Enemalta kickbacks scandal ‘explains resistance to gas switchover’ - Muscat

Labour leader Joseph Muscat took the Nationalist administration to task over revelations published by Maltatoday on Sunday that Frank Sammut, the former chief executive of the MOBC, received a consultancy fee by commodities supplier Trafigura for oil consignments to Enemalta, paid through a Swiss bank account whose beneficiary was a Gibraltar company he owned.

"I don't believe they are allegations," Muscat said, pointing to what he described as "black on white" proof that payments were made by an oil supplier to Sammut.

Muscat set his sight specifically on Prime Minister Lawrence Gonzi, saying that "the Prime Minister has yet to pronounce himself on the issue."

"He has yet to say whether he, or people close to him, had ever been alerted to this case or similar cases, regarding the issues that there are in Enemalta," Muscat said. "Instead, he opted to remain silent about it."

He called on Gonzi to "shoulder responsibility" for the revelations, while dismissing Gonzi's announcement that he had instructed the Police Commissioner to invest the case.

"The Police Commissioner saw the newspaper on Sunday morning as we all did. I would imagine that they did not need the Prime Minister to request them to start an investigation," Muscat said.

Muscat went on to add that he was "concerned that Gonzi felt the need to call on the police to start an investigation," reiterating that he expected the Police force to investigate the case on its own initiative.

The Labour leader said that while "shocking" the revelations "helped [me] understand the enormous ongoing resistance against gas."

"I understood better why Enemalta and government, on two occasions, opted to go for oil instead of gas," referring to a privately-funded gas pipeline proposal in 2004 which was dropped, and the Delimara power station extension built in 2008, which was built using heavy fuel oil.

Muscat added that this has resulted in a situation where today, the government spends roughly €1 million on oil each day, despite how the Nationalist government had multiple opportunities to switch to gas energy.

He also expressed the opinion that "it is indeed the tip of the iceberg" and noted how the Nationalist government failed to introduce a much-needed Whistleblower law that would ensure that such abuses become public knowledge.

"The Prime Minister felt it necessary to build a parliament, but did nothing to introduce a whistleblower law," Muscat told the party faithful.

During his address, Muscat also reiterated several proposals that Labour unveiled in the preceding days.

On the topic of excessive bureaucracy, Muscat said that a Labour government would cut down on MEPA procedures whereby developers are "between a rock and a hard place" regarding how permits become void after five years unless site works begin.

Muscat said that all MEPA permits would be extended beyond this five year period "to allow both developers and the environment more breathing space."

Muscat also emphasized that Labour's priority for the public sector is reassuring the parents and families of disabled people that they will be cared for should they find themselves without their care and support.

Muscat drove home Labour's message that it is committed to reassuring parents and families of disabled people that, once carers and parents pass away, they would not find themselves forced to fend for themselves.

Muscat reiterated that a Labour government would make greater use of trust funds in the provision of community-based care homes for disabled, and that a Labour would ensure that any inheritance left to disabled people by parents and family in the form of trusts "would not be subject to a single cent of taxation."

Muscat also spoke about statements he made in an interview in the Sunday Times a day earlier, regarding government appointments.

Muscat emphasised that Labour would work with any public official who is willing to work with a Labour government, and is willing to take on board both Labour's mandate, and Labour's vision.

At the same time, Muscat said that among the "capable, deserving, and meritorious" people in the public service, "there are others who are there because they are part of the fan club."

"The cardinal point is not how they voted, but whether they are willing to work with a new government, and whether they believe in the direction and mandate a new government has," Muscat said.

Muscat also reiterated the Labour's free child care proposals, saying that while it would cost the country's coffers €3 million, it would result in 3,000 new spots for children, and 500 new jobs for child carers.

He also said that the €3 million investment would be recouped in five years, given that the measure will result in 2,500 more women joining the workforce and paying income tax.

At the same time, Muscat said that the decision of parents to stay at home and care for their children instead of going out to work "should be respected and not obstructed in the slightest."

Muscat also hit out at the Nationalist Party for communicating conflicting messages. He said that despite how Gonzi recently said that by 2015, a Nationalist government is committed to balancing the budget, that same government's 2013 Budget speech lays down that in 2015, it expects to see a deficit of €49 million.

"The right hand does not know what the left hand is doing," Muscat said.