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Julian Manduca
The German ministry for Economy and Labour has suggested that tender processes in Malta are dubious, and reported that German and Dutch companies could be staying away.
With several international tender processes underway, the German ministry has suggested the Maltese authorities could be favouring Italian companies because of the financial protocol wherein Italy supports Malta.
Despite the seriousness of the claims, neither the finance minister nor the foreign minister would be drawn into commenting on the matter and questions put to the finance ministry this week remained unanswered despite reminders.
Among the tender processes that are expected to be hotly contested in the coming months are those for a new sewage treatment plant in Gozo and the installation of new hospital waste treatment plant at Mater Dei.
According to a report entitled - ‘EU eastern expansion: What will change for German SMEs?’ - by the German ministry, the Euro 90 million tender for the Mater Dei hospital equipment was awarded to Italian company INSO for “technical reasons,” after it was allowed to review its tender bid – something which is not acceptable in a tender process.
The award was strongly contested by competing bidders Simed from the Netherlands and German company Hospitalia also felt it has lost out unfairly.
One of the main complaints of Simed following the final award to INSO was that following the bids made by all bidders in the tender process the Italian company was allowed to use government offices and resources and was assisted to change its specifications so as to improve on its bid. The government never denied that INSO alone was allowed to change its bid.
According to the ministry’s report which is aimed at German SMEs and widely circulated, “Circles close to the Malta government explained the tender was awarded to the Italian company because Italy helped the Maltese economy at the end of 2003 with the renewed ‘Financial protocol.’ The award of the tender was a ‘reward’ for the Financial protocol.”
The report continues: “foreign companies in Malta doubt whether the allocation of tenders will be handled according to the EU regulations in the future.”
“For this reason too, German and Dutch companies are reconsidering their participation in public tenders, according to business circles in Malta.”
The tender for the new hospital waste treatment plant for Mater Dei is being contested by 26 companies including INSO and a company related to INSO, Invinig Valor Imprend Srl with its partners Anteco Srl and Motherwell Bridge Malta Ltd. INSO’s partners in Malta are Metodo Oxford. Also competing are five companies whose partners are the Polidano Group; while Advanced Industrial Systems, owned by AIS’s Mario Schembri, has shown interest with four companies.
The previous contest for the replacement of the St Luke’s incinerator ended abruptly when the winners could not supply the equipment when top company officials wound up in jail following fraud allegations. That company, or a new version of it, also called Sanitec, with its Maltese partners Sarrebico, is now once again back in the chase bidding to supply the equipment.
It has taken the authorities a full ten months to re-launch the tender process and following the submissions of interest in a questionaire, a committee has been set up to shortlist the best bids.
Government authorities however, seem determined to shroud the committee in mystery and will not release the names of the people selected.
julian@newsworksltd.com
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