Muscat questions previous administration’s decision to ignore switch to gas

The Prime Minister has questioned a decision by the previous administration to ignore an LNG proposal, made directly to then prime minister Lawrence Gonzi and two Cabinet members in 2009.

Labour leader Joseph Muscat accused the previous administration of failing to reduce energy bills despite knowing that it was a possibility.

“The PN government could have lowered electricity bills but it chose to keep making use of heavy fuel oil. They used to call the energy project an ‘Alice in Wonderland’ when they knew it could be a reality,” Muscat said during a phone-in on ONE TV.

Speaking to MaltaToday, entrepreneur Paul Apap Bologna confirmed presenting an LNG proposal to the government in 2009. He said, “the authorities at the time had listened with interest but there was no follow-up”.

Apap Bologna is a director in GEM Holdings, a shareholder in the Electrogas consortium. He denied having had any pre-electoral discussions on energy projects with the Labour or Nationalist parties. Apap Bologna insisted that the 2009 concept was “significantly different” to the current LNG project: they were looking at a much larger power plant – 400MW or larger – with plans to export energy.

“The confirmation that a presentation was directly made to a government also raises questions on how a document ended up in the hands of a political party. Simon Busuttil, who talks so much on good governance, has confirmed once again that there existed no separation between the party and the government,” Muscat told the ONE TV audience.

The Labour leader will be addressing a mass meeting later on this afternoon in Valletta to celebrate Worker’s Day.

“There is no better way to celebrate Worker’s Day than with a record low level of unemployment and high economic growth,” he said.

Muscat, who this week decided to retain Konrad Mizzi as a minister without a portfolio, is expected to deliver a message focusing on the achievements of his government and the plans for the coming two years. His decision on Panama Papers is not as popular within the parliamentary group but the Prime Minister has argued that he took the decision he believed to be in the “best interest” of the country.