The Vitals Global Healthcare project came “out of the blue” and bypassed Projects Malta completely, Projects Malta’s former Executive Chairman Adrian Said told the public inquiry into Daphne Caruana Galizia’s murder on Wednesday.
Testifying, Said explained that he had felt side-lined because the hospitals project came out of the blue and had bypassed Projects Malta and was directly subcontracted through direct orders.
Asked about an MoU signed between the government and VGH in October 2014, Said testified that he had only heard about it recently in the media.
Caruana Galizia family lawyer Jason Azzopardi said that in May 2015 an RFP was published on the hospitals concession and a short time frame was given for the size of the proposal. He had felt it wasn't sufficient, the lawyer suggested. The witness, Said, agreed.
Said also testified that he was not invited to a meeting in the last week of June 2015 when the preferred bidder was announced – with Chief Justice emeritus Said Pullicino observing that it is “not normal” for the head of the agency not to be invited.
William Wait, the Executive Chairman of Projects between between November 2015 and July 2017, also testified on Wednesday.
In the previous sitting former police commissioner, Lawrence Cutajar testified.
The public inquiry is tasked with, amongst other things, determining whether the State did all it could to prevent the murder from happening.
Caruana Galizia was murdered in a car bomb just outside her Bidnija home on 16 October 2017. Three men, George Degiorgio, Alfred Degiorgio and Vince Muscat, have been charged with carrying out the assassination, while Yorgen Fenech is charged with masterminding the murder.
Melvin Theuma, who acted as a middleman between Fenech and the three killers, was granted a presidential pardon last year to tell all.
The inquiry is led by retired judge Michael Mallia, former chief justice Joseph Said Pullicino and Judge Abigail Lofaro.
The full commentary on the sitting can be found below:
11:54 That's it for today. Thank you for following.
11:54 The next session of the inquiry will be held on Friday 28 August at 9am. Alfred Camilleri, the permanent secretary at the finance ministry will testify. The following Wednesday, engineer James Camenzuli and Energy Minister Michael Farrugia are expected to testify. Former police commissioner Lawrence Cutajar will continue his testimony on Friday 4 September.
11:48 Wait is the last witness for today. The session is over.
11:46 There are no further questions for this witness and he is dismissed.
11:46 Wait confirmed that Konrad Mizzi's wife, Sai Mizzi, had been an employee at Malta Enterprise.
11:45 Projects Malta had nothing to do with Montenegro [and the wind farm project in which Enemalta invested] Wait says, in reply to questions by the board.
11:43 Questioning moves on. Wait says he dealt a lot with Ronald Mizzi at the time, but not with minister Konrad Mizzi.
11:42 The NAO had said that the value of the ITS site was €67 million, which was €11 million more than what was agreed between DB group and the government. Azzopardi exhibits a copy of the Auditor General's report.
11:40 The word "limited exposure" is subjective, replies the witness.
11:38 Azzopardi asks why Projects Malta did not publicise or publish the residential component of the ITS project. The Auditor General observed in his report on the project that it had not been given enough exposure. "Was the Auditor general wrong?" asks Azzopardi.
11:37 Judge Mallia asks: "You've got a site worth millions of euros, and you take it on yourself and not involve the contracts committee? Is it not a duty to make the contracts committee aware of what is happening?"
11:37 Wait says that he was in charge of administering the concession. Wait says that they did not go to the contracts department because it was a concession.
11:36 Lawyer Jason Azzopardi asks Wait about the ITS concession and whether he had instructions or direction of any sort.
11:32 Wait says that TUM Finance and TUM Invest are something recent and that he got involved after he resigned from Projects Malta.
11:30 He is asked about his other company involvements, notably TUM Invest and Luxury Living plc.
11:30 Wait clarifies that he was not working on the projects before leaving the entity. He mentions the Chalet project in Sliema as one of the projects. He adds that he left because he felt he had "too much on his plate".
11:27 The board hears how a direct order was given to Perit Maniera, who was paid €700,000 to prepare a project for ITS which was not carried out. The inquiry board points out this was equivalent to the entire budget for a year.
11:24 Wait says that Mifsud Bonnici carried out services "over and above" his role.
11:24 The evaluation committee was not dealing with the due diligence process, Comodini points out, asking why Mifsud Bonnici was paid by Projects Malta. She also asks how when Mifsud Bonnici was on the evaluation committee, Projects Malta handed out direct orders to his law firm.
11:19 Wait says that Aron Mifsud Bonnici held several roles at the same time.
11:19 Comodini Cachia asks whether Aron Mifsud Bonnici was on the evaluation committee at the time he was the company secretary to Projects Malta. Wait says he was, but asks to be shown the dates in order to be sure. The lawyer shows him the documentation, including Mifsud Bonnici's resignation as company secretary dated 9 March 2018 ,and his resignation as director dated 3 December 2015.
