In the Press: Skanska cited waiver to refuse paying €200,000

Malta Today

In 2011, Swedish construction giant Skanska informed the Foundation of Medical Services (FMS) that it would not be honouring a claim in the repair of faulty reservoirs at Mater Dei due to a waiver agreement the FMS had signed in 2009. This happened after the FMS wrote to Skanska Malta Joint Venture (SMJV) to inform them it would be withholding an outstanding €200,000 balance to cover the cost of repairs for faulty reservoirs at the hostpital as a result of the use of low-grade concrete.

Illum

The government gets one step closer to finding a solution to the controversial Zonqor development project. Following pressure from various entities and groups, Prime Minister Joseph Muscat stated that he was willing to find a compromise over the project. The government has also expressed anger at Labour MP Marlene Farrugia’s position, as she seems bent on embarrassing the government. Farrugia also recently revealed she was interested in the position of environment minister.

The Sunday Times of Malta

The government paid €1.65 million for half ownership of a property in Old Mint Street Valletta. The building, which houses a school and government offices being used by the building industry consultative council, was bought for a fraction of the price just weeks earlier, and it is part owned by Mark Gaffarena. The Gaffarena family has been at the centre of a controversy over an illegal petrol station in Qormi, and it is said, that he bought the property knowing the government would expropriate it. The newspaper reports that Gaffarena made a profit of €685,000 in less than two months.

It-Torca

The controversial agreement between FMS and Skanska and Blokrete, signed in February some six years ago, already included an agreement between the two parties to end any pending issues between them. This revealation sheds more suspicion on the necessity of the controversial waiver which exempts the contractors from any responsibility over past and future misdemeanours. The newspaper also points out that Paul Camilleri, associated to the FMs also had close ties to former prime minister Lawrence Gonzi. He is also married to deputy leader of the Nationalist party Mario De Marco’s sister Fiorella.

Kull Hadd

The Labour Party’s claim was validated by the Constitutional Court, which annulled a decision to give two additional Parliamentary seats to the Nationalist Party. The court decided that PL should not have been excluded from the case and that the case should be heard all over again from scratch. PN chose to attack the institution for its decision.

Il-Mument

The government is not looking for alternative sites for the Jordanian investment and construction of the American University of Malta at Zonqor point in Marsascala. Prime Minister Joseph Muscat made an agreement with the Jordanian investors behind everyone’s backs. Shadow environment minister Marthese Portelli said that the development at the ODZ site is raising many questions including environmental issues, credentials of investors and lack of transparency among others.

The Malta Independent on Sunday

The paper reports that the supposed waiver exonerating Skanska from damages due to faulty concrete at Mater Dei Hospital does not actually exist. The controversial waiver actually referred to a settlement of mutual disputes between the FMS and Skanska Malta, but it was not a waiver from the possibility of future litigation over work carried out at hospital. The agreement actually shows that the government still has legal channels available through which it can claim damages.