There was a substantial amount of new services in the second contract signed between Voice of the Mediterranean and Cyberspace Solutions although the nature of work was similar, Managing Director Tony Cassar said yesterday.

The first contract cost Lm11,000 per year compared to Lm36,000 for the second contract, Mr Cassar told the Public Accounts Committee in Parliament which was discussing the Auditor General’s report on the operation of the Voice of the Mediterranean. At the beginning of the session, chairman Charles Mangion said that a request for filming the 1st minute of the session was turned down by the government whip. However, Minister Austin Gatt said that he had been informed that permission was forthcoming although he added that he could not go against whip’s orders. Permission was therefore refused.

Questioned by Dr Mangion, former VOM councillor Mannie Spiteri said that the board met once or twice a year adding that other informal meetings with the management took place from time to time. He said that during these meetings it was suggested that three quotations would be obtained for procurement of goods exceeding Lm 1,000 but confirmed that this was not an order.

Replying to a question by Dr Gatt, Mr Spiteri confirmed that the informal committee had no legal standing and neither did the radio station. He also said that financial and administration matters were not discussed during board meetings.

Questioned by Dr Gatt on the purchase of a vehicle by the Deputy Managing Director costing Lm 15,000, Mr Spiteri cited brittle relations between the two countries affecting the stance of the council which took no further action on this matter. He said that there was little hope of the council ever meeting in the future.

Questioned by Dr Mangion, Tony Cassar, Managing Director of Cyberspace Solutions confirmed that two contracts were drawn up to provide IT services for VOM. He also confirmed that the move from Floriana to Birkirkara included more man hours and services which were reflected in the eventual fee charged.

Minister Gatt objected to a line of questioning by Dr Mangion who had asked Mr Cassar to specify the differences between the two contracts. Dr Gatt insisted that it was the representative from the National Audit Office who had to prove that both contracts were similar as asserted in the NAO report.

Dr Gatt then presented a motion so that the first witness to be heard on the IT contract matter would be Louis Borg, a consultant for the NAO. The motion passed 4-3.

Questioned by Dr Mangion, Mr Borg confirmed that both contracts were basically similar with the first being a beginning and the second a continuation. He also confirmed that the maintenance agreement in both contracts were practically the same apart from one time costs such as web design and implementation.

Mr Borg confirmed that the first contract had included a provision for 24 hour services whilst the second did not. Replying to questions by Dr Gatt, he confirmed that he did not possess a formal qualification in IT and networking.

Replying to questions by Dr Gatt and Parliamentary Secretary Tonio Fenech, Mr Borg said that when he went to the Birkirkara premises to check the contents of the station according to the second contract, he found a substantial amount of equipment missing. The equipment found at the station consisted of three servers, a few monitors and some modems, he added.

Mr Borg said that in his opinion, the equipment at Birkirkara was well in excess of what was necessary at the station. He said that out of the five servers purchased by VOM, only three were in operation.

Replying to further questioning by the committee, Mr Borg said that the difference between the two service contracts was exorbitant adding that uploading was carried out by VOM’s own technicians.

Questioned by Mr Brincat, Mr John Burlo from the NAO confirmed that all IT services at VOM were in the hands of Cyberspace Solutions. He also confirmed that the servers bought for VOM exceeded the market price currently in force.

Mr Borg said that the quotation by Cyberspace Solutions for the transfer from analogue to digital had included excessive hardware. He also confirmed that 5 servers were more than was required for the radio station and this was confirmed by another IT expert, Dr Sergio D’Amico.

Mr Burlo said that under questioning, Mr Cassar did not deny and neither confirmed that the two contracts were different. He said that Mr Cassar said that he had carried out a substantial amount of work that was not listed in the contract.

Mr Borg also confirmed that apart from the second contract, invoices were found totaling Lm150 per month for internet bandwith increase.

Auditor General Joseph Galea also confirmed that a number of invoices had been found payable to Cyberspace Solutions for hotel accommodation.

Minister Gatt also quoted from a report prepared by the Foreign Affairs Ministry where the Information Management Officer Anna Catania had stated that the price for a 24 hour service was justified as per contract between VOM and Cyberspace Solutions. Mr Borg said that he did not agree with such a conclusion.

Questioned by Mr Brincat, Mr Cassar said that he was awarded the first contract after having made a sales presentation to Mr Richard Muscat after which a price was agreed after negotiations. He also denied any conflict of interest in his role as consultant and provider of IT services at VOM.

Mr Cassar said that he was verbally asked to provide consultancy and there were no written guidelines for such services although he had been briefed by Mr Muscat on where he wanted the station to go. He also confirmed that the first contract was drafted by Cyberspace Solutions.

Questioned by Dr Mangion, Mr Cassar said that the circumstances of the second contract were slightly different as this included a substantial number of new services and developments that were to take place in the future.

Asked by Ms Helena Dalli, Mr Cassar confirmed that he got to know Mr Muscat through his friendship with the latter’s son at school. He also said that it was not his competence to state whether the price quoted for the purchase of servers was higher than the market place at that time.

Mr Cassar said that the hardware requirements at the Floriana and Birkirkara premises were completely different. He said that Cyberspace never used VOM for third party work.

Asked by Dr Gatt, Mr Cassar said that the purchase of five servers was necessary due to the considerable number of services that VOM was about to offer. He said that the second contract included much more work than the first including a substantial increase in website services.