The House Public Accounts Committee this evening started a debate on the auditor's report on the public accounts for 2014, starting with those of the Office of the Prime Minister.
Mario Cutajar, principal permanent secretary, led officials from the Office of the Prime Minister, who answered a number of questions.
The Auditor-General said an audit of Villa Francia was not carried out because the OPM officials were too busy with the hosting of international conferences. They had offered to take audit officials around on weekends, but the audit office decided to mark time.
Mr Cutajar said that the auditor's officials were welcome. The OPM itself had carried out an audit following refurbishment, the first audit since 2011.
PAC chairman Tonio Fenech then raised the issue of events held without a call for an expression of interest.
According to the report, six out of 44 event contracts sampled in the exercise were given by direct order. They cost €432,000, 38 per cent of the total cost.
Mr Fenech asked why this was done and what was the criteria used.
The government representatives said there would have been a number of discussions but there were time limitations.
Justice Minister Owen Bonnici asked the auditor’s representatives how the government would go about the matter if it wanted to get Mr X for a particular concert.
“If I cannot be flexible, give me a guide on what should be done,” he said.
The auditor agreed that regulations for such cases had to be updated as otherwise departments would have their hands somewhat tied.
Mr Fenech pointed out that while he understood that an artist holding an exhibition would set a number of requirements which would have to be followed, he did not believe he would ask for particular generators or chairs, for example.
The auditor pointed out that direct order requests to the Finance Ministry were made and given where justified
The point his office was making was that if a tender was issued, the service could have been given at a lower cost. But feet had to be kept on the ground and it was true that suppliers were limited.
“Our concern is whether direct orders are becoming the norm," he said.
Beppe Fenech Adami, PN, pointed out that according to the report, one service provider failed to submit bank guarantees for seven events. Who was it, he asked.
The auditor said it was National Events Ltd.
Mr Fenech asked why the provider had to submit the guarantee?
The government representatives said the bank guarantee was equivalent in value to the first paymen.
Dr Fenech Adami asked if it was reasonable to request a bank guarantee of 40 per cent. Was it intended to put people off?
A representative of the Finance Ministry said that no guidelines on parameters for bank guarantees were issued. These were usually issued according to the nature and value of the contract as well as the contracting authority.
Mr Fenech asked why finance ministry approval for a service provision for the Gvern li Jisma campaign was sought after the event was held.
Mr Cutajar, said he did not know why this was done but as soon as he learnt about it, which was well before the auditor’s report, he gave clear instructions that it should not happen again.