Aron Mifsud Bonnici - Konrad Mizzi's lawyer and a former director and secretary at Projects Malta
11:15 Wait says that insofar as he is aware, the board never held meetings at the energy ministry and Konrad Mizzi was never present. Sometimes permanent secretary to the energy Ministry would be present, he says.
11:12 Chief Justice Emeritus remarks that he cannot understand how the Finance Minister said that he was kept in the dark.
11:11 Comodini Cachia asks a question about board meetings and their frequency. Wait says that the board met around 10 times in 18 months. The meetings would be held in the board room at the Finance Ministry.
11:06 Wait says that he had never dealt with Vitals Global Healthcare (VGH), the company that was awarded the hospitals concession. He says the ITS project - the transfer of the former tourism school in Paceville to the DB Group for the development of a residential, commercial and hotel project - was similar to the VGH one, in that Projects Malta facilitated the process.
11:04 Judge Lofaro notes that 138 direct orders were given. Wait says that there was a committee composed of himself, the chief financial officer and Joe Cuschieri, the deputy chairperson. "These were passed on to the permsec," he says.
11:01 He insists that nobody from Projects Malta was involved in the Electrogas deal.
11:00 Wait adds that the evaluation board includes James Camenzuli, Manuel Castagna and Aaron Mifsud Bonnici as secretary. Mifsud Bonnici was also the secretary on the negotiation board.
10:59 Wait explains the role of Projects Malta. "It wasn't a role where we would negotiate or deal with the bidders. There is the evaluation committee which would ask us for technical services, which we would procure..."
10:56 Wait: "Whenever information was requested, we always gave it. It would be routed through Alfred Camilleri, the permanent secretary at the finance ministry [who also sat on the Projects Malta board]."
10:55 Judge Abigail Lofaro says that Finance Minister Edward Scicluna had described Projects Malta as non-transparent and hard to get information from.
10:54 Wait: "Projects Malta had no involvement with the Electrogas deal since the government entity was set up after the power station tender had been awarded. I had no involvement in the Electrogas deal."
10:51 Wait says he never had any contact with Keith Schembri, almost none with Joseph Muscat and would correspond mostly with Ronnie Mizzi, the permanent secretary at the energy ministry headed by Konrad Mizzi.
10:50 Wait says he cannot explain why he was the only one criticised for his conflicts of interest, when there were others who had this problem. "Maybe because I am the chairman?" he asks.
10:49 As non-executive director of so many companies, Wait says he has many potential conflicts of interest. "I am always careful to excuse myself from the relative board meetings when such conflicts arise. I am very careful," he says.
10:47 Wait says that around January 2014 he was chairman of Water Services Corporation and was on the ARMS board. "It was a direct appointment by the minister in charge at the time, Dr Konrad Mizzi." he says. He lists other companies which he is involved in, including Tum Finance, an offshoot of the Tum Invest Group, owned by Anthony Fenech, a relative of Yorgen Fenech, the man accused of masterminding the murder of Caruana Galizia. Tum Finance and Tum Invest are distinct from the Tumas Group and Yorgen Fenech was not involved in these companies.
10:44 Wait introduces himself, giving an overview of his career. He became executive chairperson of Projects Malta around November 2015, ending in July 2017. He was also the non-executive chairman of Malta Enterprise, a role which he maintains to this day.
10:40 William Wait now takes the stand.
10:39 Adrian Said steps off the witness stand.
10:39 Answering a question from the board, Said says: "Keith Schembri never had anything to do with Projects Malta."
One of the most controversial deals in recent years: it bypassed Projects Malta completely, Adrian Said testified
10:39 Said says that he was never summoned by the NAO. He adds that he had gone back and checked the minutes of the meeting and explains that at the time the government was looking for a rehabilitation hospital.
10:38 Azzopardi quotes from a report by the National Audit Office which describes the process as "staged and deceitful".
10:35 Said explains that at the meeting there were John Valenzia, Eman Schembri, Mr Wait from Projects Malta. He says that he may not have been invited because they knew he was non-executive chairman.
10:34 Said Pullicino comments that it is "not normal" for the head of the agency not to be invited.
10:33 Replying to a question by inquiry board member, former chief justice Joseph Said Pullicino, Said says that when the preferred bidder was announced during a meeting in the last week of June 2015, he was not invited. "In fact, I had asked who was invited and was told that the consultants and other people from Projects Malta were there," he adds.
10:31 Said: "It depends on the investor's financial strength."
10:30 Azzopardi: "For somebody to come up with the money for a concession of hundreds of millions for a project like that of the hospitals, would an investor be able to do this in the said time frame?"
10:30 Azzopardi says that in May 2015 an RFP was published on the hospitals concession and a short time frame was given for the size of the proposal. He had felt it wasn't sufficient, suggests the lawyer. The witness agrees.
10:28 Said: "I say yes because I found out about it in the media, recently."
10:28 Azzopardi: "In October 2014 an MOU was signed between the government and Vitals, do we agree?"
