The Opposition, through its members in the Public Accounts Committee, yesterday formally asked the National Audit Office to investigate the gas power station project and contracts connected to it.

PAC chairman Tonio Fenech, a Nationalist MP, said an inquiry by the NAO became crucial in view of the latest developments.

Electrogas Malta Ltd, the consortium chosen by the government to build the new gas power plant and sell LNG and energy for 18 years to Enemalta, announced last week it had changed its lead partner, Gasol plc, which sold its shareholding to the other three partners.

Electrogas sources had told Times of Malta Gasol had been “pushed out” of the consortium.

Siemens, Socar and Gem Holdings bought Gasol’s 30 per cent stake for an undisclosed sum.

The government has not published any of the contracts or given details of the State guarantee

A few weeks ago, The Sunday Times of Malta reported that Gasol was facing financial difficulties and was registering losses running into millions.

Mr Fenech said that, apart from the contracts between the government and Electrogas, the Auditor General was also being asked to investigate an unprecedented €88 million State guarantee issued by the government to cover the exposure of a €101 million loan to the consortium by Bank of Valletta.

PN deputy leader Mario de Marco challenged the government to publish all the relevant contracts if it had nothing to hide. He said that, under normal procurement rules, the departure of the lead partner in a consortium would not be allowed before the project was completed.

He asked whether the new gas power plant was needed or was it only the result of pre-electoral arrangements by Labour. Dr de Marco said that the government’s intervention to issue a State guarantee to finance the project clearly indicated that no serious financial institution wanted to back the project and that BOV was forced to issue the mega-loan.

The PN Public Accounts Committee press conference yesterday. Photo: Mark Zammit Cordina

So far, the government has not published any of the contracts it entered into with Electrogas and has not given details of the unprecedented State guarantee.

When asked, Prime Minister Joseph Muscat always said the government would publish the documents at the opportune time.

The power plant was originally scheduled to start producing energy in March 2015. However, last December, the government announced an 18-month delay. Still, energy tariffs were lowered as promised even though the new power plant was not ready.

Reacting to the PN’s inquiry request, the government said it had already sent a letter to the NAO giving clarifications on changes in the consortium’s shareholding. The government said Gasol’s departure followed “due process”.

The letter was not published.

The government said a meeting with the NAO was scheduled.

Energy Minister Konrad Mizzi insisted in a statement that the changes in the consortium’s shareholding would have no bearing on the project.