Skanska, the Swedish company that built Mater Dei Hospital, yesterday vehemently refused any claims of “fraud” made by Health Minister Konrad Mizzi over “defective concrete”.
In the meantime, the Times of Malta is informed that legal advice given to the previous administration over a so-called ‘waiver’ in the contract with Skanska does not cover any liability for hidden and latent defects. This means that if the government is convinced the concrete is defective, it can opt to initiate legal action.
Dr Mizzi on Sunday lashed out at Skanska following media reports that they refused to meet the Attorney General to discuss claims for damages. He pledged the government would fight back “tooth and nail”.
Contacted yesterday in Stockholm, a spokesman for Skanska categorically denied there was any “fraud” adding that “no one has made any claims of fraud with us”.
Asked why the company was refusing to meet the Attorney General, the spokesman said such a meeting “would not be productive” because they did not know exactly what the government was claiming.
“We have not received any claim or detailed information as to how we could be held liable [for any damages],” the spokesman said. “Furthermore, we have an agreement that states that the parties will not be liable whatsoever for all and any further, past, present or future concerns, claims and disputes”.
When this newspaper pointed out that no agreement could override responsibility of a criminal nature, such as fraud, as was being claimed by the government, the spokesman insisted that Skanska was strongly rejecting any fraud allegations.
Dr Mizzi again pointed out last Sunday that the former administration had made his job to recoup damages more difficult due to a waiver in a ‘project closure agreement’ signed in 2009. However, sources close to the Attorney General’s office said yesterday the government had already been given legal advice that the ‘waiver’ did not preclude the government from taking legal action.
Following the inauguration of Mater Dei in 2007, Skanska had raised a number of claims with the Foundation for Medical Services, the government agency responsible for the project, amounting to €28 million. A project closure agreement was subsequently reached following talks and both sides had agreed on a settlement of €4.7 million.
At the time, the legal firm assisting FMS, Camilleri Preziosi, had advised that, despite the settlement, Skanska would still remain liable for any hidden and latent defects in the hospital’s structure.
This newspaper is informed that Camilleri Preziosi, re-engaged by the this government in view of the new controversy, have retained their legal stance.
The issue of defective concrete at Mater Dei was raised last year when, according to the government, a new ward could not be built on top of the emergency wing because of defective concrete pillars. Instead of reinforcing the pillars, the government opted to build the new wing elsewhere on the hospital’s precincts.
An inquiry was then opened and this concluded last June that the certification of the concrete was fraudulent.