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News • 24 April 2005


State secret: Mater Dei’s outstanding expenditure

Kurt Sansone

The deal with Swedish consortium Skanska for the construction of Mater Dei may have been signed last week but Government is dead silent on the cash that still needs to be pumped into the hospital.
For two weeks the finance ministry has failed to respond to questions put to it by this newspaper about the remaining balance that has to be paid to Skanska up until the date of completion in 2007 and Government’s capital expenditure programme for Mater Dei over the next three years.
The contentious Mater Dei hospital has been a constant drain on Government finances for the past few years and the outstanding outlay is a crucial determinant for Government’s plans to reduce the deficit to below three per cent by end 2006.
In the convergence programme submitted to the EU, Government said it was expecting expenditure on Mater Dei to taper off by beginning 2007, with the hospital scheduled for completion in July of that same year.
But no information was forthcoming from the ministry of finance on the outstanding expenditure despite two emails sent by this newspaper on the 6 and 9 of April and followed up by a telephone call to the ministry this week.
MaltaToday asked Parliamentary Secretary Tonio Fenech a series of questions (see box) related to expenditure already made and that which still has to be made in relation to both construction and hospital equipment.
As yet no answers have been forthcoming and with the Labour Opposition this week alleging that Government has already forked out Lm151 million for the construction of a hospital that is supposed to cost Lm139 million, Government’s silence is all the more deafening.

Questions asked but no answers yet
1. In relation to the new agreement reached with Skanska last year, until December 2004 what is the amount of money Government has already paid Skanska for the construction of the hospital?
2. What is the amount of money forked out by Government in relation to the hospital equipment tender?
3. What is the balance Government has to pay Skanska until the projected date of completion on 1 July 2007?
4. What other expenses does Government have to fork out by July 2007 in other tenders such as that for the hospital’s IT infrastructure?
5. What is Government’s yearly projected capital expenditure for 2005, 2006 and 2007 in relation to the construction and equipment of Mater Dei hospital?

kurt@newsworksltd.com





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