The Feast of the Assumption, in common parlance, known as “Il-Festa ta’ Santa Maria” which was celebrated last Saturday is intertwined in our socio-economic, religious, historical, cultural and not least in the political amphitheatre.
Around this time the business activity slows down in certain sectors of the economy and blooms in others. Most of the export oriented manufacturing companies and other firms close for the summer shut-down. The business activity in the tourism sector is maximising its full potential. The multiplier economic effects of this sector percolate in other sectors of the economy. The public sector maintains the constant rhythm of efficiency as in the other months of the year.
During this time many residing in Malta make their way to Gozo - for a short break. It has become custom for many to flock to Gozo during the week of Santa Marija. Gozo would be choked with all sorts of business activities. Little elbow room to manoeuvre is left at this time of the year in Gozo. Tour operators, ferry thousands of tourists to Gozo for a day trip. The Gozo Channel vessels cruise back and forth to minimise waiting time for queuing passengers.
Unfortunately, like in previous years on the eve of the feast of Sta. Marija, a number of persons, this year 21, aged between 22 and 36 were forced to cut-short their vacation and will face charges on possession and/or trafficking cocaine, cannabis and ecstasy.
But this year Sta. Marija feast brought other issues to ahead.
Dr Simon Busuttil, Leader of Opposition did not take lightly the announcement that Electro Gas, a consortium, of privately owned companies, entrusted with the building of the new-power station have been granted a bank guarantee worth €360 million.
In normal practice bank guarantees and loans are sanctioned against collaterals. Private investors dig deep into their pockets to secure bank loans. This is not any different from those who may require a bank loan for whatever reason. But somehow for reasons which are not clear ElectroGas gained a bank guarantee authorised by Government.
However, notwithstanding this principle has now been compromised, Government failed to secure a good margin from the profits earned once the operation is up and running from ElectroGas. In simple terms people are taking all financial risk but will not share from the profits projected by ElectroGas.
There are other available instruments for private owned companies to raise funds. ElectroGas could have opted to float the company on the Malta Stock Exchange to acquire the necessary funding for the project. Issued secured bonds, for a defined period of time and pay a higher interest rate than those currently paid by banks. A Public-Private-Partnership could have been another financial vehicle to raise funds for the project.
No wondered this investment jarred from the word go.
Perhaps two pertinent questions should be addressed to the PL senior ministers steering the project namely Prof Edward Scicluna and Dr Konrad Mizzi.
Had the esteemed gentlemen, change for a short while their political hat and put their professional one, would they recommend a bank guarantee worth €360 million to any government? It goes without saying, unless, they are representing in their professional capacity a consortium. Is a government bank guarantee to privately owned companies good financial practice and good governance?
Understandably, they cannot give answers as they are totally committed towards the PL ticket but if they do answer. Oscar Wilde’s quote “The truth is rarely pure and never simple” would fit quite well.
But answers can be retrieved from other sources. There are financial independent institutions that can give an input and an objective insight on the €360 million bank guarantee. Economists and financial advisors may also give their contribution. Staying mum is not an option. We all know where the PN stands on this issue but we need to hear other voices.
Trust the cue will be picked-up and followed. This bank guarantee in addition to the alleged cases of corruption needs to be addressed by the competent authorities and other independent institutions.
As if this was not bad enough, this year’s feast of Sta. Marija brought us the news that Dr Godfrey Farrugia PL Whip is diagnosed with an aggressive form of prostate cancer. I take the opportunity to wish the gentleman a speedy recovery.
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