Former Privatisation Unit head Emanuel Ellul told the Public Accounts Committee he sought the services of experienced legal firms to ensure the privatisation process was in line with the correct procedures, EU directives and regulations and so they could win any court cases that might arise.

Mr Ellul made the declaration when answering a question by Labour MP Anthony Agius Decelis, who asked why some legal firms had not been considered. He said often five or six experienced legal firms would be contacted. These were chosen on the premise that they could deliver.

Answering a question by Claudio Grech (PN), Auditor General Anthony Mifsud specified that Mimcol Limited was an entity that was exempt from going for the tendering process.

He accepted the MP’s argument that giving the procurement contract for legal services by direct order was legally and technically acceptable. The legal firms which benefited from such direct orders, amounting to €536,000, were Fenech & Fenech Advocates, Mamo TSV and GVTH. Fenech & Fenech Advocates benefited from €300,000 in five privatisation processes, all in the maritime sector.

Government revenue from the privatisation process for which the legal firms were hired was estimated to amount to €180 million when considering also the rent to be paid for the concessions.

Mr Ellul told the committee that a meeting with former minsters Tonio Fenech and Austin Gatt had been held regarding the privatisation of Malta Shipyards because the EU was insisting the government close the yard, whereas the latter wanted to privatise.

During the meeting the issue of legal advisers arose and they relied on the expertise of Fenech & Fenech in maritime affairs.

Mr Ellul said that, according to instructions from the Ministry of Finance, caps for every direct order had been set at €135,000. Conditions set had always been met.