Wasteserv paid out management bonuses of more than €250,000 over six years for meeting “loose and highly subjective targets”, according to a damning audit published yesterday.
It was claimed these bonuses were paid for meeting key performance indicators, but these indicators were not specified by executives of the Government’s waste management company to the independent auditor.
The performance bonuses of individual senior managers were decided by the chief executive, “contrary to normal management practices”, according to the report.
It should be noted that JF Security seems to be running Wasteserv
In the case of the chief executive, the auditor presumed his performance bonus was set by the chairman, “although there is very little trace of how this was achieved”.
These were some of many irregularities and problems highlighted in the audit, which was commissioned by the Government and conducted by Idea Management and Consulting Services.
It was carried out following continuous reports of abuse, irregularities and non-existent or collapsed systems in Wastserv, Environment Minister Leo Brincat told Parliament on Wednesday.
The board members and CEO referred to in the report no longer work at Wasteserv, having being asked to resign by the Government following its March 9 election victory.
The most recent CEO under the previous government was Saviour Abela. Members of the previous board appointed by former Resources Minister George Pullicino were chairman Ben Farrugia, William Spiteri, Isabelle Borg, Gabriella Cuschieri, Peter Perotti, Marthese Portelli and Mathieu Cilia.
The auditor said senior managers did not develop a business plan beyond 2012.
Senior managers also failed to provide any substantial proof of holding regular meetings. From February 27 to September 28 last year, there were only six senior management meetings on record.
According to the report, Wastserv operations were dependent on an external security firm whose workers were engaged as contractors.
The Government’s waste management company directly employed 103 workers but a further 306 employees were employed by JF Security on its behalf.
“It should be noted that JF Security seems to be running Wasteserv rather than Wasteserv running its own entity,” the report said.
The contract with JF Security expires in September 2014. The original contract was signed in September 2010 for one year then extended for another three years.
The auditor concluded that Wastserv had no recruitment or human resources strategy.
It found it “astonishing” that the waste management company had 106 different job positions, meaning on average there was a unique job position for less than every four employees.
Looking into these positions in detail, the auditor discovered they were created to meet personal needs rather than organisational requirements.
There were few trained people in management roles
It found there were few educated and trained people in management roles and no training, development or incentive schemes for employees.
Through board minutes, it was discovered that the health and safety manager had been found guilty of health and safety negligence by the courts and was under a suspended sentence. Nevertheless, the board had allowed him to keep his job although he was unable to sign certain documentation.
Data for the audit was gathered through meetings with senior management, analysis of primary and secondary data and “other means of investigation.”
Speaking in Parliament on Wednesday, the Environment Minister said he was expecting the new board to urgently address these shortcomings.
Mr Brincat said the Government knew of an internal Wasteserv report and a report by the previous administration that were conducted on the waste management company but never acted upon.
In response, Dr Pullicino sought confirmation on whether the auditor had even met the former chairman and board members during his investigations.
Last December, the Auditor General had issued a scathing 11-page report which revealed widespread shortcomings and rule-breaking at Wasteserv.