Silence over De Marco ’s property works ‘not an option’ – Labour

Silence over PN deputy leader for parliamentary affairs Mario de Marco’s decision to effect a late payment on works carried out for him in back in 2011 at home by a contractor, is “not an option” for Opposition leader Simon Busuttil, the Labour said in a press conference today.

De Marco admitted with MaltaToday that he had effected a €34,000 payment with Redmap Constructions, a company whose owner Pierre Sladden was associated with the controversy concerning offshore companies in the British Virgin Islands and Progress Press contractors.

The timing of the payment, carried it in three payments over March and April, coincided with the resignation of Allied Newspapers’ managing director Adrian Hillman, after the Allied group – owners of Progress Press – launched an inquiry over allegations of kickbacks.

“The timing raises more questions. De Marco himself was responsible of MEPA: why didn’t he seek to establish the relationship with the contractor as that of a client seeking a service? Where is the contract of works? Why were no part payments done? Are we to believe that the contractor for years resisted ‘pressures’ to receive payment only to suddenly give in? And if the contractor had said he would wait for works to be completed, what changed now?” parliamentary secretary for planning Deborah Schembri told a news conference.

De Marco has defended his position by insisting that he had repeatedly asked the contractor for an invoice and that he was never in a hurry for the completion of works, which are still ongoing.

Flanked by backbencher Luciano Busuttil, Schembri said De Marco should follow junior minister Ian Borg’s example and table a copy of the contract of works and bills of quantities. De Marco said works on his property were carried out sporadically. Schembri however insisted that a contract was not just about deadlines and timeframes.

“It establishes the works and payments to be done, especially if works are going to be done over a long period of time and the parties wanted to ensure that their side of the agreement is covered. All this gives rise to questions, including whether there were really plans for payment,” Schembri added.

Schembri said that the documents tabled in parliament by Borg confirmed how the contractor usually operates. “By Simon Busutill’s yardstick, he now has a lot to answer for.”

PN reaction

In a reacton, the PN accused Labour of diverting attention on the Panama Papers revelations that had placed energy minister Konrad Mizzi and the PM's chief of staff Keith Schembri under pressure for holding offshore companies.

"It's the oldest game in politics but a useless one in the face of a crisis of corruption that is tarnishing our country's name, especially of the financial services industry... De Marco used the same contractor employed by Ian Borg, whose house permit at the Santa Katerina valley was said to have been obtained deviously. Joseph Muscat must have some cheek when saying De Marco did something wrong by employing the services of this contractor," the PN said in a statement.

The PN said Muscat should explain how his own house permit in Burmarrad was issued in record time under the Sant administration, and to publish invoices for the work that was carried out in his house. "He should also declare who paid for his holiday in Dubai last month," the PN said referring to a family holiday the prime minister went on.