The Malta Independent 10 July 2025, Thursday
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Parliament: Joseph Muscat Questions involvement of former shipyards’ CEO in privatisation process

Malta Independent Tuesday, 18 May 2010, 00:00 Last update: about 12 years ago

Opposition Leader Joseph Muscat yesterday asked the government a number of specific questions during the continuation of the parliamentary debate on the transfer of the dockyard to private buyers.

Dr Muscat was particularly interested in the role former CEO of the Malta Shipyards, Chris Bell played in negotiations for the dockyard privatisation especially vis-à-vis the Malta Investment Management Company Limited (MIMCOL) and whether he continued to be consulted after his term ended. If so, Dr Muscat asked whether he was getting paid for this and whether communication with him took place in formal or informal manners.

He also asked the Prime Minister whether his office ever received information of people involved in the adjudication process over the past two years, who had asked for remuneration.

“I am giving the benefit of time and doubt for him to give us all necessary information before we proceed further,” Dr Muscat said.

He insisted Finance Minister Tonio Fenech and Dr Gonzi were to answer his questions before the debate on the subject is over.

The transfer of land and the piece of law by which the dockyard is being sold at a “ridiculous” price has the “arrogance” and “deceit” of Nationalist governments at its base, Dr Muscat believed.

At least €40 million in investment from people’s taxes have gone to waste, he said.

The General Workers’ Union claims this figure adds up to €80 million when taking into consideration overheads that would still have been necessary.

But the government is nearly boasting of how much the dockyard has lost over the years and how much better its employees will be faring, he said.

This was similar to the government’s confusion on the promised compensation money to bus owners following the public transport reform, or as much as the cost for the new oncology hospital costs, he felt.

The Fairmount contracts pushed this enterprise completely off target and had a direct impact on the way the government disposed of this entity. This was a crucial turning point in the dockyard history and access to dockyard accounts was only granted when it was too late, probably even after interested buyers were shown the books, Dr Muscat said.

Even if dockyard employees carried out works on the Fairmount ships for free, there was not enough money to cover the necessary prime materials. Yet no one ever carried political responsibility for this, he said.

“What is the government’s problem in having a fully fledged investigation?” Dr Muscat asked.

He also complained that part of the submissions made by the company which will be taking over the dockyard – Palumbo – were missing.

“Why is the government not publishing this or at least asking for a justification and expecting us to give the rubber stamp and the go-ahead?” he asked.

Dr Muscat also pointed out that Prof. Peter Serracino Inglott also expressed scepticism on how dockyard employees were treated.

It is difficult to find skilled workers of such calibre in Mediterranean countries, he said, and now they are acting as drivers or gardeners while their much needed skills are being lost.

Dr Muscat added the business was “absurd” and makes people suspect a lot of things.

He also pointed out that the motion being discussed did not specify what the dockyard land will be used for. This could pose problems especially if it is sold to third companies in the future.

The Labour Party’s 15 measures against corruption, announced last week, were not simply expected with regards to the power station extension contract but for all government administration in general, he said.

PL MPs Helena Dalli and George Vella, also spoke during yesterday’s debate. Both felt very close to dockyard employees and said many of its employees had not yet found jobs and had to continue facing insults because resources had been wasted.

Parliamentary Secretary for Small Businesses and Land, Jason Azzopardi said he is the son of a dockyard employee and, like others Dr Vella and Dr Dalli had mentioned, his father had also suffered injuries at the same work place. Yet bad practices had still been in practice.

“This was the truth and we are to face it,” he said.

The contract this parliament should be approving, Dr Azzopardi said, will be seeing investment in machinery, employee training, and the end of subsidies to the entity. For the past 40 years, some €1 billion were paid to the entity and the dockyard was only profitable in nine years. Similarly, the ship building was only profitable in two years, he said.

“The dockyard is being given a new lease of life,” Dr Azzopardi noted. “This is not its end”.

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