Mangion calls for publication of BWSC due diligence

Says Prime Minister should table due diligence report on Enemalta contractor

Charles Mangion, Labour’s main spokesperson on finance, has accused Enemalta Corporation of making “due diligence” about BWSC’s sub-contractors and relying only on BWSC’s declaration during the adjudication process for the 144 MW Delimara power station extension.

Mangion insisted in a statement on Monday that this behaviour confirmed that whoever had made this choice “failed to execute in a proper manner the tender process despite the pre-established financial regulations which also bind all those involved in the tender process”.

He also recalled that the Auditor-General had expressed its doubts about the truth of the sworn declarations by Enemalta officials about the power station extension case.

Mangion asked whether enough due diligence had been performed on BWSC’s submissions to Enemalta and the Department of Contracts.

If a preliminary investigation has indeed been performed, Mangion called on the government to publish its conclusions.  If this investigation had not been made, he asked the Government to state whoever was responsible for this failure.

If these investigations have been concluded, it would be a good thing that the public was informed about the outcome of these investigations and if whether the truth of these investigations had indeed been hidden, Mangion asked.

“In view of due diligence and accountability, has BWSC presented information which misguided the government?” Mangion asked, saying that the company would have therefore been “excluded from the whole tendering process with immediate effect”.

This, he added, tied a lot with the obligation of the Contracts’ Department and Enemalta to perform “due diligence”.

Finally, Mangion also called on the Prime Minister to confirm whether he was going to take all necessary steps so that BWSC is fined the fines stipulated in the power station extension contract for such breaches of contract.

It was clear that the malpractices and irregularities in the contract that have already cost the Maltese public €200 million, would have increased further. “The lack of serious and accountable action by the Government led by Gonzi is evident,” Mangion concluded.