Former finance minister Tonio Fenech yesterday distanced himself from the project closure agreement signed by the Foundation for Medical Services with Skanska in February 2009.

Acknowledging he was aware the foundation was having talks with Skanska to reach a project closure agreement, Mr Fenech insisted the finance ministry was not involved.

“The final and extended agreement [signed in February 2009] was not sent to the Ministry of Finance as confirmed with my former head of secretariat and the senior officials in the finance ministry at the time,”he said.

Reacting to the statement of incredulity by Health Minister Konrad Mizzi over how exponents of the previous administration were claiming not to have seen the agreement, Mr Fenech insisted the finance ministry had not been involved in the drafting of the contract. “It appears that the FMS decided to proceed with the contract closure agreement without seeking the approval of the Ministry of Finance,” he said.

Asked about an e-mail former FMS head Paul Camilleri sent to Alan Caruana, who headed the finance ministry’s secretariat, on Boxing Day 2008, containing the terms of the agreement, Mr Fenech said the email did not seek ministerial advice but merely informed officials about budgetary implications. “Since the request from Paul Camilleri was to review the financial impact, as is standard practice, the request was sent to the Budget Office for evaluation,” Mr Fenech said, adding he had not seen the terms of agreement either.

According to the inquiry report, the terms of agreement were signed on December 26, 2008 [the same day it was forwarded to Finance] by the FMS and included a waiver clause that was not all-encompassing. The inquiry report said Skanska inserted the extended contentious waiver clause in the agreement circulated on January 21, 2009.

Mr Fenech called on Dr Mizzi to stop blaming people not involved in “what appears to be serious criminal fraud committed by contractors who must have knowingly and with the assistance of others perpetrated this grievous act”.

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