The Foundation for Medical Studies will present the House Public Accounts Committee with a six-month progress briefing, listing variations being made in the Mater Dei Hospital contract.
The committee asked for this report following remarks by FMS chairman Paul Camilleri that discussions were going on between various ministries to arrive at certain conclusions regarding the new hospital and the housing of different departments within it, including the Medical School library.
Architect Camilleri said the contract was on schedule and it was the intention to transfer all activities currently taking place at St Luke's Hospital to Mater Dei (picture). However, discussions were still going on regarding this as St Luke's did not fall under the FMS's remit.
Similar discussions are being held regarding Zammit Clapp Hospital.
The hour-long session on the FMS reports for 2003 and 2004 centred mainly on the variances in costs for the 825-bed hospital. It was ascertained that Mater Dei's total cost would be Lm183 million.
Mr Camilleri several times referred to the detailed statement made by the Prime Minister to the House of Representatives last November when he announced the agreement with contractor Skanska for the completion of the hospital by mid-2007 for a maximum lump sum of Lm139 million. Skanksa are still owed Lm53 million.
The government has invested Lm10 million in IT for the hospital. It has since decided to house the whole back-up operation at a centre at Mater Dei. Together with the installation of up-graded medical equipment, this would erode some of the savings made through other adjustments for the better utilisation of the existing buildings.
Mr Camilleri pointed out that the variations in the cost of the hospital emanated mainly from under evaluation of costs. As an example he quoted the difference in the cost of the roads within the complex: while the contractor quoted Lm180,000, the actual cost would amount to Lm1.5 million. He said that the Prime Minister had laid on the Table of the House two volumes listing such variances.
Committee Chairman Charles Mangion asked how such variations could be made and whether the Contracts Department accepted such errors. The Director General at the Ministry of Finance, Saviour Gauci said that contracts of such magnitude were not overseen by the Contracts Department but by an ad hoc committee falling under the responsibility of the Prime Minister. It was only now that agreement between the government and Skanska had been reached that the contracted reverted back under the chairmanship of Parliamentary Secretary Tonio Fenech.
Mr Mangion said variations of 15 or 20 per cent in contracts were normal but these were far off target. He called for greater caution and transparency.