The State aid monitoring board has refused to give details on its decision to allow an unprecedented €88 million State guarantee to Electrogas, saying it was “secret and confidential”.
Board chairman Paul Zahra, who is also permanent secretary at the European Affairs Ministry, said: “You will appreciate that the State aid monitoring board is established by law and that every member appointed on the same board shall, by law, regard and deal with all documents and information in his possession in the performance of his duties as secret and confidential.”
Confirming the board gave the go-ahead for the guarantee, he said EU rules provided “parameters for government guarantees to be granted in line with the [community] acquis [the European Union’s body of laws]”.
Times of Malta put a number of questions on the matter. However, Mr Zahra refused to answer any of them.
Electrogas Malta Ltd is a private company entrusted to build and operate a new power station and gas-handling infrastructure at Delimara. The €88m State guarantee was necessary for the company to obtain a loan from Bank of Valletta to finance the project.
Finance Minister Edward Scicluna said that, although the government guarantee was unique, it was only temporary until the European Commission cleared a security of supply agreement entered into with Electrogas.
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All facts surrounding the issue should be made known - Malta Chamber
In a statement this morning the Malta Chamber said that in the best interests of the country all the facts surrounding the issue should be made known and interpreted in an objective way.
It said it made every effort to seek the necessary facts on the matter and, in its view, the project formed an intrinsic part of Malta’s energy plan.
The business community deemed a stable and affordable energy supply as a matter of prime strategic and economic interest.
The chamber hoped the European Commission would interpret the situation in this broad context and take into account, in its formal position, the security of supply agreement contemplated in the original tender.
The Chamber suggested that a full presentation of the relevant facts was made in the appropriate fora, to ensure better transparency.
"Further delay in presenting the full details on the matter shall continue to raise unnecessary yet understandable doubts within the country," it said.