Projects Malta board meetings were mostly held at the Finance Ministry and the ministry's permanent secretary was always present for them, a former chairman of the government agency testified on Wednesday.
William Wait was replying to questions about a statement made by Finance Minister Edward Scicluna, who while under oath had told the Daphne Caruana Galizia public inquiry that Projects Malta was “not transparent.”
Scicluna had said that his ministry was often sidelined when it came to controversial deals such as that for the Electrogas power station and Vitals Global Healthcare hospitals contract, which were in large part handled by Projects Malta.
The Finance Ministry found it very difficult to get information from the agency, Scicluna had added.
At the time, the agency was part of Konrad Mizzi's remit as minister.
Testifying before the Caruana Galizia inquiry on Wednesday, Wait said that most of the agency's board meetings during his tenure were held at the boardroom of the permanent secretary of the Finance Ministry.
Alfred Camilleri, the permanent secretary, had attended the 10 meetings held while he was chairman, Wait said.
“I would never hold a meeting unless he [the permanent secretary] was present,” Wait said.
Wait served as a director at the state agency in 2014 and then became its executive chairman in 2015. He served in that role until June 2017.
“I cannot understand how the minister could come here, telling us that he knew nothing about a project!” remarked Chief Justice Emeritus Joseph Said Pullicino, recalling Scicluna’s earlier testimony.
Asked whether any meetings had been held at Konrad Mizzi’s ministry, Wait said he did not think so, although he did not exclude that Mizzi’s permanent secretary might also have been present.
An accountant by profession, Wait explained his thirty-year background in the manufacturing sector, with roles on various boards and private enterprises. He denied claims about possible conflicts of interest, saying that when any such conflict were perceived he would seek an exemption from board meetings.
'No one from Projects Malta involved in Electrogas deal'
Questioned at length about government deals which had stoked much controversy, Wait denied any involvement of Projects Malta in the Electrogas deal.
“I was not involved at all and no one from Projects Malta was,” he stressed, pointing out that this was an Enemalta project presented before Projects Malta had even been set up.
As for the Vitals hospitals project, Projects Malta only played a coordinating role in certain minor issues such as the relocation of the blood bank, the nearby police station and some other issues linked to the St Luke’s Hospital car park.
There was an evaluation committee and an operational committee, both reporting to Cabinet. Projects Malta did not negotiate or evaluate bidders, Wait said, explaining that they were only asked to assist in providing expertise.
In the Vitals case, there was also a foreign legal expert, he went on, adding that the team at Projects Malta was limited, consisting merely of some six officials, handling a budget of some €1 million, which covered salaries, utilities and direct orders.
Konrad Mizzi’s lawyer, Aron Mifsud Bonnici, had also benefited from such direct orders while serving as director and company secretary at Projects Malta.
Asked about this by Caruana Galizia family lawyer Therese Comodini Cachia, Wait explained that those direct orders to Mifsud Bonnici’s law firm had been given “for additional services.”
“What about a €700,000 direct order for consultancy services to a Perit Maniera?” Comodini Cachia asked, referring to the ITS land deal.
“I don’t know what stage the project has got to,” answered Wait. “But the architect was paid nonetheless,” said Comodini Cachia.
“Yes, because the work was done,” Wait replied.
ITS project
He said the only project handled “from start to finish” by Projects Malta was that related to the Institute for Tourism Studies, with the St Julian’s site being valued in 2016 by the auditor at €67 million, which was €11 million more than the valuation by Deloitte.
The sole bidder was the Db Group.
“There was one positive factor. If the project were to change, for instance, by allowing for more floors to be built, the value of the land would increase,” Wait explained, facing a series of questions by the family's lawyer Jason Azzopardi.
“Was there any interaction with Konrad Mizzi on this project?” Azzopardi asked.
“Personally none. But I did interact with his permanent secretary, Ronald Mizzi,” Wait said.
Asked about any links with China and specifically about Sai Mizzi, Wait explained that he had renewed her contract with Malta Enterprise “for a short term” when it expired, recalling how he had been contacted by Daphne Caruana Galizia about the matter.
Later, the journalist had written that “Mr Wait was extremely polite and civilized…..extremely clear in his answers to my very specific questions.”
“I cherish this and I’m proud of it,” he concluded, adding that he wished that in this country such an approach would be adopted. “What we know we say we know, what we don’t, we say so.”
Former chairman Adrian Said testifies
Earlier in Wednesday’s sitting, Wait’s predecessor at Projects Malta, Adrian Said, also testified, explaining how he had resigned his post in May 2015, citing personal reasons and saying how he felt that he “had been sidelined.”
His said his personal background was anchored in the private sector and he had wanted to embark upon a new venture.
“I’m still not convinced,” remarked Judge Abigail Lofaro. “Why did you feel sidelined? Why didn’t you have a brainstorming session with the minister? Do you exclude that you resigned because you suspected something was wrong and did not wish to tarnish your name?”
“Yes,” Said replied.
He said Projects Malta had not been involved in the Electrogas project, which had pre-dated the registration of the government company in April 2014.
Asked about Café Premier and the Gaffarena property saga, Said likewise denied any involvement. “It never came to me, I never discussed it and never had anything to do with it.”
Hospitals deal 'rushed'
When it came to the Vitals hospitals deal, Said described it as “quite sudden,” “like a lightning bolt,” and said it had been “rushed,” in spite of being large scale and involving subcontracted direct orders, under the authorization of the Finance Ministry.
After resigning his post at Projects Malta, Said said he had turned down other non-executive government roles, retaining only his non-executive chair at MIMCOL, due to expire this month.
“So at MIMCOL you do not get the minister presenting you with an RFP (request for proposals) to approve,” Comodini Cachia asked. “So far, no.”
“Was that really why you left Projects Malta,” the lawyer pressed on. “The RFP for the hospitals project was too brief, too rushed,” Said replied. “At the time I felt that I ought not remain.”
“In the private sector I am used to handling projects from A to Z. I am used to a different culture. I felt it was too rushed.”
Under further questioning by Azzopardi, the witness said that he had not been “invited” to a meeting in June 2015 during which the government was to announce the preferred bidder.
Two coordinators from Projects Malta had been invited, together with his successor Wait, consultants and possibly, the permanent secretary too.
“But that day I was not invited. I don’t know why.”
The inquiry continues on Friday.