PM testifies on hospital tender 'irregularities' report

Prime Minister Lawrence Gonzi yesterday gave an account of events that led to his referring a report, alleging irregularities in the allocation of the Mater Dei Hospital tender, to the head of police for investigation.

Dr Gonzi was testifying before Magistrate Giovanni Grixti in the compilation of evidence against private investigator Joseph Zahra, 50, of Marsascala, who is pleading not guilty to filing a report against people he knew to be innocent and spreading false news that could alarm the public.

The Prime Minister explained how on June 11, 2004 he and his personal assistant Edgar Galea Curmi attended a meeting with representatives of Simed - one of the bidders for the hospital tender.

The representatives were Joseph Fenech, Raphael Fenech Adami and Frank Farrugia.

During the meeting, Dr Gonzi said, he was presented with a report alleging irregularities in the allocation of the hospital tender.

He told the Simed representatives that at face value the report did not prove anything and told them to refer the matter to the police for further investigation.

The Simed representatives told him they thought the government should investigate the case. Then on July 7, 2004, Dr Gonzi received a letter from Simed dated July 6, 2004. In the letter the company asked Dr Gonzi, as the head of government, to do all that was possible to rectify the situation outlined in the report.

In the letter Simed added that the serious allegations needed serious investigating.

Dr Gonzi explained that he had serious doubts as to the veracity of the allegations and on July 15, 2004 he asked for the advice of the Attorney General on the matter.

Consequently, that same day, he called a meeting with the Police Commissioner, handed him a copy of the report and the letter sent to him by Simed and asked him to investigate the allegations.

Answering a question put to him by Zahra's lawyer, Joseph Giglio, Dr Gonzi said Zahra was not present during the meeting held on June 11, 2004, and that he had never met or communicated with Zahra.

The case continues.