Staggering €4M variation
| Headlines maltastar.com |
Waste Treatment Plant cost overruns revealed |
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| Staggering €4 million variations on Gozo and Mellieha Plants | ||||||
| Michael Falzon still chairm despite breaching Code of Ethics for Board Directors | ||||||
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The cost overruns on the development of Waste Treatment Plants by the Water Services Corporation (WSC) exceed €4 million (Lm1.7 million), maltastar.com is informed.
This staggering revelation by Labour MP Joe Mizzi on Sunday has remained unchallenged to date. A few weeks back Investments Minister Austin Gatt “rapped” the board of directors asking them to explain cost overruns on the waste treatment plants in Gozo and Mellieha.
But in an opinion column on Sunday newspaper it-Torca, Labour MP Joe Mizzi revealed that the variations on the two Waste Treatment Plants which are being financed by the European Union funds.
Gozo’s Ras il-Hobz Plant: More than €2 million
Mellieha’s Tac-Cumnija Plant: A bit less than €2 million The figures become more serious when one keeps in mind the original cost which government had announced. Investments Minister Austin Gatt had told Parliament in February 2007 that the Gozo Waste Treatment Plant was to cost Lm3.2 million (€7.4 million).
In January 2007, the same minister in Parliament had said that the Mellieha Waste Treatment Plant was to cost Lm2 million (€4.6 million).
None of these figures have been challenged by either the WSC or the Investments Ministry, which is responsible for the corporation.
Interestingly, the government representatives on the Public Accounts Committee, including Minister Austin Gatt, voted against a motion by the Opposition which called for an independent investigation of the Waste Treatment Plants variations by the Auditor General.
 Chairman does not resignAmidst the controversy on variations, the Chairman of the WSC Michael Falzon – a former PN minister – revealed in a letter on The Times that he has business links with one of the contractors working on the controversial plants, Polidano Group. He said that he felt there was no conflict of interest in his partnership, while admitting that Polidano Group was awarded several contract by the WSC. Perit Falzon also said he has no say in awarding contracts.
But a hard hitting statement by the Labour Party on Monday and maltastar.com’s investigations quoted the Code of Ethics for Board Directors in the Public Sector which shows that Perit Falzon is in full breach of these guidelines.
In Section F, Conflicts and Declarations of Interest, article 12, the Code of Ethics states: “12. Like other fiduciaries, Board Directors are required not to put themselves in a position where there is a conflict (actual or potential) between their personal interests and their interests to the organisation.” Article 14 of the same section then specifies what Board Directors are expected to do in order to declare their interest in such situations.
“14. Board Directors are required to disclose in writing to the board their interest in any contract entered into by the organisation as well as any financial interest or undertaking which could directly or indirectly compromise the performance of their duties. In these instances Board Directors should deposit with the Chairperson of the organisation a declaration listing all relevant information relation to:
(a) any directorship, partnership, agency or any shareholding;
(b) any interest in an activity or business in which or with which the organisation is engaged; and
(c) any interest in goods or services recommended or supplied to the organisation
The Declaration should be completed and given to the Chairperson of the organisation within a month of assuming office and on a yearly basis. A copy of such Declarations should be made available, if required, to the responsible Minister.” (Code of Ethics pages 8 and 9)
None of the above happened in Michael Falzon’s case. Labour has on Monday demanded the resignation of the WSC chairman.
Yet, despite the Code of Ethics being crystal clear that the chairman has breached such guidelines Mr Falzon has filed a judicial protest against this e-newspaper and other media that published Labour's call for his resignation.
The Labour Party statement called on Minister Gatt - who has remained mum on the issue - not to accept Mr Falzon’s explanations and move in to remove him if he refuses to resign. |
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