News | Sunday, 23 August 2009

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Muscat, ‘middle-class, families paying for corruption’

Matthew Vella
Labour leader Joseph Muscat yesterday accused the Nationalist government of making people pay for its “incompetence, inefficiency and corruption”, in an interview with Orizzont editor Frans Ghirxi, in Gzira.
Muscat said the public would be paying €200 million for the proposed extension to the Delimara power station, adding that the technology would have to be changed within seven years due to obsolesce.
The Delimara tender was awarded to Danish firm BWSC. But the purchase of the diesel technology has been protested by Israeli bidder Ido Hutney Projekt/Bateman, which claims its gas technology is more environmentally friendly, and also cheaper.
Muscat also said BWSC was “privileged and had inside information” when it tendered for the award with its diesel technology, which was later followed by a demand from Enemalta Corporation to weaken emission laws.
Muscat said somebody “within government increased the permissible emissions by legal notice, so that the company could qualify for the tender award.”
Muscat also repeated claims that a middleman, who enjoyed favourable relations with Enemalta, would be paid 2% from the €200 million paid to BWSC for his services to the company.
“Corruption is a tax that has to be paid by Maltese and Gozitan families, as well as the middle class,” Muscat stressed. “It’s money wasted on corruption rather than aiding families.”
Muscat latched on to the recent €1 million fraud by VAT department officials. He said Lawrence Gonzi was aware of the shortcomings inside the department, referring to a report prepared by the Auditor General. “Despite being finance minister, Gonzi did not do anything about these problems.”
The Labour leader also said the country was facing a shortage of quality jobs. “Government itself is creating the recession in our country. It has increased water and electricity bills and doubled the price of gas. Government is not even achieving its own financial targets due to its lack of planning.”
Muscat said the country was experiencing a lack of economic stimulus. “Instead the government wants to invent new taxes. Gonzi’s economic cycle is solely linked to electoral reasons, and not with the real state of families.”
He also criticised the government for not accepting to reduce VAT on restaurants, despite an EU concession. Muscat said that in a meeting with the Malta Hotels and Restaurants Association, he was guaranteed that any VAT reduction would be reflected in their prices.

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