it would be best if those who need to explain the strange results of the tender focus on that issue and avoid involving Israel."

"The Israeli ambassador acted appropriately, in the context of his job, to promote economic relations between Israel and Malta, and the claims that he threatened the Maltese prime minister are baseless," Ovadia added.

Bateman said in a statement that it "completely rejects" Gatt's accusations. The company complied fully with the tender instructions, it said, and did not apply any illegal pressure whatsoever, political or otherwise, during the bidding process.