We refer to the article “Conflict of Interest”, written by Dr Anna Mallia and published in the issue of Malta Today Midweek (23 September) and have been instructed by CVA Technology Company Limited (“CVA”) to respond to a number of allegations contained in the same article.
At the outset, our clients categorically deny your columnist’s allegations that there may exist a conflict of interest as a result of their participation in the Expression of Interest issued in connection with the Tender for the Service Concession Contract for the Provision of Scheduled Bus Services in Malta.
Dr Mallia claims that this alleged conflict of interest arises out of the fact that, “the Transport Authority has a finger in the [sic] CVA Technology Company Limited” and that, “CVA is not an ordinary company : it did not make money and is not making money by doing business, only by collecting unjust taxes from us”.
In this respect, your attention is drawn to the fact that the only relationship between our client and the Transport Authority is that arising from the public service contract, pursuant to which CVA were engaged to develop, install, commission and operate the CVA system in Valletta in consideration of the payment of a fixed annual consideration, which contract was awarded to CVA following an invitation to tender issued by the ADT.
In essence, Dr Mallia suggests that once a contractor has been awarded a contract by a public authority, that same contract is precluded from participating in any subsequent procurement procedures! Indeed such a distorted interpretation of the notion of “conflict of interest” would only lead to a situation where procurement procedures would only be open to those who have been unsuccessful in past tender bids!
In her article Dr. Mallia also stated that CVA is “…just getting richer at our expense, collecting the car space it ‘rent us’ in Valletta, and reverting a percentage of its revenue to the ADT”.
This is, again, a far cry from the truth. Pursuant to the above mentioned agreements, CVA collects the access fees payable by owners of vehicles that access the CVA zone in Valletta (which fees are established by law and are published in the vehicle Access Zones [Control] Regulations, 2007, S.L. 65.31) on behalf of the ADT and remits the full amount collect to the ADT within one business day from receipt thereof.
Naturally, CVA receives an annual consideration for the provision of the services rendered, but this is a pre-established fee that is not dependent on the amount of vehicles that are charged for access into the CVA zone!
Another issue that must be addressed is Dr Mallia’s statement that the objects clause in the Memorandum and Articles of Association of CVA does not permit CVA to participate in the tendering procedure in connection with the public transport system. This bold statement is sustained by a quotation of what Dr Mallia refers to as the “objectives of the company”. Your readers’ attention is here drawn to the fact that these so-called “objectives” as quoted by Dr Mallia constitute one out of the nine sub-paragraphs that make up the object clause of the company and that a reading of the object clause in its entirety makes it more than clear that the intended participation in the tendering procedure is within the objects and powers of the company.
Finally, while having no direct relevance to the issue of interest, we also feel the need to address two other inaccurate statements, namely:
i. CVA Technology Company Limited was registered on 25 January, 2006 and not on 3 July,2006 as stated in the article; and;
ii. Pater Holding Company Limited is no longer a shareholder in CVA Technology Company Limited.
Any comments?
If you wish your comments to be published in our Letters pages please click button below. Please write a contact number and a postal address where you may be contacted.
Download front page in pdf file format
All the interviews from Reporter on MaltaToday's YouTube channel.
