Mizzi asks Police to investigate €35 million PV contract issued under previous administration

The government has asked the Police to investigate a €35 million contract issued under the previous administration after an important document was found without the necessary signature.

Prime Minister Joseph Muscat announced in parliament that the document in question will be published by the government. The document was handed to reporters present in parliament. Issued by Bancaja, the document notifies that the company "SOLARIG Holding SA (and all the controlled and owned companies) has the Liquidity needed to undertake the MRRA/M/9/2009 PV project in Malta up to approximately 4.5MW during the next two years."

"SOLARIG has maintained a banking relationship with us for the last three years without any indicidence. We know of SOLARIG's international business plann and its capacity to develop international solar projects."

According to a government's spokesman, the Bancaja bank had already been taken over by another bank when the document was issued on 9 February 2012.

In June, Maltatoday revealed that the internal audit and investigations department (IAID) was investigating the €35 million photovoltaic contract awarded to the Alberta Photovoltaic Consortium before the March 2013 election.

The investigations commenced after MaltaToday revealed that government is refusing to honour the contract after claiming that the contract will oblige taxpayers to fork out €11 million more to the private firm on feed-in tariffs for energy sold to Enemalta from solar panels.
According to the contract, the feed-in tariff payable to Alberta, which will install PV panels over government building roofs, is much higher than the cost of energy per kilowatt-hours that normal residences pay.
The 25-year contract covers the installation of photovoltaic panels on the roofs of government buildings nationwide.

But in parliament this evening, Energy Minister Konrad Mizzi revealed that the Police has been asked to investigate the matter.

The contract was signed with a feed-in tariff payable at 23 cents, when it should have been at 16 cents.

“We found a document that should have been issued by the bank, but which lacked the necessary signature. When the bank was contacted, they said that no such document could have been issued from them without the signature,” Mizzi said.

A government source told MaltaToday that the document, supposedly issued by a Spanish bank, certifies that the company is financially sound to operate.

The Opposition has now asked the government to table the document. Opposition MP George Pullicino also asked Mizzi to substantiate allegations “which businessmen say about him [Pullicino]”.

Mizzi, during the parliament speech, asked Pullicino "how he could have allowed such a tender to be awarded".