Updated: Power station tender - E-mail text suggested by Mizzi's employer
The e-mail BWSC's Maltese intermediary Joseph Mizzi had written to the Danish company BWSC on the need to contact someone in the hierarchy had been suggested to him by his employer, he said under oath this evening.
Giving evidence to the Public Accounts Committee, Mr Mizzi said his English was deemed poor by his employer at Associated Supplies Ltd.
The committee is hearing a number of people in connection with the Auditor General's report on the €200 million contract awarded to Danish firm BWSC for the new power station.
The BWSC tender provided for a fuel oil turbine. Its offer cost €165 million, €27 million to convert to gas, and €18 million in maintenance costs over five years. A gas turbine offer by Israeli company Bateman's gas turbine cost €148 million and €35 million in maintenance costs over five years.
Answering questions by Labour MP Evarist Bartolo, Mr Mizzi denied that during the tendering process he had made any presentation to a minister.
In reply to a question by Infrastructure Minister Austin Gatt, he said that he had never met any politician about the tendering process and declared that he had never approached anyone with any monetary offer or otherwise or influenced him in the decisions taken.
Mr Mizzi also declared that he never met Enemalta officials except during official meetings. He affirmed he had no documentation relating to correspondence with BWSC because his computer system had jammed and he had to replace it. He said there was not a lot of correspondence and he did not keep a hard copy.
Although he represented Lahmeyer International on some contracts awarded by the Malta Resources Authority, Mr Mizzi said he did not know that the company had been blacklisted internationally, or that Laymeyer and BWSC had jointly built a power station and that Enemalta had written to Lahmeyer. He only knew that Lahmeyer employed thousands of people.
Mr Mizzi said that as technical adviser to BWSC, he had written an e-mail about Mr Brent Everson who as representative for Barzilla was their competitor. He said that Barzilla wanted to take part in the tendering process but Everson had arrived three minutes after the submission of tenders had closed.
He said that an e-mail from BWSC without the company's letterhead and dealing with technical literature on diesel engines was sent to him because his employer had requested it to explain the matter to a third person.
Mr Mizzi denied any intervention on the changes affected to the 2002 Legal Notice in 2008. BWSC officials did not discuss this with him. He had suggested to BWSC the names of four civil contractors and he had met with Mr Nazzareno Vassallo after they had won the bid.
He told the Public Accounts Committee that as an ASL employee he always dealt with Enemalta contracts. BWSC wanted him to work on the power station tender.
He declared that he never went to the Contracts Department to influence changes in the Legal Notice. Nor did he intervene to change the tender specifications to reflect the amended Legal Notice.
Earlier, former Enemalta chairman Engineer Alex Tranter denied having any conflict of interest in the power station extension tendering process. He said that as soon as he knew that Vassallo Builders were to be involved in the project he had discussed the matter with the Finance Ministry ( then responsible for Enemalta).
He had acted according to the Code of Ethics for Public Service employees and had abstained from the process delegating his duties to the deputy chairman.
Answering questions by Mr Bartolo, Mr Tranter declared that he did not have any conflict of interest because he was employed with Caremalta Limited which did not have anything to do with the construction company whose main shareholder was also Mr Vassallo.
He said he was never involved in the tendering process but was involved in the long generation plan for Enemalta. Decisions on the tendering process were taken by Enemalta committees at different levels. He had appointed these committees in consultation with the ministry.
Investigations on allegations that Enemalta personnel had passed on confidential information were probably made by the Corporation’s CEO because at the time Enemalta did not have an internal audit section. He did not take part in the investigation and could not remember any details.
He had replied to the Auditor General on these allegations because the letter had been sent to him as chairman. Mr Tranter said that Enemalta followed a logging procedure for every individual who called at Enemalta.
Former Enemalta CEO David Spiteri Gingell said that it was impossible for the power station extension to be powered by gas because Enemalta did not have the necessary infrastructure even though this was the original intention. A gas operated station could not be achieved before 2015.
He said that the change to allow the use of diesel over that of gas was made in the Legal Notice in 2005 and there was no contestation about the amendment.
He regretted his mistakes as CEO which included the choice of Lahmeyer International, which was recommended by the MRA. He did not know that they were also BWSC’s agents nor that Mr Mizzi also represented Lahmeyer International.
Mr Spiteri Gingell denied that the BWSC equipment was a prototype saying there already was a similar process elsewhere.
The hearing continues tomorrow.
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Carm Mifsud Bonnici resigns after...
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
'No need for early election if PM's...
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Carm Mifsud Bonnici resigns after...
Joseph Calleja condemns portrayal of...
Second group of migrants arrives
Updated: Labour would give...
CABS drone shot down
Adrian Vassallo in scathing...
