Updated 2.50pm with Palumbo statement
Resident associations from the Cottonera region and other NGOs have written to the Prime Minister and other members of Parliament regarding 'a deal' between cruise liner giants MSC and Palumbo, who run the shipyards in Cospicua.
Besides the fact that the terms of this deal are unknown to residents and the public, they said they had a number of concerns about this joint venture given “the controversial management of the shipyards undertaken by Palumbo”.
But, in a statement, the shipyard company said there was no deal yet and that an eventual deal would be beneficial to the Maltese economy.
The residents said these concerns are related to the several shortcomings and scandals which occurred during Palumbo’s 10-year tenure (the concession runs for 30 years), as well as the extremely scant information as to what this joint venture with MSC will mean for the Cottonera community.
The signatories are calling for enforcement action to be taken with regards to Palumbo’s activities before the deal can go ahead.
The response to the letter consisted of two MPs asking for more specific information about Palumbo’s breaches. Although these breaches have been very public, they were compiled and sent in a second letter. The latter received no replies and only one acknowledgement.
In their letter, these organisations are calling on the authorities to implement the necessary enforcement and amendments to the concession, before the deal between MSC and Palumbo goes any further.
Moreover, no effort was made to inform, further less discuss, these issues with the local community which stands to be affected by this joint venture.
“Whilst understanding that the world is passing through the extraordinary COVID-19 pandemic, just as the Office for Competition approved the acquisition during this time, it remains imperative that the grave environmental, societal and fiscal breaches related to this concession are addressed.
The organisations signing this letter are: Azzjoni: Tuna Artna Lura/Action: Give us back our Land; Association for Justice Equality and Peace; Flimkien Għal Ambjent Aħjar; Friends of the Earth Malta; Forum Komunità Bormliża; Futur Ambjent Wieħed; Moviment Graffitti; The Senglea Historical Society and Żminijietna - Voice of the Left.
Palumbo says there's no deal yet
In a statement, Palumbo Shipyards clarified that to date no agreement has been finalised with MSC Cruises and insisted that such a deal would only have positive economic benefits for Malta at a time of uncertainty.
"The statement is nothing but provocation from the usual suspects who, for the past 10 years, have been bent on seeing the destruction of the shipyard, little realising the harm they are causing not just to the facility on an international level, but also to Malta," Palumbo said.
It condemned the defamatory allegations contained in the letters and reserved the right to institute legal action.
The shipyard said the timing of the statement was "particularly distasteful" given that it was focused on trying to safeguard the jobs of its employees and continue contributing to the Maltese economy during the coronavirus pandemic.
"Palumbo Malta Shipyard has placed among the top three worldwide in the cruise ship refitting sector, and, despite the crisis we face now, will continue to work in the interest of Malta and its citizens," it said in its statement.