The Democratic Party will be asking Parliament’s Public Accounts Committee to demand an investigation into a multimillion-euro tender for services at the St Vincent de Paul Residence.
The PD, whose two MPs form part of the Opposition, also called on the government to answer questions raised by the “unusual nature of the contract”.
Both the government and the Nationalist Party in Opposition have, so far, remained tight lipped about the tender awarded to James Caterers and Malta Healthcare, the latter owned by the same shareholders as the DB Group and the Seabank Hotel.
Unless full, unredacted contract is published, it will be very difficult to satisfy the public
The PD said it would be writing to the PAC to ask the Auditor General to investigate how the contract was awarded and why the extension of the home for the elderly formed part of a kitchen contract. “Unless a full, unredacted copy of the contract is published, it will be very difficult for the public to be satisfied that all clauses within it conform to best practice, good governance and safeguard the real interests of the tax-paying public,” it said.
The Sunday Times of Malta reported last week a €58 million government tender for meals and building a new kitchen at St Vincent de Paul was transformed into a fully fledged extension of the facility catering for an extra 500 beds.
The deal was struck on the premise of an “unusual clause” in the tender, which asked the bidders for an “additional investment” over and above its scope. This additional investment, which was not specified in the contract, was given the highest weight in the evaluation process and was the “winning card” for the successful bidders.
The Sunday Times of Malta said that, despite the fact that the total value of the tender was €58 million, the winners offered an additional investment of €30 million for an extension on public land. The contract also lays down that the new facility will only become government property after the end of its 10-year term, which can be extended to 15.
The government has so far failed to say who will run the new extension and who will provide the meals and healthcare services. Industry sources indicated the private consortium that won the tender could benefit from tens of millions of euros in taxpayer money if it also acquired the right to manage the new facility.
Questions sent to the government on the matter remain unanswered.
Asked last Monday to say whether it would be seeking information on the tender and demand an investigation, the PN remained mum.
ivan.camilleri@timesofmalta.com