State energy company Enemalta is expected to award a €2 million contract for the dismantling of the chimney of the old power station in Delimara to an Italian company undergoing legal bankruptcy procedures.
The Sunday Times of Malta is informed that earlier this month, Enemalta, the political responsibility of Minister Without Portfolio Konrad Mizzi, published a procurement notice stating that the tender had been awarded to General Smontaggi Spa, a company based in Novara, northern Italy.
However, research conducted by this newspaper shows that the award of this contract goes against the rules indicated in the conditions of the tender, as the Italian company is in a dire financial state: last year it started procedures for bankruptcy.
The tender document’s conditions clearly state that the Italian company should have been disqualified immediately from the competition. A company “which is bankrupt or is being wound up, or whose affairs are being administered by the court” is to be excluded, it says.
The tender document clearly states that the Italian company should have been disqualified
Enemalta is obliged to conduct due diligence on all bidders. Yet it awarded the €2 million contract to the bankrupt company. Official documents issued by the Tribunale di Novara in 2015 and seen by this newspaper show that General Smontaggi Spa is in “a state of irreversible insolvency which is not of a temporary nature”. Judicial Commissioner Daniele Fre is overseeing its winding-down process.
A quick internet search also shows that the company was mentioned in shady dealings investigated in 2014 and involving a probe on tenders awarded for the Milano Expo. Following a probe by magistrates in Milan, a number of politicians and businessmen from northern Italy were arraigned in court on charges of bribery and the illegal award of tenders connected to the expo and other large projects.
In the conclusions of the Milan inquiry, General Smontaggi was indicated to be one of the companies which benefitted from tenders awarded by the Cupola Expo – as the group of Italian politicians and businessmen accused in court are known.
Enemalta sources told The Sunday Times of Malta that senior officials had been aware of the problems with the tender and had “already expressed their concern” about the situation.
When contacted, Enemalta said it is engaged in a competitive process for the selection of a contractor to dismantle the 1992 HFO-fired Delimara 1 plant and demolish its chimney.
"This procedure is being coordinated in collaboration with the relevant authorities, as per applicable Government of Malta procurement regulations.
"The selection process is still ongoing and the contract has not yet been awarded. It would not be appropriate, or ethical, for Enemalta plc to comment about this process before it is completed," the company said.
Although the minister responsible for Enemalta is officially Prime Minister Joseph Muscat, its day-to-day running is still followed by Dr Mizzi – the former health and energy minister who lost his portfolio following his involvement in Panama Papers.
ivan.camilleri@timesofmalta.com