More than half the budget allocated in tenders to equipment for a new university solar laboratory has gone to one company, which is the subsidiary of a group whose chairman is the lab’s lead scientist.
Evolve has been awarded more than €1.5 million worth of tenders for the supply of lab equipment. This amounts to more than half the value of tenders for equipment issued so far.
The company is a subsidiary of the group Attard and Co. The subsidiary’s chairman is Luciano Mule Stagno, who is also associate professor at the Institute for Sustainable Energy, where he managed to secure €4 million in EU funding for the solar research laboratory at the University of Malta’s campus in Marsaxlokk.
Yesterday, Prof. Mule Stagno insisted there was no conflict of interest because he had not made any financial gain from the procurement process.
I was involved in the writing of the project proposal to acquire funds
When asked whether he received financial remuneration for his role as chairman, he said: “I receive a fixed annual honorarium from Attard and Co. as is typical for these kinds of appointments.” He did not disclose the amount.
Prof. Mule Stagno said he was not involved in deciding which company was awarded the contracts, but did play a role in preparing the specifications for the call.
“I was involved in the writing of the project proposal to acquire funds. I planned to create a state-of-the-art solar research laboratory so I knew exactly what equipment was needed.”
He added that this was well before he had any association with Attard and Co. The tender specifications were drafted by several people and he was involved in drafting those where no one else with the right expertise was available.
Prof. Mule Stagno said it was a pity “to cast an unwarranted shadow” on the project before it even took off. He explained the funding application for the laboratory was only accepted last year after the second try.
“When I accepted the chairmanship of the company, there was no indication the laboratory would be funded. In fact, we were not very hopeful. As soon as I became chairman I informed my superiors at the University of Malta. The funding only came through several months later,” he said.
He stressed that Evolve and other Attard and Co. subsidiaries were awarded “well under 50 per cent” of tenders.
Yet when the sum of the value of the tenders awarded to Evolve was taken into account, it emerged the company received more than half the budget spent so far on equipment.
Out of €2.7 million worth of tenders issued since late last year, Evolve was awarded tenders worth over €1.5 million. While it applied for some tenders which it lost, it won most of those with high value.
Prof. Mule Stagno stressed that Evolve was only chosen when it was the cheapest, fully compliant bidder.
“There were cases when the company was the cheapest bidder but was disqualified due to administrative or technical non-compliance,” he added.
The professor also pointed out that, “as far as he knew”, only one tender award was contested which showed the process was transparent.
“Malta has limited resources and we all need to wear several hats. This is unavoidable and should not be used to insinuate any improper behaviour where none exists,” he said.