The managing director of James Caterers’ Ltd was in breach of parliamentary privilege when he wrote to Auditor General Charles Deguara warning him of possible legal action if negative comments were made about the company.

Speaker Anglu Farrugia ruled that the catering giant had breached parliamentary privilege when it threatened to hold the NAO liable for any material damages as a result of an ongoing investigation.

Last week, Auditor General Charles Deguara accused the catering company of trying to intimidate the National Audit Office and influence an investigation into a St Vincent de Paul facility contract.

In a letter to the NAO, James Barbara, founder of the catering company, warned he would hold national audit officers personally responsible for any reputational damage that could stem from an audit into two tenders linked to the state home.

The NAO is assessing a 2015 tender that began as a request for meals and a kitchen at the Luqa residence for the elderly and morphed into a second project to extend the facility.

The auditor general said that after a meeting with a consortium that included the catering company and another firm that forms part of db Group, he received a letter from James Caterers, which he deemed to be “contempt of parliamentary proceedings”.

He drew the attention of the Public Accounts Committee to complain, with its chairman Beppe Fenech Adami referring the matter to the speaker for a ruling. 

The speaker upheld this complaint and ruled that the offensive letter amounted to undue pressure on the auditor who was covered by parliamentary privilege. 

It is not clear what action will be taken against Barbara now that he has been found guilty of breach of privilege.

Parliament's privileges committee will now investigate the matter and recommend to the speaker whether he should call on the police to take action or whether the company could be “adequately punished with an admonition”.