Advert

RJs’ inquiry was never concluded

The beleaguered RJ70.

The beleaguered RJ70.

An inquiry ordered by Air Malta’s board of directors in 1997 into the purchase of the beleaguered RJ70s’ fleet was never concluded, The Sunday Times has learnt.

Former Judge Godwin Muscat Azzopardi, who was entrusted with the inquiry, confirmed he had never completed the investigation assigned to him in March 1997 as “something had happened in the meantime”.

The purchase of the Avro RJs left Air Malta with millions of euros in losses. The decision is often described as one of the national airline’s biggest strategic errors.

The inquiry was meant to establish the identity of management officials who had omitted a crucial guarantee in the purchase of the RJs fleet, which would have significantly diluted Air Malta’s risk.

The issue was revived a few weeks ago by Richard Cachia Caruana – a former member of Air Malta’s Board of Directors.

Judge Muscat Azzopardi confirmed, when asked, that someone from Air Malta had instructed him to stop this inquiry but said he could not remember his identity and why.

“I had received a notification to do this inquiry, but something had happened in the meantime and the inquiry was never concluded.

“So much time has passed since then and I don’t recall why the inquiry wasn’t concluded,” Judge Muscat Azzopardi said when contacted.

After former Nationalist MP Jeffrey Pullicino Orlando levelled accusations at Mr Cachia Caruana of colluding with the 1996 Labour government, former Labour Minister Karmenu Vella had issued a declaration aimed at substantiating the MP’s claims stating that Mr Cachia Caruana had met him and told him he disagreed with the purchase of the RJs and the establishment of Azzura Air – an Air Malta subsidiary.

Denying these accusations, Mr Cachia Caruana challenged the former Labour minister responsible for Air Malta to publish the conclusions of the inquiry order by the board to establish who had omitted the crucial trip-cost guarantees.

The board was replaced

The Air Malta board, which took the decision to start the Muscat Azzopardi inquiry on March 5, 1997, was replaced just two days later when a Labour government appointed a set of new directors, with Louis Grech as the new chairman of the company and Michael Falzon – then a party official – on the company’s board.

Contacted by this newspaper, Frans Camilleri – then one of the top management officials of the company involved in the negotiations for the purchase of the Avro jets – said he had never seen the inquiry mentioned by Mr Cachia Caruana and was never summoned to appear before the board.

He insisted that he had opposed the purchase of the RJs and had made a written declaration stating his position to the then chairman Mr Grech.

The RJs’ saga

1992. Air Malta takes a strategic decision to develop a hub concept. This included a 35 per cent increase in scheduled regional routes by 1997.

1993. Air Malta purchases four Avro RJ70s from British Aerospace while discarding a proposal to buy Fokker regional jets instead. Fokker folds in 1997.

1994 to 1995. Air Malta receives four Avro RJ70s and puts them into service.

1995. Air Malta takes up 49 per cent share in Azzurra Air – a new regional airline based in Italy together with Italian investors.

May 1996. Air Malta buys three Avro RJ85s from British Aerospace and leases them to Azzura Air.

October 1996. Labour is returned to government.

December 1996. Azzurra Air starts operations.

1997. Air Malta leases RJ70s to Azzurra Air.

March 5, 1997. Air Malta’s Board of Directors orders inquiry to establish who from the management was responsible for omitting trip-cost guarantees when the four RJ70s were purchased.

March 7, 1997. Government appoints a new Air Malta board – Louis Grech appointed chairman.

2003. Lease agreement of RJs fleet with Azzurra Air terminated. Aircraft returned to Air Malta and sold.

Advert

73 Comments

Post comment

Please see our new Comments Policy

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

For more details please see our Comments Policy

Your User Profile is incomplete.
Please click here to complete your profile before posting comments.

Anthony Paris

Aug 5th 2012, 20:35

Then the learned gentlemen should have said so, instead of giving a lame excuse, or at worst telling a lie.

ANTHONY PAVIA

Aug 5th 2012, 18:47

Frans Camilleri has already provided a tremendous amount of factual detail. All one need use further is his brain power.

Ronnie Callus

Aug 5th 2012, 18:08

@ Jimmy Magro:
Nisperaw li l-Minutes fil-Files jinstabu !! ghax forsi jista jkun li diga inharqu bhalma darba kien gara fi zmien il-Ministru Carmelo Caruana fis-sittinijiet jew bidu tas-sebejnijiet fil-5 distrett.

