Former finance minister Tonio Fenech did not understand the grave state Enemalta was in when he refused funding, according to the corporation’s former CEO.
Addressing Parliament’s Public Accounts Committee yesterday, David Spiteri Gingell said his 11-month tenure at Enemalta between 2007 and 2008 was characterised by constant clashes with the finance ministry.
“I could not implement change... because decisions were being taken from South Street [the Finance Ministry], who in their wisdom were not seeing the gravity of the problem,” he said.
The committee continued its probe into the Auditor General’s findings on how Enemalta bought oil between 2008 and 2011.
Well prepared, Mr Spiteri Gingell described the pitiful state Enemalta was in when he took over in July 2007.
Documenting a list of shortcomings, he said the company, which had a billion dollars in turnover, only had five accountants.
I could not implement change... because decisions were being taken from the Finance Ministry
As a result, accounts were being filed late and debtors were not being chased.
Mr Spiteri Gingell said he had been recruited by then energy minister Austin Gatt to bring about change but claimed his efforts were scuppered by the Finance Ministry’s refusal to allow recruitment of key personnel.
The ex-CEO said he had asked for the recruitment of 15 accountants and finance officers to bolster the finance division and another 30 people to fill new posts that had to be created to strengthen the corporate structure. The new recruits would have cost Enemalta €5.6 million.
Had the changes have been implemented, he claimed, the PAC would not have been discussing the Auditor General’s damning conclusions on lack of accountability.
Until March 2008, Mr Fenech was finance parliamentary secretary under the Office of the Prime Minister. He became finance minister after the March election.
Dr Gatt was responsible for Enemalta until January 2010 when the energy corporation was transferred to the finance ministry under Mr Fenech’s portfolio.
“It was sweet irony that Tonio Fenech later became responsible for Enemalta because he could then experience first-hand the corporation’s problems,” Mr Spiteri Gingell said.
ksansone@timesofmalta.com