The Malta Independent 8 March 2021, Monday

Government would need to pay over €417 million to terminate Electrogas contract, PAC hears

Kevin Schembri Orland Wednesday, 3 February 2021, 16:36 Last update: about 2 months ago

The government would need to pay over €417 million for terminating the Electrogas power station deal, the Public Accounts Committee (PAC) heard.

Auditor General Charles Deguara was answering questions before the PAC. It was said that due to liability clauses found in the contract, all bank facilities (such as loans), which amount to €417 million, would be assumed by the government if it were to terminate the contract with the consortium. This would be required from just one component, and does not include three other liability clauses which would need to be calculated if the contract would be terminated, such as redundancy payments for Electrogas employees, payments to sub- contractors etc.

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It was said that if such a situation occurred, the government would receive full control of the power station.

The Public Accounts Committee continued its examination of the Auditor General's report entitled: "An investigation of matters relating to the contracts awarded to Electrogas Malta Ltd. by the Enemalta Corporation".

During the committee meeting, David Galea also testified. He was a project manager for the LNG plant site. He was, pre 2013, Chairman of Mt Carmel Hospital.

Galea told the committee that he, at the time, answered to the Sponsoring Committee and Enemalta's board of directors. He confirmed that he is friends with Koinrad Mizzi, and that he had been awarded consultancies between 2013 and 2019. He also said he was awarded consultancies prior to 2013 by the PN government.

He told the committee that he had been asked to provide some advice for the PL electoral manifesto on the energy sector before the 2013 election.


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