UPDATED - Certification of the Mater Dei Hospital concrete was fraudulent and ultimate responsibility should be shouldered by lead contractor Skanska, an inquiry headed by Judge Philip Sciberras has established.
Concrete found to be well below standard was laid in the first half of 1996 by Mixer, Blockrete, Devlands and Maghtab Construction.
In the Emergency Department, the main supplier of the concrete was Mixer Ltd but some concrete was also provided by Blokrete.
Health and Energy Minister Konrad Mizzi, who revealed the inquiry findings in a press conference, said that of every five samples, four were tested by Skanska itself and not by an independent party and the other by the Works division and the Malta University Services, but the sample was provided by the contractor and not picked at random.
The inquiry said this could not have been the result of a genuine mistake, but the concerted effort from which the contractor, suppliers and possible third parties could have benefited from.
"Even if the tests were correct, the fact remained that such activity could be deemed as criminal," the inquiry said.
DEFICIENCIES FLAGGED IN 1996
In 1996 serious deficiencies and bad workmanship had been flagged by the then Works Department Director Vince Cassar but the Foundation for Medical Services took no action and remained passive.
The site supervisor during the works had also alleged there was political intervention to accommodate certain contractors, but there were no details.
The inquiry found that an agreement signed in December 1998 between FMS and Skanska when the new PN government took over was 'a blank cheque for Skanska'.
Dr Mizzi said the former government and the PN should assume responsibility for what happened under their watch. This could not have been an oversight as the fraud was widespread.
Referring to the Project Closure Agreement of 2009, which includes the waiver on future issues, he said that Paul Camilleri, former FMS president, had told the inquiry that there could have been malicious intent behind the waiver.
Dr Mizzi said this led to the question as to why Mr Camilleri signed the agreement.
He said the FMS board meeting which approved the agreement was covered by two minute documents. One said that the agreement was read out and the board approved it, and the other only that the key principles were read out.
The only time the waiver was mentioned was in January 2009.
Mr Camilleri had informed then health Minister John Dalli of the waiver in early April 2009, six weeks after the agreement was signed. Brian St John (CEO) was copied in.
Dr Mizzi asked if Paul Camilleri was acting in isolation.
He noted that the inquiry had reported that it was not convinced by the version of events given by Mr St John, particularly when he said he did not remember the waiver.
In 2011 when faults resulted in a hospital reservoir and FMS wrote to Skanska, Skanska invoked the waiver, and the FMS dropped the case.
Dr Mizzi asked why further tests on the hospital concrete were not made at the time.
The inquiry said the waiver clause could hinder government efforts to seek compensation from Skanska, the inquiry found.
On criminal responsibility, Dr Mizzi said the Inquiry expressed 'huge reservations' on the statements made by certain individuals under oath. It asked the police to investigate the political pressure mentioned earlier, as well as fraud.
It also advised that all information should be handed to the Attorney General to assist the government in its claims against Skanska.
STATEMENT IN PARLIAMENT
Later this evening Dr Mizzi delivered a statement on the findings of the Inquiry. He explained how repeated tests had been made on the hospital concrete, locally and abroad by consultants Arup, and the results were shocking.
Mater Dei Hospital, he said, had cost €600 million. The building took 17 years and it was a disgrace that the most basic element, the actual structure, was weak.
The original contract specified that the concrete had to have strength of C30 and account for vertical expansion of the building. Yet in the emergency department, the strength of the concrete was of C18 and it could not handle seismic tremors.
Weak concrete, with a C23 strength, was also found in Block D, where the wards and theatres were located, and this block would need to be strengthened. Other blocks were not seismic proof. The only strong concrete was in the mortuary and the cancer hospital.
Repair work would cost at least €35m.
Dr Mizzi went over the findings of the inquiry and how samples were tested, as explained earlier in the press conference. The weak concrete, he said, was not the result of a genuine mistake but intentional, in an effort by Skanska and its associates to make money to the detriment of the government. This, the Inquiry said, was criminal.
Dr Mizzi said that according to the Inquiry, Ortesa spa, a company awarded a supervision contract in 1994, had been in a position to ensure that works were being done correctly, but no action was taken, even when some allegations started being made. It was naive, the inquiry said, that the government at the time, with Louis Galea as health minister did not know of what had been going on. It was worth recalling, however, that Alfred Sant as prime minister had suspended Dom Verse (of San Raffaele Foundation) and reviewed the project, leading to its enlargement.
Dr Mizzi went over the final agreement reached with Skanska, including a waiver which initially was about claims known to date but which later became a blanket waiver as part of a project conclusion agreement. It was not known why the then Health Minister (John Dalli) was not kept up to date.
In 2011 inferior concrete was found in a reservoir, Skanska invoked the waiver and the FMS dropped its claims.
The Inquiry, Dr Mizzi said, found that Skanska was civilly responsible for the quality of the structure and through its contracts, it had also assumed responsibility for previous construction. The project management would also be held responsible. Proving fraud in the concrete tests would made a claim for compensation stronger, Dr Mizzi said.
For the future, Dr Mizzi said the government was in contact with Skanska and would do everything possible in this case. The police and the attorney general would consider criminal and civil actions.
Dr Mizzi said the government also expected answers from the opposition.
OPPOSITION LEADER'S REACTION
In a reaction, Opposition leader Simon Busuttil asked for copies of the Inquiry Report and the report by Arup.
The minister tabled the inquiry report but only part of the Arup report related to the Casualty Department, saying investigations on the rest of the hospital were still under way.
Dr Busuttil said the people expected transparency and therefore the reports should be tabled in full as the minister had referred to them.
He requested a ruling from the Speaker.
Dr Mizzi said the inquiry was about the Casualty Department and related blocks.
Dr Busuttil said the minister had referred to the inquiry and the Arup report and the minister should follow the practice of the House and ruling of the Chair by tabling the reports in full.
Prime Minister Joseph Muscat said the Opposition leader was seeking ways to get out of this debate. The government was publishing all relevant documentation. Other investigations on the hospital structure were still in hand and reports would be tabled as soon as they were ready. The opposition should not use legal points, legalisms, to avoid debate.
Dr Busuttil asked since when transparency amounted to legalisms. He insisted the reports should be tabled in full.
The sitting was suspended at 8.37pm for the Speaker to consider his ruling.
When the sitting resumed at 9.35pm the Speaker said the minister had not quoted from any report but made reference and therefore he could not order that it be laid on the Table of the House.
The sitting is still in progress.