BWSC contractor Vassallo Builders engages former Enemalta CEO on consultancy jobs

Vassallo Builders Group, the local contractor for Danish firm BWSC – who won the controversial €200 million contract for the Delimara power extension –contracted the former Enemalta chief executive who was on the adjudication committee on the contract, MaltaToday has confirmed.

David Spiteri Gingell confirmed with this newspaper that after he stepped down as chief executive of Enemalta, he was “approached” and “contracted” to conduct consultancy work for Vassallo Builders Group, soon after he concluded his assignment on the adjudication committee for the Delimara extension.

The former CEO’s consultancy firm has carried various assignments for the company, whose owner is magnate and PN donor Zaren Vassallo, and whose directors include the former Enemalta chairman Alex Tranter, who admitted to a conflict of interest in the Delimara tender process.

The European Commission has accused the government of having led an irregular procurement process for the 144MW Delimara power station extension.

The EC raised serious doubts on changes in emissions rules, which it says were carried out to benefitDanish firm BWSC’s bid for a diesel-powered engine that had been previously ruled out by emission laws.

Spiteri Gingell had previously claimed that the changes to the emission rules had been carried out to comply with EU law, but the Commission is claiming the rules were changed to suit diesel technology only, and not gas-powered engines.

In replies to MaltaToday, Spiteri Gingell – who is currently drawing up legislation for government into reforming the Pensions Act – explained that he is chief executive of LoQus Business Consulting Ltd, of which he owns 25% of company shares.

LoQus was incorporated in October 2008, but up until April 2009, Spiteri Gingell says the firm was not involved in private work or in marketing itself within the private sector given his assignment to manage the Delimara tender adjudication.

“Once my involvement was concluded in early April 2009, LoQus Business Consulting Ltd started a process to position itself in the local private sector market,” Spiteri Gingell said.

In September 2009, LoQus was approached by Vassallo Builders “to submit a quotation to carry out a strategic review of the Group.”

LoQus was contracted the assignment, work on which initiated in October 2009, for a €4,000 fee. The assignment was completed at the end of November 2009.

“This work was carried out by LoQus openly, with meetings held, amongst others, with the Group's bankers and auditors.”

In March 2010, LoQus was then invited by Vassallo Builders to sit on the strategic board assigned responsibility for the implementation of the strategic report. The board meets once a month and the payment fee is €200 for every attendance.

In August, Vassallo invited Loqus to draw up an information systems strategic plan at €70 an hour.