UPDATE: Labour says EC investigation unrelated to irregularities in Auditor General's report on Delimara

Proposal to be submitted to the College of Commissioners at the earliest possible date for infringement proceedings against Malta to be closed on Delimara procurement.

27 November 2010, 12:00am
by Matthew Vella

4 min read

Adds Labour reaction 5:48pm.

The Maltese government has announced it was informed by the European Commission that, following its analysis of its reply to a letter of formal notice on emission law changes that allegedly benefitted a firm in the award of the €200 million Delimara power station contract, a proposal is to be submitted for infringement procedures to be closed.

“A proposal is to be submitted to the College of Commissioners at the earliest possible date for these infringement proceedings against Malta to be closed,” the Department of Information said.

In a reaction, Labour said the European Commission had not investigated any of the irregularities in the Delimara procurement process that had been mentioned in the Auditor General’s report. “In its letter of formal notice to the government, the EC did not say it would investigate the irregularities outlined by the Auditor General and only those aspects that might have contravened EU law.”

In its letter of formal notice, the Commission had claimed that changes in emission laws in 2008 had been made a few days before the expiry of the deadline for the receipt of the final bids for the Delimara power station extension. “The change was not necessary to comply with European legislation as the Maltese authorities seemed to indicate [but] to benefit one of the exceptions to the applicability of the Large Combustion Plant Directive,” the Commission said.

It added that the new emission limits only applied to diesel engines and not to gas power plants, meaning this disadvantaged a bid by Israeli firm Bateman, which was proposing a cheaper, gas technology.

The DOI today said the Commission had analysed both the report of the Auditor General of April 2010 and Malta’s reply dated 4 August 2010.

In its reply to the EC, the government said it had changed the legislation (emission from large combustion plants) on 4 January 2008 and sent all short-listed candidates for the Delimara turbine extension a clarification notice on 7 January 2008.

The government also said the clarification notice extended the period for submission of final bids and provided for a further session of negotiations “with a view to allowing all bidders to update their positions in the light of the amended legislation.”

“The modifications… [were] not an arbitrary or discriminatory change in technical specifications by Enemalta, but was on the contrary a lawful rectifications necessitated by the change in national legislation.”

In the letter, signed by foreign minister Tonio Borg, the government said that none of the bidders lodged an action before the Courts of Malta as they were entitled to do if they felt that their right to an effective review under the Public Contract Regulations had in any way been prejudiced.

"Bateman Litwin lodged a judicial protest and a counter protest lodged in reply by the authorities... [but] the protest lodged by Bateman was never followed by a formal legal action by either Bateman or the other bidders... in fact there has not been any attempt by a bidder or any person having an interest in the contract to try to halt the signing or the execution of this contract."

Labour reaction

On its part, Labour said that in its report, the EC did not investigate how the change in emissions law was made on the instigation of BWSC "so that it could qualify for the contract and eventually win it. Nor did it investigate the boasts of the BWSC agent that he had high-level political contacts that could win him the contract.”

Labour added that other allegations not within the EC investigation’s remit was the BWSC’s agent previous work for consultants Lahmeyer, who evaluated the bids; and the government’s policy change to go for heavy fuel oil instead.

"The Auditor General found a number of irregularities that should have warranted the reissue of the tender, but that he had no conclusive proof of corruption because of the lack of cooperation from central figures. If the government has nothing to hide on the BWSC contract, it has to allow the Public Accounts Committee to listen to all witnesses who can throw light on the award of this contract."

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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No on is guilty until proved guilty. But because the prosecution is not able to prove that someone is guilty does it mean that no guilt has been performed. Malta has been the best country with the least corruption. Does anyone believe that there is no corruption. How can you explain that the EU Commission report states that the original bids were valid when the BWSC bid was not eligible at the time and the PN had to change the law. If Malta has a law that divorce is not legal; do we have to abide by EU law and introduce it. If anyone applies now; by today's legislation is it valid? How can one explain that no project has been able to finish within budget. Mater Dei no corruption. How can one prove corruption when all the extras are approved. Rates and Quantities are difficult to check when the project is on. How can you check these when the project has been complete for a number of months/years. The only way to try a new management. This management has had to introduce exorbitant Water and Electricity tariffs/taxes and still the deficit and the borrowing are without precedent. And this without proper accounts by accruel. I conclude that if this was the only project with smoke of corruption maybe I will be sceptical; but with every project no one is responsible for time and money and with the financial situation from bad to worse..kif tista ma temminx?

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Let's face it ! The PL is like a dog that barks but is never brave enough to bite. To make matters worse, it's always barking at the wrong tree. The leadership of the PL is so detrimental to the well being of this nation, that it should apologise to the citizens of this country for it's own incomptetence. In 2 years of accusations and mud slinging they have not been successful even once to clearly prove political maturity and have always allowed GONZIPN to shove them down the polical slippery slope. They have failed to win any of these issues, politically or diplomatically as the EU continues to side with this administration while the citizens and tax payers of this island continue to remain burdened by a government without any opposition. The sad that the Maltese has given the PL a majority in the EU elections and once again the PL leadership continues to flop in it's EU representations.

