There would seem to be no end to the sticky problems cropping up for the government. Two involve claims of corruption in contracts and the latest is that over the award of a small government contract to a company whose director was convicted of VAT fraud. The first, for the conversion of barges for Fairmount, and the second, for the extension of the power generation plant at Delimara, are likely to keep the pot boiling for many months to come. A call for an independent inquiry into the first has not been accepted, even though it was the last nail in the coffin of the ship-repair yard.

As to the controversy over the second, the contract has now spun off another, which, in perspective, can easily be dismissed as a blunder on the part of the Labour Party. The party partly bungled its case when its MPs walked out of Parliament during a vote on its motion condemning the government over the way the contract was given to the Danish company. If it felt it had strong grounds to complain and protest over the way the vote was handled, it should have done so in a normal manner.

There was certainly no need for a walk-out, much less for the resignation of the Deputy Speaker and a threat to discontinue participation in a parliamentary committee on the strengthening of democracy. Yet, its case over the Delimara contract remains strong as, on the basis of the observations made by the Auditor General, the investigation is not as yet conclusive. It would not be unless those who chose not to cooperate with him in the investigation change their mind and do so in further investigations of the case.

The third contract is by far smaller in value than the first two as it was for €48,000 worth of paint awarded to a firm whose director was one of a number convicted of VAT fraud. In this case, the government acted swiftly, with Prime Minister Lawrence Gonzi immediately declaring that people convicted of VAT fraud should be blacklisted forever. And to make sure that the loophole will be plugged, the Finance Ministry has now announced that legislation would be amended to ensure that people found guilty of breaking the law would be unable to win public contracts.

The Finance Ministry did well to remark that, in the case of the company director found guilty of fraud, the court did not disqualify the individual from bidding for public tenders. The Finance Minister, Tonio Fenech, has now explained that, with the planned changes to the law, it would not be possible anymore for a company to submit a tender when one of its directors is found guilty. In fact, the regulations will create a blacklist of companies and directors.

This is as it should be, for the state ought not to award those who try to defraud it of public funds. Such a meaningful deterrent is likely to work.

In the case of the power generation plant contract, the administrative shortcomings listed may have been due to inexperience but, in his last report on the public accounts, the Auditor General says that office audits over the years have consistently shown that, in certain instances, procurement systems have not been adequate to ensure best value for money, a remark that speaks volumes.

The time for a review of such procurement systems is well overdue. But even more important than this is the strict observance of the regulations.