A government investigation into financial shortcomings over the award of a fairy lights tender by Sliema council has been broadened to include other tenders worth thousands of euros, The Sunday Times has learnt.
The initial investigation into allegations of financial mismanagement by Sliema council was conducted by the acting director of the Local Government Department, Martin Bugelli, who referred the case to the government's Internal Audit and Investigations Directorate.
It is understood that a number of contracts awarded by the council, including those for consultancy services and the installation of sleeping policemen, are also under investigation.
The fairy lights tender worth €96,000 awarded earlier this year to Project Management Group (PMG) to light up all the trees along the Sliema promenade from Balluta to Qui-Si-Sana is at the centre of a storm after the council extended the contract to cover the Sliema Ferries.
The extension, which includes trenching works that have already started, is expected to cost around €145,000. The council was invoiced for €29,500 for the trenching works alone.
Government sources said legally the council could not grant an extension to the original contract unless the variation was below 20 per cent of the contract value. Yet this variation amounted to 151 per cent.
However, it is the internal bickering between some Nationalist Party councillors and mayor Nikki Dimech that has led to a stalemate over the minutes of a council meeting held on April 21.
Sources said the draft minutes do not record any decision being taken by the council on the extension of the fairy lights contract, a fact contested by Mr Dimech who has publicly insisted that a decision was taken. On the matter Mr Dimech enjoys the backing of Nationalist councillor Yves 'Bobby' Cali and Labour councillor Martin Debono.
During a council meeting last Wednesday, Mr Bugelli informed Sliema councillors that the investigation was no longer in his hands because he could not handle "a case of this magnitude" and he had therefore referred it to a higher authority. Mr Bugelli froze all council payments pending the outcome of the investigation.
As things stand, it will be impossible for Sliema's fairy lights to be installed along the promenade by the June 18 contractual deadline according to PMG managing director Mario Camilleri.
"Nobody has yet written to me or told me that the project is frozen. Until now I do not know that the project is frozen," Mr Camilleri said when contacted.
He explained that the company stopped works on the project two weeks ago, before the whole rumpus became public, after e-mails sent to the council went unanswered.
"I asked for technical clarifications from the council and received no reply. An electrical engineer has to test my system and give me the go-ahead to install the lighting," Mr Camilleri said.
He refrained from commenting on the goings-on at the council, insisting that if there was a contestation of sorts it would have to be resolved by the councillors.
"I will wait for them but obviously I will not meet the date by when I should have finished the job and tourists will see something unfinished," he added.
Mr Camilleri would not say who gave him the go-ahead to proceed with the works on the extension, pointing out that council decisions were taken by majority vote.
When asked whether the company was paid a deposit for the contested extension works, he said: "The extension is not a different tender. It was decided upon based on general government practice. The extension is simply similar work to what has already been started on another part of the promenade."
Mr Camilleri insisted it would have been unfair on his company had a new tender for similar works been issued.
"Do you give the tender to somebody else after my prices and specifications were made public? It is only fair to award completion of works already started to the only company that maintained interest in the tendering process," Mr Camilleri said.
Attempts to contact the Sliema mayor yesterday proved futile. ksansone@timesofmalta.com