The Malta Independent 20 April 2024, Saturday
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TMID Editorial: Government deals - Yet another questionable contract

Wednesday, 5 May 2021, 08:06 Last update: about 4 years ago

As has become the norm, yet another government contract has resulted in several questions raised as to whether things were done right or not.

Recently, The NAO slammed a €274 million contract, awarded in 2017 to a consortium formed between James Caterers Ltd and Malta Healthcare Company, a subsidiary of db Group. The original call was for the provision of catering and the construction of a new kitchen but the bidders were asked to provide additional investment at no cost. The James Caterers Ltd and Malta Healthcare Company (a subsidiary of db Group) consortium proposed to invest some €14 million in the construction of four new blocks with a bed capacity of over 500 beds.

The NAO however, expressed its doubt that the tender awarded did not secure value for money, while slamming the report on many other grounds.

The Ministry for Senior Citizens and Active Ageing said that the Ministry is analysing the NAO’s report to iron out any kinks. It was, however, sure that the four blocks will ultimately provide a myriad of benefits “in a society where waiting lists for elderly waiting to move into residences has reached a new record”.

It is good that the ministry is analysing the report, but this newsroom must point out that this is yet another government contract, in a series of many, that has been put under the microscope.

The government highlighted that an increase in beds was “well needed” in Saint Vincent de Paul to avoid large amounts of people gathering in Mater Dei, either waiting to get a bed themselves or else individuals who were waiting to enter residencies in elderly homes. There is absolutely no doubting this point. But there are serious questions as to whether the government got a good deal, or overpaid, and also questions raised as to the procedure used. For instance, the NAO found that the capping set on the price of catering in the contract issued by Saint Vincent De Paul residence was inflated to compensate for ‘free’ investment at the elderly care home.

Prime Minister Robert Abela himself raised a question, as to why the process for the contract was never raised at Cabinet level during his predecessor’s administration, highlighting that it should have had Cabinet approval. He did go on to defend the merits of the investment which he said had provided a better service to patients.

Malta has had enough of questionable contracts being signed. From the hospitals deal, to the Electrogas contract, to the Cafe Premier deal and now this. It’s just been one thing after another, nonstop questions surrounding the deals made by the government that was led by Joseph Muscat.

How can the public trust that deals are being signed in the best interest of the public, when there has been so much suspicion created about the contracts signed in the past?

The current government needs to take a serious look at the agreements signed over the past 6 or 7 years and truly determine if the public interest was always, in each instance, first and foremost in the deals signed and, where it was not, try to remedy the situation.

The funds being spent are taxpayer funds. If the government signed a deal in which it overpaid, that is your hard-earned tax money being spent. If in some of the deals signed the interests of the public were not first and foremost, then that creates many concerns about whose interests such deals were looking out for.

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