Government and Opposition MPs spar on Electrogas contract

The National Audit Office report on the gas power station contract made no reference to corruption, government MPs on Public Accounts Committee have insisted.

During another session of the committee that dealt with the NAO report on the Electrogas power station, Labour MP Glenn Bedingfield said the words “corruption” and “irregularities” did not feature despite claims by the Opposition.

The remark prompted Nationalist MP Karol Aquilina to point out that one of the Electrogas shareholders stands accused of murdering a journalist. The reference was to Tumas Group magnate Yorgen Fenech, who was charged with masterminding Caruana Galizia’s murder.

Bedingfield insisted that was “beside the point” of the issues being debated in the PAC.

He said the Electrogas power station enabled the country to lower electricity prices.

PAC chair Beppe Fenech Adami commented that Bedingfield’s remark “reflected what was wrong with the current administration”.

MPs sparred between them over various aspects of the contract that were being explained by NAO officials summoned to testify about their report.

NAO chief investigator Keith Mercieca said the premature withdrawal of Gasol from the Electrogas consortium constituted bad governance but noted the final outcome of the adjudication board would not have changed had Gasol not formed part of the consortium from the start.

On the government bank guarantee provided to Electrogas pending clearance of a security supply agreement by the European Commission, the NAO said the government took great risk.

“It is not normal for such a guarantee to be provided to a private company and it was a big risk,” the NAO official said, adding it could have been handled in a better way.

Bedingfield insisted the guarantee was necessary for the project to move forward and after the European Commission gave the go-ahead it was lifted.

“The government did not fork out one cent for this guarantee and instead raked in €11 million in fees from Electrogas,” the government MP insisted, to the ire of Opposition MPs who argued that government gambled with public funds.

The NAO said that it was a Cabinet decision to agree to the multi-million-euro bank guarantee.

Auditor General Charles Deguara said the security of supply agreement was in itself a form of guarantee for the consortium but such arrangements were to be accepted in large public projects of this sort.

The NAO officials are expected to continue testifying but no date has yet been set for the next sitting.