The Auditor-General has found that fresh allegations by the Opposition on the granting of the tender to BWSC for the building of the power station are unfounded, the government said this evening.

The auditor's second report on the power station extension was handed to the members of the Public Accounts Committee this evening.

The Opposition had requested further investigation by the auditor in view of new information, particularly the fact that some of the bidders had a common parent company. It also complained that some of the sub-contractors had been found guilty of illegal activities which should have been declared inthe tendering process.

The auditor found that the various allegations made by the opposition on the relationship between the various bidders had no bearing on the granting of the tender.

Furthermore, none of the tendering mechanisms empowered the competent authorities to eliminate sub-contractors on the basis of illegal activities and/or professional misconduct.

In his report, the auditor said that: “BWSC’s offer to EMC, which offer ended up as the successful bid and as such the basis of the contract being executed, uses Warsila diesel engines, and not MAN’s.” 

With regard to potential conflicts of interest, the auditor general reiterated the view made in the first report that the chairman of Enemalta, Alex Tranter, should have stepped down because of his employment with one of the sub-contractors.

In today's report, the auditor says Mr Tranter failed to avoid any actual, perceived or potential conflict of interest.

SERIOUS SHORTCOMINGS CONFIRMED - PL 

The PL in a statement said the auditor-genral had remarked that it was a serious shortcoming that the contract conditions were drawn up in a way which made it impossible for the authorities to stop BWSC from having as sub-contractors companies such as Siemens, Pauwels, ABB and Wartsila which, it said, had all been found guilty abroad of having bribed ministers or government officials in order to win contracts.

The report had also confirmed that in working in the same legal office which had represented Enemalta for 20 years was a lawyer who represented BWSC. 

 The report had confirmed that the then Enemalta chairman should have resigned immediately as he was an employee of sub-contractor Zaren Vassallo. 

It was also confirmed that legal, technical and administrative changes during the course of the tendering process including the decision to go for heavy fuel oil instead of gas, had contributed for BWSC to win the contract rather than having the company eliminated, had things been done well, the PL said. 

NEW 'SCANDAL'

It had also emerged in parliament this evening, the PL said, that Enemalta had still not signed a maintenance agreement with BWSC.

The party pointed out that two years had elapsed since BWSC was granted the contract for the power station extension when it quoted a price tag of €18 million for maintenance, a cheaper offer than other bidders which were considered more realistic. This meant, the PL said, that the maintenance contract would now cost more than €18 million . The auditor had confirmed that the maintenance contract should have been signed when the contract for the power station extension was granted, the PL said.

See full report by clicking pdf below.