OPM will not withdraw memorandum with blacklisted company

Government will not withdraw the Memorandum of Understanding with the Chinese company blacklisted by the World Bank but will ask any company bidding in a prospective tender whether it was blacklisted by international institutions like the World Bank.

The OPM did not confirm whether the it  was aware that China Communications Construction Company was black listed before this was revealed earlier on today by MaltaToday.

"We welcome the offer by CCCC to conduct the feasibility study and look forward to the results which would kickstart a transparent and serious procurement process".

According to the OPM's spokesperson, the Chinese Government through China Communications Construction Company offered its expertise to conduct the said feasibility study for a bridge between Malta and Gozo and the government signed the MOU with a view to get the study done.

"The government has no strings attached and will go through tendering procedures once a decision is taken whether to go for any form of connection or not".

In opposition, the Labour Party had criticized the Nationalist government for commissioning German-owned Lahmeyer International as an energy consultant after being blacklisted by the World Bank until 2013 after it was found guilty of corruption

But the OPM spokesperson insisted that in the case of Lahmayer International, the company went actually through tendering process without anyone mentioning or realising Lahmayer was blacklisted. 

The OPM spokesperson also fell short of committing the government against accepting any bid from a blacklisted company insisting that "it will will keep its electoral pledge that every international company which will be entering a government tendering process will be asked to declare if it was blacklisted or found guilty of corruption by international institutions such as World Bank, the EU or European Investment Bank or any other jurisdiction from another country".

China Communications Construction Company (CCCC), the company that approached the Maltese government to conduct a study on the feasibility of a bridge between Malta and Gozo, has been barred from receiving financing by the World Bank till 2017 following a probe on fraud in road tenders in the Philippines. The reason given by the World Bank for debarring the company were fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.

In 2009 the 8-year ban was applied to China Road and Bridge Corporation.  But in 2011 the World Bank announced that the debarment applied to CCCC, described as the "designated successor entity to China Road and Bridge Corporation."

Under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until January 12, 2017.

In opposition, the Labour Party had criticized the Nationalist government for commissioning German-owned Lahmeyer International as an energy consultant after being blacklisted by the World Bank until 2013 after it was found guilty of corruption.

Lahmeyer had presented an 'Emission Assessment of Diesel Generator Units and Combined Cycle Gas Turbines - Comparison' report requested by Enemalta, which analyzed the level of emissions attached to each bidder's proposals for the extension. Unlike CCCC, which will be providing its services for free, Lahmeyer was paid for its services.