Jimmy Magro

Aug 5th 2012, 18:47

A new PL government should look forward to creat the best environment for the public sector to invest in Malta, ceretae wealth and jobs, and see to it that it is distributed fairly.

There is no time to waste on past adventures as nobody will be giving any evidence to open the doors to Corradino. In Malta and other countries there is the omerta and it is impossible to send anyone to prison in such a closed, infiltrated and networked society.

A government is there to ensure prsperty for the many and not for the few. Dealing with the past will not create any wealth, rather we will be spending money down the drain.

Let us look forward to a modern country where we live under the same sun; bringing all the forces together to create wealth, make Malta unique, and ensue that all valid persons participate in these challenges.

We have to build a coalition of all colours of the rainbow as we are too small to use only 50% of the population as what has happened during the last 25 years.

ANTHONY PAVIA

Aug 6th 2012, 08:00

Jimmy, I am sure you mean the private sector, don't you?

m. borg (slm)

Aug 5th 2012, 17:13

"Why would RCC ask Karmenu Vella to make public the findings of the INquiry?"


Exactly why would he (RCC) ?

That is why I wrote : Being stupid (of the facts) is one thing but acting stupid is totally unacceptable."

Sorry for the repeat

Joe Vella

Aug 5th 2012, 14:46

@ jb Brincat;

"Let's say, just for argument's sake, that it is as you say. What kept the chairmen with successive boards of directors (paid out of taxpayers' money) which were hand chosen by the PN after 1998 to continue with the investigation?"

Why ask successive Boards of Directors? Why not ask Louis Grech, PL, MEP who was the Chairman of the Board of Directors the Inquiry was Cancelled:

Why Not ask Michael Falzon, PL, MP, who was on the Board of Directors when the Inquiry was Cancelled?

Why not ask Karmenu Vella,whom I assume was the MInister responsible for Air Malta,when the Inquiry was Cancelled?

Why not ask Alfred Sant himself, whom ultimately was responsible of appointing the Board of Directors that cancelled the INquiry>

R. Cilia

Aug 5th 2012, 15:13

Joe Vella please quote the article where it says that the new board cancelled the inquiry!

Joe Vella

Aug 5th 2012, 14:49

J. Scicluna, no body is implying anything. The facts are quite clear based on the above article. The fact is that the newly appointed Boar of Directors, appointed by none other then Alfred Sant, cancelled the Inquiry only 2 days after it was appointed.





Joe Vella

Aug 5th 2012, 14:55

R. Cilia; who ever it was from Air Malta that stopped the INquiry is not so important. Who ever it was could not have done so without the blessing and instruction from the newly appointed Board of Director. We all know that the Board of Directors was appointed by the Alfred Sant Government, and the Chairman of the Board wan none other then |LOuis Grech, PL, MEP and that Micheal Falzon, PL, MP sat on the Board as well.

R. Cilia

Aug 5th 2012, 22:13

Joe Vella, if what you are saying is true, then why didn't the PN open the enquiry again, when they were in government? My guess is that both parties had a finger in the pie.

J. Scicluna

Aug 5th 2012, 14:52

PERHAPS, just perhaps, this deal also bought the UK's vote in favour of Malta joing the EU....?

BOQ! Just a "supposition" ;-P

Mr Stephen Borg

Aug 5th 2012, 14:10

Agree with you hundred percent but I can assure you that some one will say that nevertheless the government created 20000 jobs and the usual bla bla bla, so as to make us forget all other important and pressing issues like this one where people close to the current administration got a good lump of money from the usual consultations and commissions whilst in the meantime many Maltese people have a part time job as their main source of income and cannot make ends meet. Prosit PN.

C. Bartoli

Aug 6th 2012, 11:37

tiftakruh lil alfred sant jghid inbazwru ftit l hemm u inbazwru ftit l hawn

Eddy Privitera

Aug 5th 2012, 12:04

Joseph Cauchi: All you are doing is hypothecating ! Surely, if any PL MP or official was involved in any wrongdoing, GonziPN would have revealed it a long time ago ! So that crucial decuision can only have been taken by a PN person !!!!

m. borg (slm)

Aug 5th 2012, 12:56

Mr Cauchi your conclusion always are baseless and wrong.

