The Lahmeyer connection and the rot inside Delimara
The German company Lahmeyer International (with strong links to Mr Joseph Mizzi) had a key role in the decision-making process which led to Danish company BWSC (with Mr Joseph Mizzi as its local agent) to be awarded the contract to extend the Delimara power station last April. In a feeble and dishonest way, the PN government has tried to downplay the role of Lahmeyer International.
The crucial role played by Lahmeyer International emerges clearly in the Enemalta Technical Evaluation Report and the Report of the Adjudicating Committee that selected BWSC. The Technical Evaluation Report states: “In order to verify the plausibility of the proposed airborne emission abatement technologies, an independent third party technical assessment was commissioned by Enemalta through International Consultants, Lahmeyer International. The report confirms that the proposed plant and the performance data quoted by the Bidders were indeed plausible.” The Bidders referred to in this statement are BWSC and MAN, but Lahmeyer makes it very clear that it considers BWSC’s plant superior to that of MAN.
The February 2009 Report by the Adjudicating Committee echoes the same statement: “A technical assessment was sought from an independent international consulting firm to verify the plausibility of the proposed airborne emission abatement technologies. The report confirms that the proposed plant and the performance quoted by the Bidders were indeed plausible.”
Reporting to the Public Accounts Committee in Parliament last May, the Permanent Secretary to the Ministry of Finance quoted the submission by Enemalta to justify why the contract was awarded to BWSC: “Its emissions abatement plant is a ‘prototype combination’ although something similar to it is used in Korea, but the technology of the parts that are being offered is already available. The plant proposed (by BWSC) was evaluated by the international consultants Lahmeyer International. These confirmed that what BWSC is proposing is indeed plausible.”
So it is very clear that Lahmeyer International’s recommendation was a decisive factor for the choice of the plant offered by BWSC. It is both feeble and dishonest of the PN government to try and downplay the key role played by Lahmeyer International in the process that led to BWSC being awarded the contract to extend the Delimara Power Station.
On Monday, April 7, 2008 at 2.50pm, Mr Joseph Mizzi sent an email to Mr Sobhi Haddar of the German company Norddeutsche Seekabelwerke GmbH demanding that he is appointed as their exclusive agent in Malta: “In my 43 years of career I made quite a number of agreements with big companies such as BWSC-Denmark and Lahmeyer-Germany, among others.”
It was completely unethical of Enemalta to have chosen Lahmeyer International as an “independent” consultant to assess BWSC’s proposal when both Lahmeyer International and BWSC have the same Mr Joseph Mizzi as their man in Malta. It was equally unethical of Lahmeyer International to accept to be appointed as an “independent” consultant in the adjudicating process of Enemalta. Not only because of its “agreement” with Mr Joseph Mizzi, but also because Lahmeyer International has been in joint projects with BWSC to build power stations. Faced with this evidence, I have no hesitation to repeat that the tendering process for the extension of the Delimara Power Station has been rotten from beginning to end. At every stage major decisions: changes in local environmental regulations, government policy and tender specifications were made to the advantage of BWSC. This plant has polluted our country even before it has started to operate.
I am informed that Enemalta paid Lahmeyer International €100,000 to produce the technical report ‘Emission Assessment of Diesel Generator Units and Combined Cycle Gas Turbines – Comparison’ on which the Adjudicating Committee based its decision to award the tender to BWSC. I am informed that Enemalta gave a direct order to Lahmeyer and a hefty fee of €100,000 has to be first cleared with the Minister, in this case Dr Austin Gatt. Why did Enemalta choose Lahmeyer International? What role has Mr Joseph Mizzi played in the choice of Lahmeyer International as the ‘independent’ consultant of Enemalta?
It is obvious that Minister Austin Gatt, Minister George Pullicino and the Prime Minister Laurence Gonzi have let this country down by giving Lahmeyer International such a key role not only in the process that awarded the tender to BWSC but also as consultant to Enemalta and the Malta Resources Authority in local energy policies. Last April, the Malta Resources Authority published ‘A Proposal for a New Energy Policy’ prepared by Lahmeyer International and, surprise surprise, it recommends the use of diesel engine for the new plants at Delimara as proposed by BWSC: “under current and foreseeable circumstances, a Combined Cycle Diesel Engine running on Heavy Fuel Oil with possibility of conversion to natural gas is the best option for immediate increase in local generation capacity.”
Lahmeyer International has a track record worldwide of writing technology assessment reports and carrying out environmental impact assessments to the advantage of its preferred bidder without caring for the hardship caused by the projects it is paid for to promote. Lahmeyer International has worked hand in hand with some of the most corrupt and brutal governments in the world, especially in Africa, Asia and Central America.
On February 18, 2008 the German MP Manie Van Dyk referred to the “shameful record of unethical business practices” of Lahmeyer International following the World Bank’s decision to blacklist Lahmeyer International for seven years (2006 to 2013) following its corrupt activities in the Lesotho Highlands Water Project. Lahmeyer International refused to co-operate with the World Bank’s investigation and has also refused to disclose details of other cases of bribery and corruption it has been involved in around the world.
At the moment, the Economic and Financial Crimes Commission of Nigeria’s Parliament is also investigating Lahmeyer International and 16 other companies over alleged corrupt practices in the building of power stations between 1999 and 2007 in Nigeria.
There is a common thread running through the companies benefitting from the award of the tender of the extension of the Delimara Power Station: the Danish BWSC, the German Lahmeyer International and the Finnish Wartsila, have all been involved in cases of bribery and corruption. According to European Union 2005 Public Contracts Regulations 2005, when companies submit their bids they are obliged to state whether they have been involved in cases of professional misconduct and corruption. When government gives a direct order to a company it should screen the company’s conduct and reputation.
We have a government with such low moral standards that it allows companies involved in cases of corruption, to the extent that one of them has been blacklisted by the World Bank, not only to get away with using unethical business practices to be awarded big contracts paid for by local tax payers but also defends them in the process. The PN used to say that those who do not fight corruption are also accomplices in corruption. But that was a long time ago.
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