Opposition urges Government to publish all documentation

The Opposition yesterday urged the government to release all correspondence and documentation related to the award of the medical equipment tender for the new Mater Dei Hospital to the Italian company INSO.

Braving the weather in a press conference held outside the new hospital at Tal-Qroqq, Msida, MLP deputy leader Michael Falzon, the party's health spokesman Michael Farrugia and secretary-general Jason Micallef argued that the Opposition would not be drawn into who should have been awarded the tender. However, it was urging the government to release all the documents to prove that everything was above board.

Dr Falzon said the New Year had already been tarnished by this "alleged scandal".

"I only wish it will turn out to be the only one, but I am afraid more scandals will come to light as the year continues to unfold. Even former ministers are criticising the government's decision," Dr Falzon said, in a reference to former Justice Minister Joe Fenech, who is counsel to Simed, the Dutch consortium which also tendered for the supply of hospital equipment.

The MLP wanted to know whether the tender was awarded to the company making the best offer, as it was the people's money which would finance it, Dr Falzon said.

Dr Farrugia said there were many still unanswered questions as to why the government chose INSO when the Foundation for Medical Services (FMS), which runs the new Mater Dei Hospital, had recommended another consortium.

He argued that different criteria were used in the adjudication to elbow out other consortia and ensure INSO clinched the deal.

Dr Farrugia said it was not true that INSO's bid was the cheapest as the company had cited lower VAT tariffs and left out a number of items that were required. He also questioned why the government had chosen SECTA as the consultants to adjudicate the medical side of the contract when these were criticised by one of the consortia.

In spite of assurances that there was no political involvement in the choice of INSO, Dr Farrugia said documents showed that Finance Minister John Dalli and Health Minister Louis Deguara were present for a board meeting of the FMS in November 2002.

Dr Farrugia said it was up to the companies involved to decide whether they want to challenge the decision in court, but anyone wishing to do so had to pay millions of liri up front to be able to file the case.

Dalli's reaction

Contacted for his reaction, Mr Dalli said the Opposition was maliciously repeating Simed's arguments and dishonestly quoting what was said by interested parties during the appeal as if it were fact.

"The adjudicating process included independent people who heard submissions and decided freely. The process was a complete one that went through all channels," Mr Dalli said.

The Finance Minister said the opposition had failed to acknowledge that although FMS had advised that the German consortium Hospitalia should be awarded the tender, the Department of Contracts felt the tender could not be awarded to them because they did not adhere to tender specifications and the Board of Appeal had agreed with the Department of Contracts about the matter.

"The way Dr Farrugia commented shows he has assumed the responsibilities of the adjudicating board, the Department of Contracts, the FMS board as well as ministerial responsibilities," Mr Dalli said.

He asked which consultants had prepared Dr Farrugia's assessment and whether these were linked to any interested party in the matter.

"The government will be looking at the FMS to see whether there were any moles passing on information to Simed and Dr Farrugia.

"Dr Farrugia, like the lawyers for Simed, appear to have had access to confidential FMS documents and one should ask how Simed could learn what was said during FMS board meetings during the process. If anything smacks of corruption, this does," Mr Dalli said.

The Finance Minister said he had had meetings with FMS on several occasions about the way the foundation was to operate but had never been involved in discussions to influence them about which consortium they should choose.

In a statement by the Department of Information released later, the government said that for Dr Farrugia, all that was stated by competent and independent persons forming the adjudication board, the contracts committee, the FMS board, the appeals board, Grant Thorton Consultants, Muscat Azzopardi and Associates and Secta counts for nothing, while insisting that those who were complaining against the government were right.

"This is not serious. Nor is it in the public interest. It is not serious to take an argument used during the appeal hearing by interested parties and present it as if it were Gospel truth or a board decision."

Government insists that the process was one of the most transparent and open, and that the decisions were taken in the best interests of the Maltese people, the statement concluded.