Like Mr Privitera explained if it was a labour minister the fact would have surely been used as electoral propaganda.

Ask yourself why RCC asked for the investigation report to be made public when it was never concluded and stopped by a high official.
RCC is not stupid and neither are we MR Cachia Caruana.

thomas dimech

Aug 5th 2012, 13:41

lets stop asking if it was a PN or MLP board appointed. lets just ask the judge in question to try harder and remember who told him to stop the inquiry. i`m sure if a citizen was testifying in front of this judge and the citizen "forgot" something really important the judge would have strongly asked him to remember.

Vincent Cassar

Aug 5th 2012, 10:42

Dear Mr Galea, why do you say that "politicians from both sides"? It was the PL admin who started the inquiry and the PN post-1998 who stopped it. Doe that say something to you?. Re big fat fish and all the rest...stop moaning and do something better with your vote this election. Otherwise...chi tace...consente!

m. borg (slm)

Aug 5th 2012, 12:58

Mr Galea some people argue as we say in maltese, "Mit-toqba ta' ........... ghajnhom"

H. Galea (NRK)

Aug 5th 2012, 10:59

Unfortunately it happens to be an inescapable fact that as we grow older 'dementia' starts to set in. We are all human and hence no one seems to be exempt from such wear and tear. The proper and serious use of 'paperwork' may never be over estimated ... perhaps ..... after all, some papers do occasionally get lost or misplaced !

Joe Vella

Aug 5th 2012, 11:09

Patrick Zammit, you do not have all your facts together.

1) The inquiry was ordered under Sant's Administration, but by the Board that was in place when Sant took over.

2) Inquiry was Stopped when the New Board appointed by Alfred Sant

From the above one can say that something had taken place between the time that Alfred Sant was Elected in September 1996 and 1997. Could have been POLITICAL INTERFERENCE by the Alfred Sant Government? This give credit to What RCC is implying, For RCC to ask that the findings of the inquiry to be make public, he is not even aware that it was stopped by the new Board. What is Karmenu Vella hiding?

Irene Forster

Aug 5th 2012, 11:10

Sorry but does not compute, when does a judge not take notes???

Joseph Cauchi Senior

Aug 5th 2012, 11:18

Where does it say in the article that the decision was taken after Sant's termination?

JC.

Joe Vella

Aug 5th 2012, 11:38

Charles read the article again and get your facts straight. It was the PN appointed Board that ordered the Inquiry, only to be terminated by the Board appointed by the SAnt Government.

m. borg (slm)

Aug 5th 2012, 13:00

Mr Joe Vella you are inventing a lie, if it was Sant who stopped the investigation you think that the PN would have not mentioned this before.

Being stupid is one thing but acting stupid is totally unacceptable.

Charles J. Buttigieg

Aug 5th 2012, 23:16

@ Joe Vella.From t he article. ' March 5, 1997. Air Malta’s Board of Directors orders inquiry to establish who from the management was responsible for omitting trip-cost guarantees when the four RJ70s were purchased.'

H. Galea (NRK)

Aug 5th 2012, 09:50

Hope that it was not the janitor who imparted such a petty instruction !

john muscat

Aug 5th 2012, 11:21

What kind of judge one would be to heed "someone" from Air Malta and would not continue the inquiry?That "someone" could be easily remembered even by an ordinary man. Some people remember lesser items done 30 years or more ago!

john muscat

Aug 5th 2012, 11:25

I think you made a mistake that should have been PN and not PL, as the inquiry was ordered to stop under a PN administration,lol, Sur Curmi.

Joe Vella

Aug 5th 2012, 11:55

JOhn Muscst, The Inquiry was stopped by the Alfred Sant appointed Board of Directors, and the Inquiry was stopped under Alfred Sant Administration.

John Muscat, I think we are all laughing back at you, including is- Sur Curmi.

Edward Curmi

Aug 5th 2012, 12:55

@john muscat...are you sure you know the last time PL were in office???

R. Cilia

Aug 5th 2012, 13:16

Joe Vella, the inquiry was stopped by someone from AirMalta and the judge does not remember who he was, remember? Your comment doesn't hold water.

Advert
Advert