A presentation given by one of the Electrogas bidders prior to the 2013 election bore “multiple similarities” to the final project but the Auditor General could find no evidence that the project was a done deal, as reviewing political parties was not within his office’s remit.
In an extensive report published on Wednesday, the National Audit Office said a pre-election presentation by local investor group GEM and former Electrogas shareholders Gasol Plc was in many ways similar to the project Enemalta eventually undertook.
The Auditor General however said that while the similarities “lend credence” to claims made by former Nationalist Party leader Simon Busuttil that the project was sewn up from the outset, his office could not comment on the matter, with no direct evidence and the NAO’s remit not extending to reviewing political parties.
“Although the similarities lend credence to the allegations made by the [former] leader of the Opposition, the NAO cannot comment on whether prior agreement had been reached with the Partit Laburista before the general election and if the technical specifications for the construction of the power station set by Enemalta were influenced by parties who had a direct interest in this contract”, the Auditor General said.
Representatives of GEM, which is made up of the Tumas Group, Gasan Group and CP Holdings, have all denied striking such a deal.
Watch: Konrad Mizzi insists there's 'no evidence of wrongdoing'
Dr Busuttil had asked the NAO to examine the presentation to see if a pre-election deal had been struck between the Labour Party and Electrogas investors.
Cannot comment on whether agreement had been reached
PN MP Karol Aquilina told parliament last week that Tumas Group CEO Yorgen Fenech used to boast about having secured such a deal with Labour in 2013.
Mr Fenech was this month revealed to be the owner of 17 Black, a company which according to a leaked Panama Papers e-mail planned to pay in up to $2 million to Panama companies owned by the Prime Minister’s chief of staff Keith Schembri and Tourism Minister Konrad Mizzi.
A criminal investigation “into 17 Black” is under way.
The NAO said in its report that Electrogas’ bid did not comply with minimum requirements to win the lucrative contract on “multiple instances”.
In a statement on Wednesday, the Auditor General said the key concern that emerged from the NAO’s review of the evaluation process was the “inconsistent approach” at times adopted in the assessment of submissions for the contract.
The NAO acknowledged that certain submissions were eliminated on sufficient and justifiable grounds, while others proceeded to the next stage despite similar shortcomings.