Polidano to scoop €19m contracts, without audited accounts
The Polidano group of companies is in pole position for two tenders amounting to €19 million, despite not having yet deposited its annual audited financial statements for the past four years with the Malta Financial Services Authority (MFSA): a precondition for application, according to public procurement requirements.
Two Polidano companies have already been recommended for the award of these EU-funded construction projects by the General Contracts Committee.
But questions on why they have been earmarked for the tenders, without fulfilling legal obligations such as filing their yearly financials, are mounting.
One of the companies, the Polidano Group, has been recommended for the award of a €7 million EU-funded project. The tender document, for the construction of a submarine outfall at Ta’ Barkat in Xghajra, stipulates that “evidence of financial and economic standing” must be presented, namely in the form of financial statements for the years 2006, 2007, and 2008, which must also be verified by a certified accountant. Such evidence is also mandatory by a legal notice of 2005.
And yet, according to the financial services authority, Polidano Group last presented its financial statements on 20 June, 2006.
The award notice was expected to be made public yesterday.
Elsewhere, another project, also funded by the EU’s cohesion funds, this time for the civil refurbishment works for the Marsaxlokk Breakwater for the value of €12 million, could also have fallen foul of the necessary pre-tender conditions.
Again, evidence of financial standing is required with the presentation of certified financial statements for 2006, 2007 and 2008.
However the General Contracts Committee is recommending Polidano Brothers – another company under the Polidano umbrella – for the award of the tender, even though the company last archived its accounts with the MFSA on 27 February, 2004.
Concern is apparent among parts of the business community on whether the financial precondition has been ignored by the adjudicating committee, and how established this procedure is.
“This is not the first time that companies fail to deposit their audit financial statements with the MFSA, and yet are still eligible to tender for public funds and EU-funded projects,” a lawyer, who preferred to remain anonymous, with knowledge on these particular tenders, said.
MaltaToday is informed that competing companies have not objected to the decision to award the Polidano companies these two tenders, claiming the cost required to appeal was “prohibitive” – “if a complaint was deemed to be unjustified, the sum deposited could not be redeemed.”
Questions sent to the ministry of finance remained unanswered.
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