In a statement released this evening, former Prime Minister Lawrence Gonzi said that although a meeting was requested, he never actually sat down with former Foundation for Medical Services chairman Paul Camilleri to discuss the project closure agreement with Skanska for Mater Dei Hospital. He also said that the government still has the right to sue Skanska over the faulty concrete at Mater Dei Hospital.

Dr Gonzi said that on 7 January 2009, he received an email from architect Paul Camilleri who had requested a meeting with him. “This meeting never took place, primarily because of other pressing appointments I had that month, including an official visit to Germany. This can be verified by architect Camilleri himself,” said Dr Gonzi.

“I reiterated what I have said in the past days. The project closure agreement was never brought to Cabinet,” said Dr Gonzi.

He continued: “More important, however, is the fact that Camilleri’s notes show that it was not true that the waiver clauses impede the government to sue for shoddy work or fraudulent or false declarations about standards of construction.”

Dr Gonzi said it was also not true that the government would lose any rights according to law because of the clauses in the waiver. “This results clearly from the notes taken by Camilleri which give a detailed explanation of the legal advice given to the Foundation for Medical Services by its lawyers Camilleri Preziosi,” said Dr Gonzi.

He said it was strange that the government made a public declaration to say it had no right to sue for damages when it already knew that this was not the case and that it had written records of the legal advice given before the Project Closure Agreement was signed.” 

Dr Gonzi's statement came after articles in the media reported on an exchange of emails on 7 January 2009 between himself, Paul Camilleri – the president of the FMS at the time, former health minister John Dalli and Skanska’s Lars-Erik which showed that Clause 9, known as the waiver exonerating Skanska from damages for faulty concrete used at Mater Dei Hospital already existed in the settlement agreement and it was later elaborated upon in the final settlement agreement. 

Correspondence shows that on 7 January 2009, Mr Camilleri had written to Dr Gonzi requesting a meeting to discuss the contract closure negotiations with Skanska which included the waiver. But no attachment of the agreement was sent to Dr Gonzi.

Mr Camilleri told Mr Gonzi in the same email that the idea was to first obtain FMS board approval, subsequently Decision Group approval, (essentially Minister Dalli’s approval) and then Cabinet’s approval however this was never discussed at Cabinet level.

An e-mail on 15 January 2009 was exchanged between Mr Camilleri and Skanka’s Lars-Erik which read that ‘this is to inform you that the FMS Board have approved the ‘Terms of Settlement’ agreement.

On 18 February Mr Camilleri sent an e-mail to Erik Lars stating the revised agreement had been forwarded and an e-mail sent by Mr Camilleri to a certain Dr Adrian Mallia read that the finial revisions included no changes to clause 2, 5, and 9.

On 19 February 2009, the agreement was signed.

The string of emails – which are now in the hands of the Police – were initially sent to retired judge Philip Sciberras yesterday – who led the inquiry - by lawyer George Hyzler on behalf of Paul Camilleri but since the inquiry was concluded, the retired judge handed the documents to the Prime Minister’s office who in turn forwarded the e-mails to the Police Commissioner.

Minister 'baffled'

In reaction to Dr Gonzi’s statement, Health Minister Konrad Mizzi said he was “honestly baffled” by the latest claims.

Speaking to the media, he said that following the publication of the inquiry, Mr Camilleri divulged the e-mail exchanges and Dr Gonzi replied that a meeting on such an important matter was not held, yet, the agreement was signed a month later.

He said he was also baffled by Dr Gonzi’s statement that the contract was never taken to Cabinet.

Dr Mizzi said that even if Dr Gonzi was not aware of the contents of the agreement, his finance minister at the time knew because one particular e-mail sent to Alan Caruana, the head of Tonio Fenech’s secretariat, included an attachment with the actual terms of the agreement.

“It is evident that the PN government knew what was going on and the protagonists are now in panic mode.”

Dr Mizzi said that although Dr Gonzi was trying to downplay the issue of the waiver, the FMS did not challenge Skanska over defects in reservoirs in 2011 precisely because Skanska quoted the waiver.

But as revealed by the Malta Independent on Sunday, the supposed waiver exonerating Skanska from damages for faulty concrete used during the construction of Mater Dei Hospital does not, in actual fact, exist. The waiver that has given rise to so much controversy actually referred to a settlement of mutual disputes between the Foundation for Medical Services (FMS) and Skanska Malta; it was not a waiver from the possibility of future litigation over work carried out at the hospital.

Click on link: http://www.independent.com.mt/articles/2015-05-31/local-news/Mater-Dei-agreement-no-waiver-exonerating-Skanska-over-faulty-concrete-6736136470