The Nationalist opposition yesterday presented a parliamentary motion requesting the prime minister to appoint an independent public inquiry as per the Inquiries Act, tasked with examining the notorious political, administrative and commercial decisions made throughout the Electrogas deal. The inquiry would be tasked with establishing abuses and wrongdoings as well as identify those who ordered, executed, facilitated, were aware or should have been aware of wrongdoings associated with the Electrogas project.
The prime minister’s take on the subject has so far been more of a laissez-faire attitude. But his time is up. He can no longer run away from the numerous misgivings, repeating the mantra that the project was not signed under his premiership. Till this very day, the consumer is being made to pay high utility bills as a result of the Labour government’s corrupt pre-electoral deal. While the direct political figures involved in the Electrogas saga have resigned, there are members in the current cabinet of ministers that need to shoulder collective responsibility.
Robert Abela, who repeatedly boasted about his privileged role in Muscat’s cabinet as senior consultant, must also shoulder responsibility for that, all the more now that he’s inherited this poisoned chalice. There can be no excuses. The Maltese consumer should not be made to pay the ultimate price.
In his report entitled ‘An investigation of matters relating to the contracts awarded to Electrogas Malta Ltd by Enemalta Corporation – November 2018’, the auditor general listed so many irregularities that it was close to impossible to list them all in our parliamentary motion.
The Labour government, for instance, committed itself to purchase 85 per cent of all electricity generated from the Electrogas power station for 18 years, irrespective of the demand and in instances when it is more economically viable to purchase power from the interconnector – a Nationalist government project.
To this end, the auditor general concluded that the Maltese consumer has been made to pay €10 million in additional utility bills over a span of just 35 weeks owing to this notorious contractual obligation in the power purchase agreement.
Mr Prime Minister there’s no more hiding- Ryan Callus and Karol Aquilina
The visit to Azerbaijan by then prime minister Joseph Muscat, accompanied by Konrad Mizzi in the absence of any civil servants, also resulted in the notorious commitment by Labour to purchase 85 per cent of the gas supplied in its gas supply agreement for a period of 18 years from Electrogas, which, in turn, purchased from SOCAR (the state oil company of the Azerbaijan Republic) acting as an intermediary, which, ultimately, purchased gas from producers. This interminable chain ought to be investigated in view of the additional ‘costs’ passed on to the consumers, when Enemalta could have purchased gas directly from the producers.
Our motion empowers the public inquiry to examine the adjudication process, which the auditor general investigation established to be irregular in various instances. The fact that the person tasked with adjudicating the final stage, the managing partner of NexiaBT when NexiaBT happened to be the auditing firm of GEM Holdings Ltd., a shareholder company in Electrogas Malta Ltd, is perceived as a conflict of interest at best.
Other matters include the irregular and unprecedented bank guarantee of €360 million; the auditor general’s findings regarding the similarity of the project proposal made to the then Labour Party in opposition and the actual project as delivered; the €40 million in excise duty pardoned at the stroke of a pen by disgraced former minister Konrad Mizzi in breach of the contractual agreement entered into between Enemalta and Electrogas; the postponement by 18 years of €18 million in late penalty fees and the resultant cost benefit had Enemalta opted to operate the Electrogas turbines post-construction.
The inquiry shall also delve into the companies Hearnville and Tillgate owned by the former chief of staff at the office of the prime minister, Keith Schembri and Mizzi as revealed in the Panama Papers, and into beneficiaries of 17 Black, owned by Yorgen Fenech, allegedly involved in Daphne Caruana Galizia’s assassination and was former project director of Electrogas.
The inquiry shall also request the immediate publication of the agreements signed without any redactions and give replies to the multitude of questions that remained unanswered by all involved as outlined by the auditor general.
Mr Prime Minister, there’s no more hiding. No ifs and buts. It’s time you bite the bullet. Our call for an independent public inquiry is set to establish the truth on this black spot that has tarnished your party’s reputation, our country’s international standing and made our fellow citizens pay the price of corruption through their utility bills. The ball is now in your court.
Ryan Callus is opposition spokesperson for energy and Karol Aquilina is opposition spokesperson for good governance.