Alberta-Solarig directors mum over government suggestions of fraud in PV contract

The members of a photovoltaic consortium whose bank guarantee is being alleged to be the subject of a potential fraud by the energy minister, are refusing to comment on the claims coming from inside government.

George Barbaro Sant, his daughter Liz Barbaro Sant, and Antoine Busuttil of the Alberta Photovoltaic Consortium and Solarig Overseas Holdings companies all gave MaltaToday identical statements when asked to comment on the potentially explosive allegations.

“We would not like to get involved at this stage. We are not releasing any information. At this point we prefer to let the political parties talk,” the three individuals said in separate comments.

The allegations centre around a banking document from the defunct Bancaja Bank, which should have certified the capital solidity of Spanish photovoltaic manufacturers Solarig, and suitability for a €35 million contract to cover government buildings in solar panels and sell the energy to government at preferential feed-in tariffs.

Energy minister Konrad Mizzi revealed in parliament on Monday a letter of intent, signed by former resources minister George Pullicino’s permanent secretary Christopher Cianter, addressed to the Alberta Photovoltaic Consortium: the letter confirms the acceptance of the Alberta-Solarig officer for the lease of 67,000 square metres of rooftops and sale of energy at 23 cents per kWh.

According to Mizzi, the OPM’s internal audit and investigations department (IAID) had been investigating the €35 million photovoltaic contract, namely a possible fraudulent document after a bank document supposedly issued by a Spanish bank lacked the necessary signature.

Issued by Bancaja, the document notifies that the Solarig Holding possessed the liquidity to operate the 4.5MW during the next two years. “Solarig has maintained a banking relationship with us for the last three years without any incidence. We know of Solarig’s international business plan and its capacity to develop international solar projects.”
But the government has said that the Bancaja bank had already been taken over by another bank when the document was issued in 9 February 2012.

Additionally, the 23 cents per kWh feed-in tariff was committed to by the previous government, before being approved by the Malta Resources Authority, and higher than the 16c payable to Enemalta clients.