[WATCH] PN calls on government to publish €88m bank guarantee agreement

PN calls on government to publish €88m bank guarantee agreement • Video by Ray Attard

The Nationalist Party called on the government to publish the terms of reference of a “unique” €88 million state guarantee to cover a €101 million loan issued by Bank of Valletta to ElectroGas to build the new gas power station.

The government has said that the bank guarantee was a temporary solution, and necessary “in the national interest”. Finance Minister Edward Scicluna has confirmed that the guarantee was “unique” but not in breach of any EU State aid rules.

According to media reports, Scicluna justified the State guarantee as a temporary measure until Brussels gives its green light to a power purchasing agreement between Enemalta and Electrogas.

Addressing a press conference at the PN’s headquarters, deputy leader Mario de Marco called on the government to be more transparent.

“The government must immediately publish all contracts signed, including an agreement for the bank guarantee, the power purchase agreement with Electrogas, the agreements on the construction of the new power station and the agreement with Shanghai Electric Power,” de Marco said.

Flanked by shadow ministers Marthese Portelli, Kristy Debono and Claudio Grech, de Marco said it was important to know what will happen if the European Commission does not gives its clearance.

“Would the bank guarantee become perpetual? What would happen if the loan is not repaid? Who will make good on this loan?”

De Marco pointed out that the Chamber of Commerce had itself called on the government to give a detailed explanation. The Chamber said that an explanation on such a complicated matter would eliminate “any unnecessary doubts”.

Reiterating that Muscat had “tied his political career to this project,” Portelli accused the Prime Minister and Energy Minister Konrad Mizz of “using taxpayers’ monies to save their own skin”.

Concerns of an unfair level playing field were raised by Claudio Grech, who said the possibility of a state guarantee had not been mentioned in the original request for proposals.

“Potential operators failed to tender because they would have been concerned of not being able to raise enough money,” he said, adding that this was the first time that a government was raising a bank guarantee for a private project.

PN spokesperson Kristy Debono, said that the government should say whether it will become a norm for the government to aid private companies. She went on to ask whether the government was aware of the repercussions if the European Commission failed to recognise the agreement.

De Marco accuses Central Bank, National Statistics Office of doing Prime Minister’s bidding

In reply to questions about the suspension of two public officials who allegedly leaked sensitive information to former finance minister Tonio Fenech, De Marco accused the Central Bank and the National Statistics Office of doing Muscat’s bidding.

“I am not saying that an authority shouldn’t investigate … but this should because there is suspicion of wrongdoing and not because the Prime Minister calls for it. Since when do we act because the Prime Minister calls someone a spy?” de Marco said, asked whether the public officials had adhered to their work conditions.

He added that the emails published in a Sunday newspaper did not reveal anything sensitive. De Marco went on to accuse the government of political intimidation.