It had to cost almost €85,000 but taxpayers paid out an additional €48,000 for upgrading the Sliema Front, according to the National Audit Office.
The “substantial variation” of 57 per cent from the approved tender issued by the Resources Ministry was flagged in the NAO’s annual report for 2012 tabled in Parliament this week.
The tender approved by the works and services department was for the supply and laying of natural paving material and was awarded for a contract value of €84,643. However, the NAO noted that additional works and variations to the original tender totalling €48,163 were approved by the permanent secretary.
This was the most glaring example of cost variations from a list of capital projects highlighted in the review.
Another project for the supply and installation of stainless steel and glass guards for use at Tigné in Sliema came with a variation of 37 per cent and the additional cost was only approved after works were completed.
The construction of the Buġibba water park also ended with a final bill that was almost 30 per cent more than the contract value. The water park tender had a value of almost €124,000 but the NAO found that after objections from boathouse owners in the vicinity the layout of the project was revised, translating into an additional cost of €37,000.
The NAO said the variations bypassed procedures. “The risk exists that related costs might have not been competitive.”
But the audit office also commented on the purchase of various items for use in the opening ceremony of the water park. The items were bought for almost €5,000 directly from the open market without the necessary authorisation from the permanent secretary. The capital projects with substantial variations analysed by the NAO had a total contract value of €2 million. The extra works resulted in variations worth more than €200,000 or 11 per cent.
“The majority of capital projects... experienced unplanned changes and additional work after the issue and adjudication of the tenders,” the NAO said.
The office called for proper planning, inspections and designs to be carried out in order to minimise any substantial changes that may be required at a later stage.