10:26 Azzopardi asks him whether he agrees with the statement that the hospitals concession to the private sector is the biggest concession given by the government in recent years. "Yes, it is one of the biggest," Said replies.
10:24 Caruana Galizia family lawyer Jason Azzopardi now questions the witness.
10:24 He adds that "every project in Malta has its controversy" and he is not one who likes controversy.
10:23 Said: "I am used to the private sector and having absolute control over projects, and in the government sector that is not how it works."
10:22 The witness insists that he had resigned from Projects Malta for personal reasons, with the panel pointing out that he had previously said that it was because he felt the hospitals deal was done too quickly.
10:21 Comodini Cachia asks whether at Mimcol the minister ever comes and says 'you must do this project'. "No," he replies. "And at Projects Malta?" Comodini Cachia asks. "Yes," says the witness.
10:19 As Mimcol he had never given a presentation to Cabinet, he says. But he tells the board that he is aware that after his time there had been presentations to Cabinet.
10:18 To a question from the inquiry board, Said excludes the possibility that he had resigned his chair at Projects Malta because of irregularities he was witnessing.
10:17 Said explains that he had felt side-lined because the hospitals project came out of the blue and had bypassed Projects Malta and was directly subcontracted through direct orders.
10:16 Said continues: “I did not receive direct requests from the finance ministry for more information. While Minister Scicluna may have his reasons for saying what he said, the permanent secretary had issued a statement on the matter saying that the Finance Ministry had all the information it required on the hospitals' privatisation deal. I was never requested any information by the Finance Ministry. However, I did inform the ministry about certain projects.”
10:14 Said says that the permanent secretary of the finance ministry sat on the Projects Malta board.
10:09 Comodini Cachia refers to the testimony of Finance Minister Edward Scicluna and to his statements on Projects Malta.
Projects Malta was set up in 2014. Finance Minister Edward Scicluna said during a previous sitting that transparency was not always forthcoming from the entity.
10:08 He reiterates that Projects Malta was not involved in the drafting of the RFP for the gas power station project, which was eventually awarded to Electrogas. “Projects Malta was registered the year after,” Said adds.
10:08 Said is asked about Mifsud Bonnici’s role. “I think his role was more directly linked to the ministry than to Projects Malta," the witness says, adding that he had asked the same question at the time.
10:07 Said: “Projects Malta was not involved in the drafting of the RFP. It was created by a law firm appointed by government. We received a direction that the RFP needed to be published suddenly. The law firm was Ganado and Associates. The main coordinator was Aaron Mifsud Bonnici. He had approached Ganado to draft the RfP. Mifsud Bonnici was a company secretary to Projects Malta.”
10:06 Caruana Galizia family lawyer Therese Comodini Cachia asks about his "peripheral role". The hospital project was an idea of government which then gave its administration to Projects Malta, suggests Comodini Cachia.
10:04 Judge Michael Mallia asks whether the Gaffarena/Cafe Premier cases ever landed on his desk. Said says that they hadn't as they predated Projects Malta.
10:04 Said: “I have nothing to do with Electrogas and was never involved in any capacity. The Cafe Premier deal also predated Projects Malta.”
10:03 Said says that the Electrogas project – the gas power station and LNG terminal at Delimara - predated Projects Malta.
10:02 Asked whether Mizzi was directly involved, Said says that Projects Malta was in communication with the permanent secretary, Ronald Mizzi. “In my time, there were four or five projects. First of all, Trade Malta, secondly yachting promotion, another project was embellishment of roads (ELC) through a PPP, and fourth was embellishment of public beaches with the assistance of the private sector,” he says.
10:01 Mentioning St Luke's Hospital, Said says that until January 2015 the idea was to have an “administrative city”. At the time, Konrad Mizzi was the minister in charge of Projects Malta. There would be political direction, he said.
10:01 Projects Malta is fully owned by the government. He explains that Trade Malta is a joint venture between the government and the Chamber of Commerce. Said says that ideas were floated either by the Projects Malta board, the ministries, or private individuals.
09:59 Projects Malta was created in 2014. Projects were identified, he says, mentioning joint ventures with the chamber of commerce, yacht clubs, road embellishment and "a number of ideas about St Luke's Hospital". There was an emphasis on trade promotion and reduction of bureaucracy, he adds. The aim of the entity was more effective coordination, he says.
09:48 Said says that his resignation from Projects Malta came as he felt his role was "too much on the periphery".
09:48 Said says he has been involved for 16 years in economic research and management consultancy. He worked at Mimcol and later became executive chairman at Projects Malta. He is today non-executive chairman of Mimcol.
09:46 Said is asked for general information about his career and political appointments.
09:44 Adrian Said from Projects Malta takes the stand. He is assisted by lawyers Dean Hili and Roberto Montalto.
09:43 The panel of judges walks in and the sitting begins.
09:30 We are outside the court hall waiting for the Caruana Galizia public inquiry to start.
09:28 Good morning.