BWSC | ‘There was smoke, but no fire’ Auditor General tells PAC

Appearing before the PAC yesterday evening, the Auditor General was grilled by MPs for two hours, while Labour MP Evarist Bartolo complained that the PAC had been “castrated” because it could not summon witnesses other than the AG.

Infrastructure Minister Austin Gatt asked Anthony Mifsud a number of questions whether the National Audit Office (NAO) had found any evidence of corruption or trading in influence during the investigations on the contract and if the same NAO would have reverted to the police.

“I found no hard evidence of corruption but we found many coincidences which made one wonder,” he said, adding that “there was smoke, but no fire.”

The Auditor General explained that had evidence of corruption been found, the NAO would have reverted to the police.

In a legal style grilling, Minister Austin Gatt confronted the Auditor General with a series of follow-up questions to ensure the point.

While going through the process from tendering to adjudication of the contract, Gatt said that had there been corruption, there would have been people who tried to corrupt, and people who were corrupted.

He listed almost ten stages of the entire process and the persons involved during the decision process, and after each case, he asked the Auditor if there was any evidence that these people had been corrupted.

The Auditor General replied: “there was no evidence.”

In view of the information available to the Audit office. No corruption was found Mifsud said, however he did add that “there had been lack of cooperation from some people who the NAO had questioned.”

Labour MP Helena Dalli said that the ‘smoke’ Anthony Mifsud referred to didn’t seem to be “empty words,” but a concern which led him to look for fire.

Mifsud replied that there were a series of coincidences throughout the process, and explained that Enemalta always held its meetings with BWSC after having met the other bidders.

He added that it was “strange” how Lehmayer initially offered its services and was turned down, and then Enemalta itself sought its services a month later.

Anthony Mifsud added that the lack of cooperation was evident mostly from BWSC agent Joseph Mizzi.

Deputy Auditor-General Charles Deguara said when questioned that Joseph Mizzi had not been forthcoming about his meetings with BWSC. He also refused to answer questions.

The transcript of Joseph Mizzi’s questioning could not be published as requested by the MP’s as legal advisor Prof. Ian Refalo said NAO proceedings were protected by the Professional Secrecy Act.

Following an uproar in the committee over emails sent by Anthony Mizzi, Labour MP Evarist Bartolo said that the NAO had said that the tendering procedure should have been stopped when the emission thresholds were changed. “This, surely, was based on firm information, not smoke,” he said.

He asked if  Joseph Mizzi had given NAO any information about e-mail exchanges “after 2005” and whether BWSC officials had given any new information to NAO.

The Auditor replied in the negative..

Evarist Bartolo observed that BWSC had in fact “congratulated” Joseph Mizzi for his contacts and intelligence network during the whole process, and pointed out how in 2005 - on the basis of exchanges with  their middleman - BWSC was already preparing to bid to supply a 100MW generating plant when, at the time Enemalta was said to be interested in a smaller plant.

“Within a year, Enemalta changed its position, fitting neatly with what BWSC had been preparing,” Bartolo explained.

He added that Joseph Mizzi was able to arrange the timing of Enemalta’s meetings with the bidders, the specifications of the tenders, and the legal emission thresholds

Intervening once more, Minister Austin Gatt referred to claims that emails exchanged between Mizzi and BWSC alleged “tapping higher into the political hierarchy,” as revealed by the Oposition, which then led the minister to ask the AG if his investigations had established if anyone from the government had actually ever met anyone connected to BWSC?

The Auditor replied that “no such link had been established,” but added that he had not questioned the ministers, other than minister Austin Gatt who volunteered to come forward.

It was here that Austin Gatt stressed that all the members of the government were prepared to submit sworn statements that they had no contacts with BWSC.

The investigations found no evidence of contacts with Enemalta staff, and the same was the case for  the Contacts Committee.

The committee was adjourned for December 1.