The Infrastructure Ministry noted today that neither the Israeli Ambassador nor power station contract bidder Bateman had denied any one of the facts stated by Minister Austin Gatt at a Public Accounts Committee meeting last week.

Reacting to media reports today, particularly comments by the Israeli Ambassador (see The Sunday Times http://www.timesofmalta.com/articles/view/20101205/local/israeli-ambassador-denies-gatt-s-false-accusations ) the ministry said that with respect to the Israeli Ambassador, the facts were that:

1. The ambassador said that the Labour Party had good contacts with Bateman and the matter would embarrass Government;

2. He said that matter had been raised by Dr. Joseph Muscat himself in the meeting the Ambassador had with him.

3. He said that the Director of Bateman was an ex-minister of Finance and a close friend of the present one and could help in the negotiations on the Double Taxation Agreement;

4. The ambassador also said that if Bateman won the tender this would help the double taxation agreement.

The ministry said the Prime Minister and his Head of Secretariat were present when these statements were made and the Israeli ambassador could hardly deny them. Evidence of them also existed in the files of the Auditor General.

The telephone call by ex-Prime Minister Ehud Olmert to Dr Gonzi could also be attested to by OPM secretariat and the Prime Minister and again, could hardly be denied.

"In fact, it would be interesting to learn if the Ambassador talked to Olmert about the tender," the ministry said.

Furthermore, the ministry said, Bateman could also hardly deny the statements the minister made in their regard:

1. Correspondence was with the Auditor showing they tried to involve the Prime Minister before the tender was awarded; similarly, it was Bateman who requested to meet the Maltese permanent representative in Brussels;

2. It was Bateman which presented what they themselves called a "political brief" during the tender process;

3. Minutes of the meeting Bateman's agent held with the Maltese Permanent Representation showed that their agent claimed Bateman had insider information, made subtle threats and stated that they had lobbied with MEP's.

"Not one of these facts was denied by Bateman," the ministry said.

"Whether all the above amounts to improper use of political influence, the use of threats and incentives and improper access to insider information may be a matter of opinion but imagine if all this could be attributed to BWSC!!," the ministry said.

It also pointed out that the Auditor General himself, in his report, actually acknowledged that Bateman used "diplomatic channels" to further their interests.