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How arrogant the PL people are. The Auditor General and the EU said there was no corruption. So these two institutions are wrong for thhe PL. Grow up as the people will notice as to who is the liar.

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I think it has been naive to expect the EU to inquiry about what type of air the Maltese are going to breath; its for the Maltese to see to it! Secondly, as a Belgian visitor, I must say that only fools and horses believe that there is no corruption in Belgium, France, Italy, and Malta for that matter.It is you the Maltese who are going to pay for the bills of mismanagement, corruption and polluted air; garbage in garbage out!

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My dear friends, Personally, I think that who ever thought the the EU would find something fishy about BWSC was TOTALLY wrong. The only reason is that the PN is VERY strong to lobby and exchange cards from underneath the table. There is no doubt that a very large majority of the Maltese people are sure that the BWSC saga is full of corruption. Only those with their fingers in it think else. Do you remember Verhoegen addressing George Vella and telling that, IF NEED BE he will (VH) do everything for the PN to win the general elections just after the EU referendum? These ARE the kind of friends the PN have!! I have no doubt that if the current situation remains the same until the next general election, Joseph will win with majority. BUT THE PL WILL FIND IT V E R Y DIFFICULT TO ACTUALLY GOVERN WITH ALL SUCH SCORPIONS AND COBRAS PLACED IN STRATEGIC PLACES IN THE DIFFERENT DEPARTMENTS, BOARDS, AUTHORITIES AND INCLUDING THE EU.

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My dear friends, Personally, I think that who ever thought the the EU would find something fishy about BWSC was TOTALLY wrong. The only reason is that the PN is VERY strong to lobby and exchange cards from underneath the table. There is no doubt that a very large majority of the Maltese people are sure that the BWSC saga is full of corruption. Only those with their fingers in it think else. Do you remember Verhoegen addressing George Vella and telling that, IF NEED BE he will (VH) do everything for the PN to will the general elections just after the EU referendum? These ARE the kind of friends the PN have!! I have no doubt that if the current situation remains the same until the next general election, Joseph will win with majority. BUT THE PL WILL FIND IT V E R Y DIFFICULT TO ACTUALLY GOVERN WITH ALL SUCH SCORPIONS AND COBRAS PLACED IN STRATEGIC PLACES IN THE DIFFERENT DEPARTMENTS, BOARDS, AUTHORITIES AND INCLUDING THE EU.

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Mr. Briffy we have not lost our tongue, we lost what little faith we had in the EU. Only a corrupt government sees everything above board. Your pn was born in corruption and swims in corruption and lies. In a recent interview by the money is no problem genius declared that "Is- sewwa kien element ewlieni fil karriera politica tieghi".Mr Fenech Adami seems to suffering with amnesia like the rest of your pn buffoons.

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This is rich david lexicon!

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I am much ashamed now to be part of the EU. I did not know that the EU is corrupt as GonziPN. I am sure that as our Government lobbied with Sarkozy to make pressure to the Commission to disregard infringement procedures of the BWSC saga, GonziPN have powerful people in the majority right-wing EU Commission and EU Parliament (EPP majority) to close the infamous contract of the BWSC. To George Cremona I would like to say that every Government has some kind of corruption, MLP and PN because governments are made of people who are prone to evil desires. However the present Government's corruption compared to PL (MLP) 'corruption' is comparing the Empire State Building to a one storey house respectively. So with the above news, we confirm that EU Commission is corrupt one mega monster.

Ian Sammut •

@Joe South "The only investigation that matters has to come from a PL govt. appointing an independent prosecutor with the power of calling all witnesses and placing them under oath with severe penalties for perjuring themselves." The PL (MLP) had done such a thing in the past when Alfred Sant as Prime Minister appointed the late Dr. Edgar Mizzi to investigate various corruption allegations made by the then Labour Opposition led by Alfred Sant himself. And what did the investigations find? SMOKE, SMOKE and SMOKE. Exactly what the Auditor General and the EU Commissiona have again found in the allegations made now by Alfred Sant successor Joseph Muscat. It seems that the PL did not learn anything from its past blunders.

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@ Joe South....Is our Labour party the only party in the world which is above corruption?

Alfred Galea •

iffy, the reason being that there's not too much the EU can do seeing that the project was started a long time ago.....what were they gonna do?? Stop it?? The only investigation that matters has to come from a PL govt. appointing an independent prosecutor with the power of calling all witnesses and placing them under oath with severe penalties for perjuring themselves. Do you expect a corrupt govt. like the EU to rule against one of their own??

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Third line in the last paragraph; 'lack of corruption" or 'lack of cooperation'?

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How come everybody lost his tongue?