€890,000 last-minute direct orders for Marsascala family park

A report by the OPM's management efficiency unit (MEU) on the Marsascala family park has revealed how an expedient procurement was carried out urgently, and perhaps in time for a pre-electoral show of strength.

The MEU was instructed by environment minister Leo Brincat to compile a technical report on the €7 million Family Park in Marsascala, which the government claims is blighted by administrative and infrastructural problems.

The MEU concluded that the development of the Sant' Antnin Family Park was "excessively reliant on the process of variations and direct orders to such a degree that this can only be explained by lack of foresight and adequate planning."

Environment minister Leo Brincat told the press today that the government will see that the park, once reopened, is managed in a sustainable manner.

Brincat said he will be meeting with "technical experts" to assess the MEU report, if though no trace of malpractice is believed to exist. He told the press that it was still too early to comment on whether the police will be involved.

However, the minister pointed out that after discussing the report with technical experts he would be making a number of proposals to the Cabinet in the near future.

"I will be proposing a number of recommendations to the Cabinet after which the government will come forward with a holistic plan for the sustainable management of the park," Brincat said.

The 49-page report found that although procedures were largely followed, there was lack of discipline in the design and the procurement process.

It found a "heavy reliance" on direct orders, suggesting the "possibility of abusive practices which become very hard to detect as it is much easier for collusion to take place."

The park, managed by national waste agency WasteServ, is estimated to have cost around €8 million, with actual contracts awarded amounting to €6,920,000 and €890,000 in direct orders. These contract variations and made up around 40% of the actual expenditure incurred to-date.

Over €500,000 in direct orders were approved by the ministry for resources and rural affairs just a few weeks before the park was inaugurated by prime minister Lawrence Gonzi on 24 February, barely two weeks before the general election.

In December 2012, a €294,772 contract was directly awarded to Elbros Construction Ltd for the supply, delivery and maintenance of the playgrounds. A few weeks later, a contract was directly awarded to Schembri Barbros Ltd for electrical works for the belvedere, worth €17,685.

Two weeks before the inauguration, a further three contracts were awarded, with the largest direct order, worth €133,019 going to Elbros Ltd for electrical and teaming works for water features.

The other two contracts were awarded to F. Zammit Nurseries for planting and maintenance, costing €59,910 over three years and a €57,820 direct order to 3 Bees Joint Venture for supply and lay crazy paving.

While the procedures for direct orders appear to have been largely followed, the report pointed out "evidence to suggest that recourse to variations and direct orders may have been more expedient than reflective of urgency we are now not in a position to verify whether this reflects common practice or coincidence and in either case how widespread it was."

But the MEU said it did not have definite proof as to whether this was due to negligence, malpractice or more serious motives. "If this was the fruit of deliberate practice it is likely that most traces would have been removed at the time."

The MEU suggested that all future large-scale capital projects should be independently audited during the course of delivery.

As an example, the report said that the rationale for the issuance of a direct order for the plantation and landscaping at Sant' Antnin Family Park quoted 'sensitivity of this site' as justification - however, this 'sensitivity' was not defined.

Moreover, the report pointed out that urgency was often quoted by WasteServ, "however this urgency is relative for example if during construction one encounters unforeseeable problems that need to be addressed and without which the project can not continue is urgent. However, delaying the procurement process to such an extent that no time is left until the scheduled opening date is not as urgent unless there is a particular event that has already been scheduled and for which funding has been committed."

The report concluded that a number of direct orders fell in the latter category and could have been delivered through the tendering process had adequate planning taken place, such as in the case of trees and shrubs, and play equipment.

For example, although planning approval for the play area was already in hand in December 2009, an eleventh-hour direct order for €300,000 was issued on 10 December 2012.

And a €200,000 direct order for planting and maintenance of trees was issued when the government's own PARKS department was not even approached to deliver this work. "Government could have procured the trees and their planting at a cheaper rate had supply and maintenance deliverables been kept separate, and even cheaper had maintenance been kept in house."