A law firm owned by the board secretary of State utilities billing company ARMS Ltd was earlier this year awarded a €60,000 direct order by the same company for ‘legal services’, the Times of Malta is informed.

Aaron Mifsud Bonnici

According to public records in the Government Gazette, ARMS Ltd, fully owned by Enemalta and the Water Services Corporation, awarded a direct contract to Mifsud Bonnici Advocates.

Asked about the issue last week, a spokesman for the Prime Minister, under whose political responsibility ARMS Ltd falls, did not reply.

Reminded yesterday to state whether the award of a direct order by ARMS to its own company secretary may pose a problem of conflict of interest, the OPM said that the questions should be answered directly by ARMS Ltd.

On his part, Dr Aaron Mifsud Bonnici said that he sees no conflict of interest.

“As company secretary, I do not take decisions on behalf of the company, and, clearly, I did not have any role in the company’s decision-making process in relation to the contract for legal services. Therefore, there is no conflict of interest,” Dr Mifsud Bonnici insisted.

According to Dr Mifsud Bonnici, his firm is providing services to ARMS related to representation in court, drafting and filing of judicial acts, attendance at ARMS’ offices in relation to debt collection and other legal aspects as required.

No tender has been issued prior to this direct order.

Following the stripping-off of Minister Konrad Mizzi’s political responsibilities due to the Panama Papers scandal, ARMS Ltd had been incorporated under the political wing of the Prime Minister.

Incidentally, Dr Mifsud Bonnici, who set up MB Advocates a few years ago, was yesterday accompanying the Prime Minister in Singapore to see-off the new LNG vessel on its way to Malta.

Asked to explain the presence of Dr Mifsud Bonnici in the OPM official delegation, a spokesman for the Prime Minister explained that Dr Mifsud Bonnici was in Singapore as a legal consultant to Minister Konrad Mizzi.

Apart from acting as ARMS board secretary and legal consultant to Minister Mizzi, Dr Mifsud Bonnici is currently also acting in a number of other posts which used to fall under the political responsibility of Dr Mizzi, including as the main legal advisor of the General Workers Union. He was appointed to serve by Minister Mizzi as Company Secretary of Enemalta PLC; Engineering Resources Limited; Energy Services Centre Limited; International Clean Energy Limited; International Energy Service Centre Limited; MPG Energy Services Ltd, Projects Malta Ltd and Projects Plus Ltd.

He has also recently accompanied Minister Konrad Mizzi to Montenegro and Shanghai for talks on the energy sector.

Dr Mifsud Bonnici’s firm is currently also offering its legal services through direct orders to the Office of the Prime Minster and Mater Dei Hospital.

In his personal capacity, Dr Mifsud Bonnici acts as Company Secretary on a number of GWU commercial entities including GWU Holdings Ltd, Inews Malta Ltd, Union Print Company Limited and Untours Insurance Agency Ltd.

In 2014, following a call for tenders, ARMS Ltd decided to lease office space from the GWU in Valletta for €62,000 a year.

Following an investigation, the National Audit Office found that this deal breached public contract rules and recommended that the Attorney General should start legal procedures against the Union.

No legal action has been initiated so far by the government.

ivan.camilleri@timesofmalta.com