39 Comments
Post comment
Please sign in or create your Account to post comments.
charles tabone
Nov 2nd 2011, 13:53
M'huma ser jiswewh xejn l-erba' miljuni kummissjoni lis-Sur Mizzi. B'din id-dimentia kollha u forsi senilita' wasal probabbli biex jiehu kura stretta. Hallina xbin! Jahseb li ahna li nhallsu t-taxxi ahna cwiec. M'hemmx x'taghmel f'Malta kull SANGISUG reddiegh huwa kopert minn gvern korrott. J'Alla jita' PL u jaghmel ligi retro-attiva biex dak li gabar" by hook or by crook" talanqas jaghtina sodisfazzjon dwaru, jekk jghix bizzejjed sal-elezzjoni.
Ktibtlu bil-Malti biex jifhimni peress li huwa stqarr li ma tantx jaf bl-Ingliz. But inti understand the it-tifsira of 4,000,000 Euro, ghorok idejk!
Christian Abdilla
Nov 2nd 2011, 11:50
Vacancy for : BWSC representative for local multi-million euro dealings.
Requirements: Poor standard of English
Careless with correspondence
Must be told what to write in emails
Computer literacy not required
must not carry out background research on prospective employer
Applicants suffering from short or long term memory loss and owning a faulty computer will be given preference.
Enough said...
charles tabone
Nov 2nd 2011, 17:22
A great CV requirement in a portflioio assessed and covered up by a sterile PN government
Paul Salnitro
Nov 2nd 2011, 11:19
The PAC should get the police to seize the "broken" computer (maybe even all his electronic apparatus) and have the hard disks checked out by a forensics team. The correspondence is the critical piece of information needed to determine Mizzi's true intentions.
That way MAYBE we can find out the truth.
I find it appalling that such an important contract was handled by such trash, course he doesn't care he is a millionaire now.
Mr Joe Micallef
Nov 2nd 2011, 11:18
How sad! So at the height of this alleged corruption case the PL told all and sundry that it had scathing irrefutable evidence that would pin Mr. Mizzi and consequently some Minister. Now it seems that this evidence is not available and Bartolo is trying to get it out of Mizzi. Assuming that Mizzi is indeed involved in corrupt practices does the PL honestly think that Mizzi is going to tell the Public Account committee that .
This in turn begs the question, why didn’t the PL go to the Police given that, as it should be, the Police Commissioner has investigative powers far beyond those of the Auditor General and the PAC put together! Maybe the PL has the evidence but it’s keeping it under wraps as an election campaign booster – by which time Mizzi, if involved, would have had all the time in the world to destroy any remaining evidence (wouldn’t that be sheer irresponsibility)!
Alternatively this may be the shape of things to come post 2013. That, back to it’s inglorious dary days, the PL wants to investigate, prosecute and judge – after all Muscat is on record that he will not follow court rulings.
j brincat
Nov 2nd 2011, 10:58
@Joseph Cauchi Senior
"Now that the “suspects” have spoken, the usual members of the D&GB (Doom and Gloom Brigade) are not happy with what they have just heard!"
ONLY those with thick wool (dyed in deep blue) over their eyes would be happy to what they have just heard!
And to which brigade to you pertain? The Charlatans' Brigade , perhaps?
(jb)
Edward Mallia
Nov 2nd 2011, 10:47
There are problems with figures given for the BWSC maintenance costs. For a start they were tailored to the use of HFO; gasoil was ruled out at the start and not as Mepa and Enemalta have fraudulently insisted, at the outcome of the IPPC permit application, which has not yet come about of course! The €18 million maintenance costs for 5 years are too low. If the diesels are operated at full power for 11 months of the year, the maintenance agreement given in the IPPC application would require some €25 million. But once again the comparison with the Bateman figure is pointless, given that the BWSC system makes much better engineering sense than the Bateman one for our grid. The grievous objection is the use of HFO which, generation, collecting, storing and exporting of large quantities of hazardous waste apart, requires twice the maintenance bill of gasoil, according to Enemalta itself.
Joseph Cauchi Senior
Nov 2nd 2011, 10:32
Now that the “suspects” have spoken, the usual members of the D&GB (Doom and Gloom Brigade) are not happy with what they have just heard!
What can you do?
Paċenżja!
They have asked for the PAC to question these “suspects” and once these “suspects” gave their version of events , the same members of the D&GB, who have insisted for this hearing, now have the audacity to cry “Wolf”; and all this is because of what they heard is not to their liking!
I presume that these D&GB members ascribe to that league of “Heads I win, Tails you lose” mentality!
You cannot win all the time, mates!
M’hemmx t’ghamel!
JC.
