According to Maltese legislation, even the blacklisting of a company by the World Bank does not automatically bind Malta to follow suit, although that does not mean the blacklisting would not be taken into serious consideration, Finance Minister Tonio Fenech told Parliament yesterday.
He was answering a number of opposition questions about the blacklisting of Lahmeyer International, which was involved in a tender process that had not yet been adjudicated.
Minister Fenech said it had been only a few months ago that the European Investment Bank and the World Bank had reached an agreement on mutual recognition of a blacklisting, but Malta had never agreed with any state on such mutual recognition.
One must be very careful on how to go about such things, he added.
It all started when Minister Fenech replied in writing to a parliamentary question by Labour MP Owen Bonnici, who had asked for a list of blacklisted companies that the government could therefore not award tenders to.
The written reply was that before contracts of a certain value were signed by the Department of Contracts, economic operators were asked to produce certificates from the courts and tax departments, such as VAT, inland revenue and customs. The certificates should confirm that such operators had never been found guilty of serious professional misdemeanour, or were in a state of bankruptcy or under any sort of arrangement with creditors.
Minister Fenech added that it was intended to extend such certification needs to company directors and include court decisions on charges of fraud. On the other hand, the tax departments would have to certify that the intended awardee was up to date in the payment of taxes, including NI contributions.
Asked why he had not provided the requested list, he said there was no formal blacklist, but that did not exclude the possibility of bringing the same requirements to bear on foreign companies. A tenderer's standing would be examined only at the point of tendering.
He would "presume" that the requirements would apply if any EU funds were involved, but to date only a declaration was required, although a new procedure was being drafted.
Opposition MP Leo Brincat asked if the government intended to go on dealing with Lahmeyer International, which was still involved in the tendering process for the power grid with Sicily in spite of having been blacklisted by the World Bank.
Minister Fenech said he was not aware of Lahmeyer's ongoing involvement, but a blacklisting could be issued for reasons other than corruption. To date, all that a tenderer had to present in Malta was a clearance certificate.
The courts' decisions on the recent VAT corruption cases had involved individuals, not companies. The procedure was being reviewed to make sure that once a company director was found guilty, the repercussions would also fall on any company he directed.