Government rendered MRA ‘ineffective’ – Pullicino

With the election of a Labour government, the Malta Resources Authority was politicized and rendered "ineffective", Nationalist MP and former resources minister George Pullicino said today.

Addressing parliament on the budget allocated for the Ministry for the Energy, Pullicino said MRA was not carrying out the role it was set up to do: that of carrying out checks and balances, including on government's work.

"The politicization of MRA has rendered it ineffective to the point that the same Authority remained quiet on the selling of Enemalta stakes to the Chinese," he said.

Pullicino said that in breach of its electoral promise, the government had chosen to privatise Enemalta, by selling stakes to the China Power Investments Corporation.

Urging the government to publish the memorandum of understanding, Pullicino said it was not clear when discussions with the Chinese company actually started.

"Was Shiv Nair involved in this agreement? Despite having been twice blacklisted by the World Bank, yet he still accompanied Konrad Mizzi to Qatar. Was Mizzi's wife involved as well? These are all questions we have raised and which have all remained unanswered," the former minister said.

Casting doubts on the government tender for gas supply and purchase agreements, Pullicino questioned why "Edison and Daewoo had suddenly turned cold on the tender".

The South Korean Daewoo and the Italo-French Edison - the second largest power producer in Italy and in Greece - were among those axed from the original list of 19 bidders, with the tender finally being awarded to ElectroGas.

Electro Gas Malta was the only company which included direct Maltese participation through GEM Holdings - a company owned by Gasan Group Limited and Tumas Group Limited.

Pullicino also said it was not true that families would be benefiting from an average of 25% reduction.

"A single household will be saving €80 a year, translating into a 20% reduction on its consumption. And this figure is equivalent to what Konrad Mizzi's wife will be earning by the hour. What a coincidence," Pullicino said.

He argued that a family of two would be saving €101 in one year. "But if one of those two smokes, what was saved from utility bills will be spent on cigarettes thanks to the increase in excise duty on tobacco," he said.

Turning to ARMS Ltd, Pullicino questioned why two chairpersons and two CEOs had been changed in a space of seven months. He also alleged there was "constant friction" between the chairman and the CEO of the Water Services Corporation.

"How many board meetings at WSC were held? Were there any difficulties for the members to meet? Unfortunately, there is a clique within a clique at the WSC, evident from the promotions being given," Pullicino said.

He also said that while money was found to accommodate "close friends", yet no money had been allocated for the water savings kit which had already been included in budget 2013.