Former Enemalta CEO sheds light on disagreements with finance ministry

Former Enemalta CEO David Spiteri Gingell was tasked with carrying an overhaul of the state corporation based on the premise that he would do all he had to do. But despite Austin Gatt's brief in 2007, Spiteri Gingell faced incessant hindrance from the ministry of finance, Spiteri Gingell claimed.

Between one memo and another to the finance ministry, "much blood was shed", Spiteri Gingell told the parliamentary Public Accounts Committee.

Spiteri Gingell, who had already been involved in Enemalta under the Sant administration when he was tasked with carrying out a strategic management audit of Enemalta, found that nothing had changed between 1997 and 2007.

"Not even the Subbuteo turf curtains were changed," he told the Public Accounts Committee analysing the Auditor General's report on Enemalta's fuel procurement policy.

So when he took over in 2007, prepared to turn Enemalta into an efficient corporation, Spiteri Gingell required a robust management infrastructure. But 11 months later, not even one person had been recruited leaving Spiteri Gingell up in arms and deciding to resign.

In a memo he sent to the Enemalta board in February 2008, Spiteri Gingell reiterated the same issues he kept on flagging during the previous six months: its weak management support infrastructure had to be strengthened. "The finance division didn't even have enough accountants to chase debtors," he told the PAC members.

"The Corporation is weak in terms of a management support infrastructure. Graduates in various disciplines that are essential for the proper management of the corporation are scarce. In certain positions, such as for example, accountancy the Corporation is not succeeding to recruit staff leaving it exposed to meet basic fundamental work let alone to plan for new important changes that will affect the corporation: carbon trading, debt management et al," the memo read, suggesting the introduction of an undergraduate trainee scheme.

But despite the Corporation's CEO plea to the finance ministry to enroll more personnel, the call fell on deaf ears, prompting Spiteri Gingell to resign. "It was a waste of time... decisions which should be taken by the CEO were taken in Strait Street."

Before the 2008 general election, the minister for finance was former Prime Minister Lawrence Gonzi while Tonio Fenech was the finance's parliamentary secretary. Spiteri Gingell says his correspondence and meetings were with Fenech, and that he couldn't accept arguments that investment in management and human resources couldn't be carried out.

The cost of having a basic organization design would have cost 2.5 million euoros, Spiteri Gingell said. "But the cost of not doing it is much higher."

Spiteri Gingell's clashes with the finance ministry reached a point where he not only resigned from Enemalta without having another job, but also resigned his position at MITA in 2008.

"I would still have had to deal with the finance ministry," he told the PAC. He however noted it was "sweet irony" that Enemalta was then transferred to the Finance Ministry.

"They were now facing the problems which I faced. I don't think before they understood the extent of Enemalta's problems and I believe that finally, after my resignation, they started to get a grasp of the real situation."

Spiteri Gingell had words of praise for Austin Gatt, completely belying claims of political interference: "We had a good working relationship and we respected each other. He knew how I worked and never interfered in my work. For Gatt, it was a no-go to even ask him for advice."