NEWS | Wednesday, 27 August 2008

Shipyards squander public funds as privatisation looms

David Darmanin

Malta Shipyards Ltd (MSL) will not be cancelling its reservation for a promotional stand booked for a Tripoli fair due to be held in October this year, more than a month after the deadline for submissions of expressions of interest in its purchase elapses, this newspaper has learnt.
A final layout plan issued by Waha Expo Co., the organisers of the Technology of Oil and Gas Forum and Exhibition, confirms the reservation of a corner stand measuring 18sqm in the name of MSL, adjacent to a 12sqm stand reserved for Malta Enterprise. But in his reply, a spokesperson for the Ministry of Infrastructure, contradicted the organisers’ records when he said that: “the stand, which measures 4x3 metres, forms part of a single stand covered by Malta Enterprise.”
The Ministry and the organisers also seem to disagree on the actual cost of the stand. While the spokesperson insisted that the stand is worth €3,900, 60 per cent of which refundable through EU funds, the price list issued by the organisers quotes €450 per square metre, working out at a total of €8,100. That is of course, if one reserves an inline stand. But because MSL opted for a corner stand, the cost increments by an additional 10 per cent, totalling up to €8,910. Added to that, is the cost of accommodation and flights. It is not known whether MSL also opted to advertise in the fair’s official catalogue. In that case, the cost would have increased by an additional €700 for a half page advert or €1,200 for a full page.
Whatever the case, the Ministry considers the money spent on the project to be a pittance. Asked whether the Shipyards are considering cancelling the fair, considering the circumstances, the spokesperson said: “This is an MSL decision. However, given the low cost involved and the fact that the plans behind privatisation is to retain a shipyards business post-privatisation, it will not be wise to withdraw.”
Since a 60 per cent EU subsidy for a futile project in Libya seems at best, strange, the director at Malta Enterprise’s Tripoli office, Noel Hollier, was contacted for clarifications.
“Malta Enterprise takes part in this Expo regularly, and we invite Maltese companies to take part in it. To encourage them, we give back part of the cost,” he said.
Asked to elaborate on the amount subsidised, Hollier refrained from providing the details and asked for the question to be referred to an official at a Malta office, who was not available for comment.
Hollier was asked to provide his position on the fact that Malta Enterprise’s assistance to a state-owned company on the brink of bankruptcy that is about to be privatised may be perceived as a waste of money.
“I cannot answer for Malta Shipyards,” he said. “We issue invitations to Maltese companies and have no say on whom to accept. Applications are processed on a first-come-first-served basis. If they (MSL) wanted to participate anyway, that is entirely up to them.”
Hollier also categorically denied the Ministry’s statement on the MSL stand forming part of Malta Enterprise’s. “The location is purely coincidental,” he affirmed.

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