The Public Accounts Committee (PAC) yesterday decided not to refer the claims made by opposition leader Alfred Sant about the contract for the waste recycling plant in Gozo to the Auditor-General for an inquiry.
Instead, the government majority on the committee approved a motion presented by Investments, Industry and Information Technology Minister Austin Gatt calling for Sant’s claims to be discussed in the PAC.
At the PAC meeting which lasted three-quarters of an hour, Gatt revealed that the tender for the waste recycling plant in Gozo had not been granted to a Gozitan contractor as claimed by Sant but to a joint venture consisting of French company Degremont and local contractor Schembri Bros.
During a discussion on One Radio on 26 August, Sant had called on Gatt and WSC chairman Michael Falzon to conduct a public inquiry “about things that are currently taking place in the corporation” because “there are dodgy things taking place” regarding the awarding of the contract for the construction of the waste recycling plant in Gozo.
Dr Sant claimed that the contract had been awarded to a Gozitan contractor despite the fact that there had been another bid that was Lm1.5 million liri cheaper “but the contract was nonetheless awarded to the former as the latter was “a blue-eyed boy, an intimate friend of Minister Giovanna Debono and very close”.
He also claimed that Falzon had been covering up shoddy construction work that the Gozitan contractor was doing in connection with the waste recycling plant in Gozo and that Gatt knew about this shoddy work and thus ordered the WSC chairman to take action about it.
An opposition motion presented by Labour MP Helena Dalli calling on the Auditor-General to “investigate in the most comprehensive manner” the claims made by Sant as well as the remarks made by Gatt on cost overruns in a letter to the WSC Chairman dated 9 August 2007 was defeated with three votes in favour and four votes again.
It was this letter which had led Falzon to tender his resignation as WSC Chairman on 17 August citing “an astounding lack of trust” by the Minister, only to withdraw it a few days letter after patching up with Gatt.
The three-quarter hour meeting was dominated by Gatt and Mangion holding on to their respective positions, with Gatt insisting that the allegations should be investigated by the PAC and Mangion insisting that the investigations should be conducted by the Auditor-General.
Gatt categorically denied any involvement in the contract for the construction of a waste recycling plant in Gozo. “These are specific accusations that should be investigated by the Public Accounts Committee,” he said.
Mangion said that although his letter to PAC members on 31 August referred to the cost overruns in the WSC, this did not exclude the possibility of an inquiry about the Opposition leader’s claims. “Now the question is whether it is conducted by the Auditor-General or by the Public Accounts Committee,” he said.
The PAC Chairperson insisted that the Auditor-General has the right to investigate this case because he is responsible only to Parliament and nobody can interfere in his investigations. “He enjoys the trust of both sides of the House,” he insisted.
Gatt welcomed Mangion’s clarification as there was now agreement on the facts in discussion, however he insisted that for the government, the two issues were completely separate.
“The government is ready to agree on the terms of reference for the Auditor-General about the cost overruns, however the three claims made by the opposition leader were a completely different matter.
“Sant’s claims are specific and do not fall within the terms of reference of the Auditor-General and should be investigated by the Public Accounts Committee,” he said.
Gatt said that in observance of the practice of unanimity in the PAC, the government was ready not to present a motion if there was no agreement between both sides of the House if the opposition did not present a motion of its own.
However, referring to the impending electoral campaign, Mangion replied that the discussion was taking place “in particular political circumstances” and that the opposition would only agree to the government motion if it had stated that the Auditor-General would investigate the two cases.
The first and only time until now that the PAC broke the unanimity practice was when it discussed the Auditor-General’s report on the Voice of the Mediterranean last year.

czahra@mediatoday.com.mt