News • 21 September 2003

MaltaToday vindicated on St Luke’s incinerator replacement story

A front-page story carried in MaltaToday was vindicated when the director of contracts confirmed that the company awarded the tender for the replacement of the St Luke’s incinerator is not in a position to honour its commitments.
The incinerator, which burns medical waste including body parts, has been seriously malfunctioning for several years adversely affecting the health and quality of life of those living in the vicinity.
MaltaToday carried several articles in May and June of this year linking sleaze in the US with the tender in Malta.
The tender was awarded to a Maltese company that was to supply equipment manufactured by a US supplier embroiled in fraud cases with at least one of the top company officials in jail and others arrested.
Even at the time of the award of the tender a quick search on the internet would have revealed that not all was well with Sanitec, the US manufacturers of microwave waste disposal technology.
MaltaToday also quoted from reports prepared by the health department that only examined Sanitec equipment and recommended it.
When MaltaToday asked pertinent questions to the health ministry these remained unanswered, until health minister Dr Louis Deguara was confronted by MaltaToday journalist Matthew Vella at a press conference. In answer to MaltaToday’s questions, Dr Deguara replied:
"You believe many things that get published, this is just what you are saying…..There will be a fine if the apparatus is not delivered, which puts in doubt your categorical statements…Do you think someone in their right senses would make a Lm50,000 deposit without being certain that they can deliver their product on time?"
This week MaltaToday tried to contact minister Deguara for his reaction to the announcement made by the director of contracts, but the minister is abroad on official business and will only be able to answer Maltatoday's questions next week.
The tender award was contested in court by a competing company, which had also indicated that Sanitec US was in difficulty, but the court rejected the pleas for reconsideration.
Over the past week MaltaToday asked Sarrebico Medical Supplies, the company awarded the tender in Malta whether it was in a position to supply the equipment but was met with an icy silence.
When defending itself Sarrebico had produced a letter dated 27 April 2003 from Stephen Ventre in the US who claimed to be the only member of Sanitec Group and said "Sanitec Group has not filed for bankruptcy and has not been involved in any illegal activity or money-raising scheme."
In early 2002, US journalist Jim McNair started publishing articles about Sanitec personnel implicated in a fraud scandal and these articles appear regularly to date. Top Sanitec owners and officials were implicated. Terry Quatkemeyer was sentenced to two and a half years in prison; he is the cousin and partner of Stephen Ventre who together with George Fiorini is implicated in a fraud scandal. Ventre and Quatkemeyer bought Sanitec and got Fiorini to attract investors - those that invested now see that their money was used to buy Sanitec, and are trying to get their money back.
Also in 2002, Joseph Delloiacovo resigned as president of Sanitec and sent letters to all clients saying: "this battle has been ongoing for more than a year, and has, unfortunately, devastated the company’s ability to continue operations."
On 22 May 2003 Ventre admitted to fraud in the US and faces a fine as well as a five-year prison sentence and has been ordered to pay back that lost money in his company’s investment scheme.
For the residents of Msida, Guardamangia, Pieta and the boat owners at Msida marina, the replacement of the incinerator has been a seven year long saga. Experts in the waste management field told MaltaToday that residents might have to wait for at least a year for the new equipment to be in place.
Those that competed in the tender off could have their offers considered, but rather than choosing Sarrebico’s competitor as it can do, it seems the government intends to issue a new call for tenders, delaying the process even further, much to the distress of all those living in the locality.