The Infrastructure Ministry has defended its decision to give a €74,692 direct order to a consultancy firm in order to investigate cost overruns at the new Parliament building.

The Auditor General said in his annual report that direct orders should be kept to the “barest minimum”, in line with public procurement regulations.

It was also revealed that the Infrastructure Ministry had failed to obtain prior approval from the Finance Ministry before giving the direct order, as is the norm.

A ministry spokeswoman insisted the matter was of extreme urgency and the investigation was to be done by June 2014, when the claims for extra work for the Parliament were to be assessed.

This was why the specific procurement procedure of a direct order had been adopted, the spokeswoman said.

She denied that the investigation into the Parliament cost overruns itself had gone over budget.

The Auditor General said in his annual report that additional funds had been requested by the Infrastructure Ministry in relation to the investigation.

The spokeswoman clarified that the investigation was split into two phases and the cost for the second phase was based on the analysis carried out in the first phase.

“One could not estimate the cost of the second phase before the completion of the first,” the spokeswoman said.

She said the first phase was intended to be done by the auditors, to test the research methodology to be adopted in order to define a structured process to perform the investigation. The first phase of the investigation was carried out by RSM Limited at a cost of €8,000.

The second phase involved the implementation of the investigative process drawn up in the first phase and the compilation of an expert report. The spokeswoman said phase two was carried out by Insight International at a cost of €74,692. There were no additional expenses or overruns, she said.

The Auditor General noted in his report that no information had been traced showing the rationale behind the appointment of the company and no approval for the direct order was ever sought.

One individual who carried out work on the report was paid €320 per hour, while €130 per hour was paid to two other individuals.

Expense claims of €6,724 for flights, taxis, car park fees, accommodation, and a meal were not backed up by supporting documents, the Auditor General found.

jacob.borg@timesofmalta.com