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Kurt Sansone
Government is investigating a number of complaints lodged with the Malta Tourism Authority over the behaviour of its chairman John C. Grech in relation to contracts handed out by the MTA to companies in which Grech has an interest, MaltaToday can reveal.
Asked by MaltaToday what course of action government had adopted on the complaints, Tourism Minister Francis Zammit Dimech said: “In response to your queries, I would like to inform you that Government is investigating the complaints referred to.”
Described as serious by operators in the tourism industry, the complaints concern contracts other than that referred to in last Sunday’s Kullhadd about power boat races.
The Minister, however, did not answer questions related to the value of the contracts on which complaints have been made and whether he has spoken to Grech on the alleged conflict of interest.
John C. Grech has been caught in a storm with Labour newspaper Kullhadd, which last Sunday revealed Grech’s alleged conflict of interest in a contract worth thousands of liri that was to be awarded by the MTA.
Grech represented a company, ‘Big on Events’ that was talking to the MTA about the possibility of organizing three F1 power boat races in Malta. The company was asking for around Lm350,000 for the organisation of the races over the next three years.
However, on Wednesday, Grech told One News that he had severed his contacts with the power boat company after it became apparent that he could have a conflict of interest.
Attempts by MaltaToday to contact Grech on Thursday proved futile and the newspaper was told to phone his office on Monday.
Meanwhile, the Malta Hotels and Restaurants Association has asked government to carry out an audit of the MTA’s operations. The MHRA threatened to withdraw its participation on the authority’s board of directors if government failed to carry out the audit.
It is understood that Grech’s conflict of interest has also raised eyebrows at Castille and pressure has been mounting on government to replace Grech.
The Chairman may be eventually replaced as part of the series of new appointments likely to take place when Lawrence Gonzi is sworn in as Prime Minister.
kurt@newsworksltd.com
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