Quantcast
Channel: TVM » Current Affairs Posts
Viewing all articles
Browse latest Browse all 5966

PAC hears more evidence on oil procurment issues

$
0
0

EGB1

The Public Accounts Committee is meeting again this morning and is hearing the evidence of Mr Edmund Gatt Baldacchino who was a member of the Board of Directors, and  later Deputy Chairman of Enemalta. The sitting will be questioning Mr Gatt Baldacchino for his experiences on the Fuel Procurement Committee of Enemalta. Answering questions by government Parliamentary Secretary Dr Owen Bonnici, Mr Gatt Baldacchino said that the technical specifications would be handled by the technical members on the committee. In answer to a question by Dr Justyne Caruana, Mr Gatt Baldacchino explained how the FPC worked in seeking clarifications on bids. He said that in his estimation, his role during his tenure, was to see that the due process was being followed. As acting chairman for a temporary period, Mr Gatt Baldacchino said that he left the procedures in place. Replying to Dr. Bonnici’s queries, Mr Gatt Baldacchino said that the Chairman of the FPC (ie Ing A. Tranter, Chairman Enemalta) would bring in the bids in a file and these would be read out. The members would take notes. Mr Gatt Baldacchino said that the bids would have been entered few minutes before. He said that meetings with the Oil Companies would happen together with management and these would be courtesy visits and not involving the brokers. Replying to probing questions by Dr Bonnici, Mr Gatt Baldacchino described Ing Tranter’s chairmanship as energetic and motivating to the management in spite of the several challenges the corporation faced. He said that the Board of Directors, to his recollection never discussed the possibility of not using oil for energy generation. Dr Justyne Caruana took over the questioning, homing in on the minute taking procedures. Mr Gatt Baldacchino said that while there was a papertrail for every decision, he had asked for and obtained advice from PWC to ensure that the decisions taken by the FPC would be duly enacted. The PWC were commissioned to carry out a procedural review to improve governance and procedures. He said that he took the initiative, not because he saw any wrong doing but because he felt that the procedures could be improved. The Opposition members then took over the questioning. Mr Gatt Baldacchino said that Enemalta was, at that time, facing various problems such as massive debt and an ever escalating price of oil. He said that during the FPC meetings, he always put in his expertise to ensure that the coroporation availed itself of the most competitive of prices and got the best deal. Mr Gatt Baldacchino said that members of the FPC were also baord members and that board used to keep minutes; however, the Auditor General did not use these minutes. He expressed strong disagreement with the conclusions of the Auditor General, saying that he always saw the members behaving very professionally. He said that he had started the process for better governance, adding, that if had had any inkling of wrongdoing, he would have acted very differently.
After the evidence given by Mr Edmund Gatt Baldacchino, the PAC heard Former Chief Executive David Spiteri Gingell. He said that unfortunately the Auditor General, in compiling his report, had not consulted him , and, said Mr Spiteri Gingell, he should have done that.   Mr Spiteri Gingell said that he had taken the post of CEO after two others had resigned within 3 years. Recalling that he had already worked well with former minister Austin Gatt, he had accepted overtures to fill the position of Enemalta CEO. His brief was to turn the situation at Enemalta around. Mr Spiteri Gingell said that he was aware that this was not an easy brief and nothing had been implemented of his previous report compiled in 1996. Mr Spiteri Gingell said that he had wanted to discuss a financial package which would have enabled him to employ more accountants to change the situation into a pro-active one. He said that without such a change, the situation at Enemalta would remain static since that aspect of the corporation was understaffed. He said that inspiteof his recommendations to employ 30 staff in accounts and finance, only three were employed. Mr Spiteri Gingell said that this indicated that the ministry was not taking seriously the gravity of the situation. After failed attempts to implement reforms, he resigned in 2008 since he felt that he and the ministry were wasting each other’s time. Mr Spiteri Gingell said that after the election, he had been asked to reconsider and was given the minister’s word that issues will be addressed. Mr David Spiteri Gingell, replying to the government’s line of questioning, said that he had been responsible for negotiating a tender for €80 million relating to smart meters, among other things. He said that he had alerted the minister that Enemalta was unprepared but the minister had wanted to proceed in any case. He said that this had forced his hand at resignation. Mr Spiteri Gingell said that the minister of finance had not understood the situation at Enemalta, and understood it only when he took over the portfolio. Mr Spiteri Gingellsaid that he had wanted to improve the management structure and to stop the acerbic sand endemic memo wars. He said that the Ministry of finance’s aim was to spend as little as possible on human resources, but, said the former CEO, Enemalta did not even have enough staff to carry on the necessary processes. Mr Spiteri Gingell said that he was so fed up of the situation, that he resigned without alternative employment. Mr Spiteri Gingell said that the issue of minuting was a relatively minor matter when compared to the dire need of institutional reform. He said that the system was safe because the person handling it was one of known integrity, but the situation could have been better. He said that after he left, the situation slowly started to improve. With the Opposition taking the floor, Mr Spiteri Gingell said that he had ended up in the cross fire between government and opposition, both intent on scoring political goals. The more he explained the situation, said Mr Spiteri Gingell, the worse things became since every word was manipulated. Mr Spiteri Gingell said that the then opposition MPs Evarist Bartolo and Leo Brincat, together with Maltatoday, had attacked his integrity incessantly and had alleged that his resignation had been due to differences with the then minister Austin Gatt when in fact it had been due to differences with the ministry of finance. Mr Spiteri Gingell justified the choice of the BWSC power station.      

Viewing all articles
Browse latest Browse all 5966

Trending Articles