‘Millions lost without US navy repairs’ says Palumbo

The Italian operators of the dockyard in Cospicua have told MaltaToday the lack of the controversial Status of Forces Agreement (SOFA) between Malta and the US is costing the company millions in potential revenue from the repair of military vessels. 

Managing director Antonio Palumbo said the elusive agreement between Malta and the US cost his shipyard some €30 million in revenues over the past five years.

“US authorities have officially expressed their desire to repair their ships here,” Palumbo said, but without the agreement the US Navy must take its ships for repair in other Mediterranean dockyards.

But both Labour and the Nationalist parties are wary of conceding to the onerous conditions of the SOFA, despite the economic benefits from ship-repair for naval fleets.

Palumbo told MaltaToday that during an inspection of his shipyard some years ago, US military officials said the shipyard was “logistically very valuable”, saying it would benefit the Maltese economy to have US military ships repaired in Malta.

“We have never raised the issue with this government as it is a political issue beyond our competence,” Palumbo said of the delicate matter.

Palumbo has a 30-year concession on the shipyards, but Palumbo had been told in unequivocal terms that Malta would not sigh a SOFA any time soon. “There’s a big tender coming out in January which we’ll bid for, however the Americans will obviously exclude us,” Palumbo said.

Both sides of the House of Representatives are known to be in agreement over red lines laid down in 2012 by then foreign minister Tonio Borg over visiting foreign servicemen. MaltaToday understands the cross-part agreement stands to this day.

A Status of Forces Agreement takes place with the United States to station its military forces in the host country. Essentially it establishes the rights and privileges of foreign personnel present in a host country in support of the larger security arrangement.

Irrespective of the potential revenue visiting naval ships brings, a SOFA is controversial because it means granting US military personnel legal privileges and diplomatic immunity, which could prevent the host country from taking legal and criminal action against soldiers.

Just three weeks ago in an interview with The Times, General Workers Union boss Tony Zarb called on the government to hold a wide-ranging consultation process over the matter. He said Malta “should not accept work under all circumstances, nor at any cost” when questioned about the SOFA.

Zarb said he opposes hosting military ships and aircraft involved in wars, but did not rule out a discussion between government, opposition and unions. “A solution needs to be found so that revenue is not lost.”

The SOFA with Malta has been a priority for the US government in the past years.

Soon after the appointment of ambassador Gina Abercrombie-Winstanley in 2012, it was reported in that year that the PN government and Labour opposition were in agreement over protecting Malta’s national interests with regard to visiting foreign servicemen.

Tonio Borg and then shadow minister George Vella plainly refused to cede jurisdiction on crimes and offences committed by visiting United States military personnel. 

Following a declaration by Abercombie-Winstanley that “the US would love to have a Status of Forces Agreement with Malta”, Borg and Vella had come out in agreement in putting the country’s national interest above economic gain.

Although Abercombie-Winstanley had made it clear that “this is a decision to be taken entirely by the government and the Maltese people”, Borg had replied that he would not cede jurisdiction over any offences committed on Maltese soil by foreign nationals – one of the major sticking points in any SOFA agreement.

When Malta ratified the Rome Statute of the International Criminal Court, which enforces the arrest and prosecution of people for crimes committed outside their countries of origin, the Bush administration suspended its regular military funding to the Armed Forces of Malta, when Malta refused to give immunity to US servicemen.

The United States, which is not a member of the ICC, demanded that participating states sign bilateral immunity agreements (BIAs) to protect Americans from the jurisdiction of the ICC.

Malta lost its US foreign financing in 2004 because it did not sign the BIA.

The US still forwards international military education and training funds for the AFM. 

In its congressional budgetary justification, the State Department’s office of foreign assistance said that Labour’s election in 2013 did not change “the largely bipartisan political consensus for maintaining Malta’s constitutionally-mandated neutrality”.

Despite Malta’s neutrality cause, the island has hosted military assets from EU member states and the United States as a support base for missions against the Gaddafi regime during the Libyan civil war in 2011.