GWU publishes Sammy Meilaq's corruption claims on Fairmount contracts
The Fairmont Fjord, converted at Malta Shipyards.
The GWU has protested to the Commission for the Investigation of Corruption that a year after it requested an investigation into the granting of the two Fairmount ship conversion contracts by Malta Shipyards, it had still not been invited to give evidence.
The union this afternoon published a letter by its General Secretary, Tony Zarb, to commission chairman Albert Manche' where Mr Zarb said he was sure that the evidence by the union's officials would be useful in the commission's investigation.
The union also published a sworn declaration sent to the commission last November by Sammy Meilaq, the former chairman of Malta Drydocks.
In his statement, Mr Meilaq said that against all practice and logic, Malta Shipyards had sidelined its professional management in the drawing up of the quotation for the conversion work and instead engaged an individual, Mr Couser, who produced a quotation which was drastically lower than what the management had been preparing. That had been seriously detrimental to the shipyard.
After some time, the dockyard inexplicably freed Mr Couser of all contractual links and obligations with it, making it easier for him to 'escape from Malta'.
The dockyard had also accepted penalties on liquidated damages, thus going against all normal practice for contracts of this type.
Mr Meilaq said the dockyard had awarded sub-contracts worth several million euros without a call for tenders or quotations, without documentation and evaluation. The sub-contracts were awarded at a much higher price than the dockyard was to receive as payment from the client, when it could have done otherwise.
Mr Meilaq said the dockyard had not taken legal advice on the terms of the contract, as used to be done for major contracts in the past.
It had also ordered management to 'alter' documentation on costs so that the expenditure was shown to have been made on other works.
The dockyard also knowingly gave false information to the GWU on the main contract terms including the price, sub-contracting costs and purchase of equipment.
In the accounts, the dockyard recorded a cost of €1,245,000 in training, when this was not the case.
It also transferred funds to a contractor who, it knew, was about to go bankrupt and when it knew it was not obliged to transfer this money. Instead the shipyard could have taken action to protect its interests.
Mr Meilaq said these facts showed that this contract was drawn up and executed in a way which harmed the dockyard and this could not have been accidental. Rather this was done in a considered manner, and constituted corruption.
The commission, he said, should investigate who had been responsible for these things, and who had allowed them since this all involved corruption.
The GWU said in the past that the Fairmount contracts had cost the dockyard losses of some €30 million.
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C Briffa
Oct 25th 2011, 21:59
The only problem that when he was chairman the dockyard always worked at loss so can he give an explantion? Was there any corruption involved or what else?
Like when they took out a ship which was being repaired, to block the port.
Willie Grech
Oct 25th 2011, 21:56
U issa Dr. Franco Debono x'ser naghmlu? Nastjenu fuq din ukoll?
Anthony Farrugia
Oct 25th 2011, 21:31
When is Mr Sammy Meilaq going to assume his onerous responsibilities in the role he played when on the Council of Administration of Malta Dry Docks and which led to the debacle and closure of the MDD ?
Some people conveniently forget the millions of LM poured into the black hole that was the drydocks and for which no account was ever given to the taxpayer who forked out these millions.
jacqueline chircop
Oct 25th 2011, 20:51
Dear Mr or Ms M.Mammo,
as a matter of fact, i care what Mr Meilaq has to say.....
best regards
jacqueline chircop
FRANS H SAID
Oct 25th 2011, 20:42
What corruption? Has the commission ever found against the govt? In fact has the commission ever found in favour of somebody who was deemed to be an embarrasment to certain people? The commission is all wrong, but after all this is Malta when certain actions are taken not to achieve results but to keep the people quiet.
How many cases are still pending/ How many cases were shelved?
But this is not in the public interest to know!
Mr Michael Debono
Oct 26th 2011, 10:48
Why write about the Commission. Has not the Commission have a head who always found nothing wrong in government dealings.
Reno Calleja
Oct 25th 2011, 19:34
yet another flop by Minister Austin Gatt.
Remember that the the Dockyard lost tens millions of Ejuros on this cotnract which enforced the Minister's hand to close the Yard.
The revelations by Mr.Meilaq leave no doubt that their was a deliberate attempt to allow corruption, and theft of millions of euros from the Maltese taxpayer.
It is disgracful thast the Police never investigated this case and that an international arrest warrent was never issued against Mr. Couser. Where is he now. Perhaps basking in the sun in the Bahamas enjoying his bounty
Who knows. Maybe they lallowed him to leave Malta because he threatened to bring others down with him if he was accused of corruption.
For this scandal alone the Prime Minister should have sacked Minister Gatt.
Vince Cachia
Oct 25th 2011, 17:27
That was the last blow below the belt, purposely tailored to close Malta Drydocks!!
john muscat
Oct 25th 2011, 18:24
Nothing more than the absolute truth. everything was premeditated by the government to shut down the yard!!
Ivan Cutajar
Oct 25th 2011, 17:02
Ukraine place Ex Prime Minister in 7 years Jail sentence for make Ukraine lose 130 Million USD and now who is going to take the responsibility for the lose of this Contract? GONZI
Godfrey Camilleri
Oct 25th 2011, 17:02
This contract was stinking all the way so that it is really a shame that the investigation is not completed after a whole year and all the witnesses have not been heard. Citizens have the right to know how these monies were squandered and who pocketed them. The longer it takes to find the truth, the more we lose trust in the people responsible for this debacle.
M Mamo
Oct 25th 2011, 16:51
Sammy Meilaq ... enough said! wonder how some still care about him...
Vince Cachia
Oct 25th 2011, 17:28
If it was not for gentlemen like Sammy such stories would have never surfaced!!!
Wally Vella-Zarb
Oct 25th 2011, 17:37
M.Mamo, nineteen years old ... enough said!
Michael Magri
Oct 25th 2011, 17:38
M. Mamo..
THIS TIME IT IS NOT `ABOUT HIM`,(Mr. Meilaq ex dockyard chairman as such), BUT ABOUT WHAT HE IS SAYING.. SOMETHING VERY, VERY, VERY SERIOUS........!!!!
DON`T YOU THINK SO....!!!!!!!!!
Michael Grech
Oct 25th 2011, 19:47
If you lack arguments...you insult the person
R. Gauci
Oct 25th 2011, 16:44
Din nahseb aktar fl-interess nazzjonali mill-emails ta` Joseph Muscat lil Sabrina Agius, nahseb ta!!
FRANS H SAID
Oct 25th 2011, 20:38
Both have got their importance!
victor caruana
Oct 25th 2011, 16:33
Sammy should persevere until a time when all those involved are behind bars. Any missing files will send behind bars those who are responsible for their safekeeping...including the Commission for investigating Corruption....
George Azzopardi
Oct 25th 2011, 16:23
oops!!!
silvio loporto
Oct 25th 2011, 16:17
So now what? back to the drawing board.
Knowing how things go in Malta,very few or no one will collaborate the above,in fear of being themselves put in a bad light and so the matter will go on and on and we pay for other people's greed.
Charles Micallef
Oct 25th 2011, 16:09
Very fishy and as usaul one wonders who should one believe?????
Joseph Hollier
Oct 25th 2011, 17:20
That is why Mr. Manche' should conclude the investigations.