The Labour Party yesterday posed a long series of questions about Michael Falzon, chairman of the Water Services Corporation, after he wrote a letter to a newspaper revealing that he was professionally involved as an architect with Polidano Group, in the development of residential properties and other projects. The Polidano Group has been awarded a multi-million contract by the WSC for the building of a drainage treatment plant in the north of Malta.

The MLP said Mr Falzon had admitted he had had this involvement for the past five years. The Polidano Group is awarded contracts by the WSC, including the drainage treatment plant, variously estimated to cost Lm5 million, Lm3.5 million, and Lm2 million.

According to Mr Falzon, the MLP said, the drainage treatment plant contract was awarded to Polidano in 2004, two years after Mr Falzon entered into his business relationship with Polidano. The facts, revealed freely by Mr Falzon, raised serious questions about the possibility, actual or potential, of a serious conflict of interest on the part of Mr Falzon. It definitely was not enough for Mr Falzon to have said that he had had nothing to do with the awarding of the treatment plant contract to the Polidano Group.

Mr Falzon receives some Lm15,600 a year out of public funds for his chairmanship of the WSC, which he himself described as a part-time job. Many questions arose which Mr Falzon had the duty to answer, the MLP said.

He should say whether he felt there was the possibility, actual or potential, of a serious conflict of interest on his part. He should explain why it had taken him five years to reveal his business relationship with Polidano, and why exactly he chose now to do so, when an issue had arisen relating to costs on the treatment plants.

Mr Falzon should say whether, before he revealed his relationship with the Polidano Group, he had already informed Minister Austin Gatt, who was politically responsible for the WSC. If he had done so, he should say when he had done that. Mr Falzon also had the duty to explain if he had also informed his WSC board colleagues about his relationship, and if he had, when he had done so.

The Labour Party said Mr Falzon should also clarify whether he remained present at WSC board meetings which discussed the treatment plant which is to be built by the Polidano Group.

On his part, Minister Austin Gatt also had explanations to give, the MLP said.

Dr Gatt should say whether he knew about the relationship between the WSC chairman and the Polidano Group before the publication of Mr Falzon’s letter.

If he knew, Dr Gatt should say when he became aware of this and declare whether this relationship was acceptable to him and whether he thought there was a possibility, actual or potential, of a serious conflict of interest on the part of Mr Falzon.

The government could not remain silent in the light of what Mr Falzon had revealed.

The declaration the Prime Minister made to One News that there was nothing wrong in the relationship between the WSC chairman and the Polidano Group was not only an unsatisfactory explanation, but was a disquieting declaration which confirmed that Malta today was run by a Prime Minister who found everything to be acceptable, and that Malta had a government whose policy was one based on the concept of friends of friends.