Israeli Ambassador Gideon Meir has rebutted what he called “false accusations” made by Infrastructure Minister Austin Gatt in his regard in connection with the Delimara power station extension contract.
Dr Gatt last week claimed top Israeli officials put undue pressure on the government to favour an Israeli company bidding for the extension, which was awarded to Danish bidder BWSC.
“We suggest that whoever needs to explain the odd results of the tender should focus on the issue itself instead of trying to involve us by using false accusations,” Mr Meir’s spokesman Yariv Ovadia said.
“The ambassador of Israel acted in a proper manner and as part of his duties to promote economic cooperation between Malta and Israel. The allegations suggesting that the Israeli ambassador or any other Israeli official had threatened any Maltese official are totally false.”
The spokesman added that during “routine rounds of meetings” of the ambassador in Malta, various people expressed their concern about apparent irregularities in relation to this tender.
This prompted the ambassador to refrain from dealing with the subject and he informed Prime Minister Lawrence Gonzi of his decision, the spokesman said.
“We feel sorry that the integrity of the state of Israel and the ambassador were dragged into this internal Maltese affair.”
During a Public Accounts Committee meeting last Tuesday, Dr Gatt also accused Israel of dangling a double taxation avoidance agreement as a “carrot” for the government.
Responding to these claims, the ambassador said: “The agreement for double taxation avoidance between Israel and Malta is being finalised these days to the great satisfaction of the Maltese authorities and will be signed in the very near future.”
The minister said pressure took the form of a meeting between the ambassador and the Prime Minister, phone calls to Dr Gonzi from former Israeli Prime Minister Ehud Olmert, a political brief to Malta’s permanent representation to the European Community, veiled threats and political incentives.
Dr Gatt said that while the Israeli company – Bateman – had accused winning company BWSC of unlawful political assistance and insider information, evidence given before the National Audit office showed it was actually Bateman which had resorted to such tactics.
A spokesman for Dr Gatt said he had nothing to add to what he already said except to point out that the ambassador “did not deny saying the statements attributed to him”.
“As long as the words attributed to him are correct, everyone is free to conclude what they amount to in the circumstances.”
The Foreign Affairs Ministry said it had not been contacted by the Israeli Embassy.
It emerged last week that the European Commission is closing its infringement procedures against Malta in connection with the power station extension project.
The proceedings were launched last June through a letter of formal notice after the power extension contract was awarded to BWSC.
The Commission had queried the procedure adopted by Enemalta in awarding a €183 million contract to increase the local generating capacity at the power station in Delimara and for a contract concerning the maintenance.