James Grech
Nov 2nd 2011, 10:55
Don't you at least feel cheated, as a Maltese citizen, by the way that this Mizzi fellow has answered questions to this parliamentary committee? If not then you're either not a Maltese citizen or you do not actually give a damn about how such an important contract was assigned and any other implication from this assignment, including reasons why BWSC was chosen to provide us with a supposedly new plant that works with heavy fuel oil.
PS: usually senior implies also more experience and in-depth thinking capabilities. In your case this does not seem to apply
Alfred Vassallo
Nov 2nd 2011, 11:10
Ghax bhall dak ki qallu kiku kienet bil maqlub u kienet f'zmien l- LP nahseb inti l-ewwel wiehed li ha tkun
daqshekk beccun u tkun ''happy with what you have just heard!!!!!!!!!!!!!!!!. Veru jew mhux veru??
Lil min tafu is-saqsix ghalih.
Paul Micallef
Nov 2nd 2011, 10:19
In 2000 years of christiandom Malta managed to make only one saint. I propose that the 3 persons mentioned above will be recommended for the sainthood while still living.
Alfred Vassallo
Nov 2nd 2011, 10:08
Two words sum it all up:
Manifested Lies.
Brian Gatt
Nov 2nd 2011, 09:48
See No Evil, Hear No Evil and Speak no Evil.
This is the motto of Mizzi and Co.
Dear Mr Mizzi if you think we are stupid please think again, also we are sure that you are far from being stupid considering that you have earned Eur4 million in commissions.
Dont worry the people are judging you and your friends (Klikka or Hbieb tal-Hbieb call them what you want) and the verdict will be issued on the election day.
I hope that the new Goverment will re-open these cases and then we can have some real justice.
Paul Caruana
Nov 2nd 2011, 09:37
Oh well, we all make mistakes....it is just that most of us do not get awarded with handsome commissions for our imperfect actions!
Mr Emmanuel Bonnici
Nov 2nd 2011, 09:25
1. The need to contact someone in the hierarchy had been suggested to him by his employer. Jahasra!
2. Mr Mizzi said his English was deemed poor by his employer at Associated Supplies Ltd. Miskin!
3. Mr Mizzi denied that during the tendering process he had made any presentation to a minister. Jahasra! Kollox wahdu kellu jiddeciedi miskin rigward min kellu jiehdu t-tender ghal-progett daqshekk importanti ghal-pajjiz!
4. His computer system had jammed and he had to replace it. He said there was not a lot of correspondence and he did not keep a hard copy. Miskin. Ma pasarx li l-apparat li ghandu 'state of the art' kien se jtih il-problemi. Il-pc wehel b'tali moghod li gie obsolete u qatt ma hass il-bzonn li jzomm kopja tal-korrespondenza. Xi sfortuna!
5. Everson had arrived three minutes after the submission of tenders had closed. M'hemmx x'tghamel hux, inqabad fit-traffic! Missu haseb kmieni!
Any further comment would be superfluous...
vella m
Nov 2nd 2011, 09:20
WHAT A JOKE !
mario micallef
Nov 2nd 2011, 08:19
What a farce and a tragedy at the same time! These people get rich at taxpayers' expense, while the people living down South get lumped with pollution and disease. I wonder how the Cancer statistics will be for the South in 20 years? But as the health authorities often say 'it will fall into normal statistic rates'. (By the way, this is something that was said to my neighbour who questioned why at least five people living within the same 20 metres all died of Cancer in the same year...something in the water perhaps?)
Edward Mallia
Nov 2nd 2011, 08:18
The meanderings of Joseph Mizzi are those of the typical facciendere -- of the type which grow like weeds across the water to the north. The relevance of evidence under on not under oath is zero. Those of Alex Tranter are not much better, but he was in a better position than Mizzi to wriggle his way out of the mess.
The 'pentito' Spiteri Gingell did not provide much comfort to those who may have to pay for his 'sins', particularly by his parotting the slogan -- admittedly coined by an 'ill-informed Opposition -- that "the BWSC equipment was not a prototype". The continued emphasis on any BWSC - Bateman difference is useless. The BWSC propsal to use 8 X 17.8MW diesel (piston) engines makes excellent engineering sense for our grid; and much more sense than the large Bateman gas (diesel!) turbine. The BWSC GENERATION set up is NOT, repeat NOT, a prototype. A short search on the Net will show that. The 'prototype' tag has been dragged up by THE CHOICE OF FUEL -- HFO instead of gasoil-- and has to do with cleaning up the chimney gases and not with the generating equipment. HFO requires removal of SO2 and NOx, achieved by two different processes; gasoil requires only NOx removal. Now all (other than one? South Korean plant) have NOx removal only. So combined SO2 -- NOx removal is something of a "prototype", no matter what Spiteri Gingell says. Left in the hands of an Enemalta which has not exactly been the forefront of pollution control even in the very recent past, one can understand why people are worried.
Carmel Cilia
Nov 2nd 2011, 08:04
Mr. Mizzi also said under oath that all the correspondence through E.Mails was lost without any copies because his computer went wrong and he changed it. Believe it if you are naive. I don't.
Lawrence Fenech
Nov 2nd 2011, 09:50
The whole BWSC saga stinks from the very start.
J. Scicluna
Nov 2nd 2011, 08:00
The whole thing reminds me of the 1986 Iran-Contra scandal and Oliver North's "I do not recall" and other drivel!
Ms Justice in Malta is toothless, spineless and practically catatonic!
Charles Micallef
Nov 2nd 2011, 07:54
Joe Mizzi should desist from insulting the public intelligence and make such remarks that he got Vassallo Builders details from the yellow pages, as he know exactly who are the friends of friends!
Was a €4M payout not enough for Mr Mizzi to at least respect the nation's intelligence?
Victor Laiviera
Nov 2nd 2011, 09:37
Do you really think that Mizzi kept all of the €4 million (or even most of it) for himself? Do you think that he is finding so many gallant defenders just because they like his face?
Charles Micallef
Nov 2nd 2011, 11:12
@ Victor Laiviera
Agree with you 100% but I was getting to yesterday's evidence which is an insult to our intelligence!
Jonathan Scerri
Nov 2nd 2011, 07:33
For engineering sake, what is a fuel oil turbine?
They are neither turbines, nor is it fuel oil. They are compression ignition engines and the fuel is heavy fuel oil, a whole different cocktail !
Mario Grima
Nov 2nd 2011, 07:10
And the soap opera goes on and the lies get more bolder. The amount of coincidences is unbelievable that they verge on the ridicule.
mario gellel
Nov 2nd 2011, 07:09
And Malta was declared winner of all times. We won the "MOST & BEST LIARS CONTEST IN THE WORLD".
j brincat
Nov 2nd 2011, 07:07
"He affirmed he had no documentation relating to correspondence with BWSC because his computer system had jammed and he had to replace it"
The country of make belief!
What do they take us for?
(jb)
Jonathan Camilleri
Nov 2nd 2011, 06:36
"Former Enemalta CEO David Spiteri Gingell said that it was impossible for the power station extension to be powered by gas because Enemalta did not have the necessary infrastructure even though this was the original intention. A gas operated station could not be achieved before 2015."
It would be good to know whether considering other issues such as the effect on the environment would have affected the expected supply of electricity, as this would add weight on the justifiability of Mr. Spiteri Gingell's position.
Reno Calleja
Nov 2nd 2011, 01:17
I suggest that an award for integrity and honesty should be set up.
I am sure Mr.Mizzi, Mr. Tranter and Mr. Spiteri Gingell would get the Ist, 2nd and 3rd Prize, not necessarily n that order.
I also suggest tha Mr. Mizzi should distribute the 4 million euors commission he was given by the Danish Company among the thousands of victims in the South of Malta who will certainly develop serious the people of the south will suffer for many years to come, because of their dirty wheeling and dealing
I cannot understand how some people could sleep at night when they know of the terrible consequences their wheeling and dealing has broght to the people of the South.
Clayton Bartolo
Nov 1st 2011, 23:44
...remember that anything you say can, and will, be used against you... So all of these goofies have decided not to say anything at all so that nothing can be used against them.
One question: why is Austin Gatt asking the questions? If anything he should be on the other side of the table and answer. This is way too convenient for him...
Philip Bonello
Nov 1st 2011, 23:39
It gets dirtier and dirtier. Also Mr. Mizzi must think us idiots to expect us to believe that he worked on a multi million euro project and has no copy of correspondence, does not remember anything, his computer went bust etc. Alas, it is us who have to pay for it all, and I mean ALL.
C Galea
Nov 1st 2011, 22:56
See where our hard earned money goes .
I am sick and tired of these sort of stories ,Never ,never and I repear never will I believe these kind of answers///
James Grech
Nov 1st 2011, 22:28
this is a mafia style saga. Poor us and the situation which this country has been left to get into.
VINCENT WILLIAMS
Nov 1st 2011, 22:23
For the benefit of our beloved country and for the common good of the PN. GonziPN should resign as soon as possible.
Tony Mangion
Nov 1st 2011, 22:10
Imbierek Alla hadd ma jiftakar xejn. Nahseb li dan hu kollu hela ta' hin
Victor Laiviera
Nov 1st 2011, 21:44
Was Mr Mizzi testifying under oath?
Reinhard Azzopardi
Nov 1st 2011, 23:18
According to the very first paragraph of this article, yes he was. Read before you type!
m. borg
Nov 1st 2011, 23:37
Presumably NO, as the PAC cannot administer oaths.