Profitti għas-settur privat, riskji u kontijiet għall Gvern!

Nhar it-Tnejn li għadda l-Parlament iddiskuta s-sentenza mogħtija mill-Imħallef Francesco Depasquale fuq il-konċessjoni dwar tlett isptarijiet tal-Gvern lill-Vitals Global Healthcare liema konċessjoni eventwalment għaddiet għand Steward Health Care. Id-deċiżjoni li ngħatat hi kontra l-Prim Ministru bħala kap tal-Eżekuttiv, kif ukoll kontra l-Avukat Ġenerali, kumpaniji diversi mill-grupp kummerċjali ta’ Steward Health Care u xi korpi pubbliċi u r-rappresentanti tagħhom.

Din hi kawża li ppreżenta Adrian Delia meta kien għadu Kap tal-Opposizzjoni. Il-parti kbira tad-diskussjoni parlamentari dwar din is-sentenza iffukat fuq nuqqas ta’ governanza tajba, dwar tmexija ħażina u dwar frodi flimkien mal- korruzzjoni, assoċjati ma’ din il-konċessjoni sa mit-tnissil tagħha.

Dan kollu joħroġ ċar mis-sentenza tal-Qorti tal-ġimgħa l-oħra. Imma għal min kien attent, dan kien diġa jidher ċar fiż-żewġ rapporti dwar din il-konċessjoni tal-isptarijiet, rapporti li ħareġ l-Awditur Ġenerali f’Lulju 2020 u f’Diċembru 2021. Is-sentenza tal-Qorti qed issaħħaħ u tirrinforza l-konklużjonijiet li wasal għalihom l-Awditur Ġenerali.

Niftakru li f’Lulju 2020 l-Awditur Ġenerali kien ippubblika l-ewwel rapport tiegħu, rapport li hu mifrux fuq iktar minn 200 paġna u li kien jiffoka fuq il-proċess tal-offerti għall-konċessjoni dwar l-isptarijiet. Dan kien supplimentat b’addendum ta’ 20 paġna oħra. Iktar tard f’Diċembru 2021 l-Awditur Ġenerali kien ippubblika it-tieni rapport tiegħu b’467 paġna, li kien jiffoka fuq il-qafas kuntrattwali tal-konċessjoni u kif dan ġie mħaddem.

L-Awditur Ġenerali kien ikkonkluda fir-rapporti tiegħu li l-preparazzjoni li wettaq il-Gvern in konnessjoni mal-konċessjoni kienet waħda superfiċjali, u li meta ħareġ is-sejħa għall-offerti kien fil-fatt diġa ftiehem u fuq kollox lill-Kabinett bosta drabi kien iħallieh fil-għama. Anke l-Ministru tal-Finanzi kien imwarrab, qiesu kien qiegħed hemm għalxejn!

Punt interessati li isemmi l-Awditur Ġenerali hu li Vitals Global Healthcare ippreżentaw garanzija bankarja mill-Bank of India li kienet datata 13 ta’ Marzu 2015, ħmistax-il ġurnata qabel ma fil-fatt ħarġet is-sejħa għall-offerti. Dan sar għax il-ftehim kien diġa sar u s-sejħa li ħarġet għall-offerti kienet waħda finta! A bażi ta’ dan, l-Awditur Ġenerali kien tal-fehma li Vitals Global Healthcare kellhom ikunu skwalifikati milli jippartiċipaw fis-sejħa għall-offert għall-konċessjoni dwar l-isptarijiet.

Dan hu kollu importanti u separatament wassal għal konklużjonijiet li issa wasal għalihom ukoll l-Imħallef Depasquale fis-sentenza li qed nitkellmu dwarha. Ifisser li Gvern serju, kieku ried, seta jaġixxi. Kellu biżżejjed informazzjoni biex jibgħat lil Steward Health Care isaqqu. Imma b’mod ċar dan ma setax jagħmlu għax il-Gvern kien parti integrali mill-ħadma li saret.

Imma hemm affarijiet oħra, daqstant importanti, ta’ natura fundamentali u li huma presentment skartati mid-diskussjoni pubblika. Kemm jagħmel sens li qasam sensittiv bħas-saħħa ikollu parti sostanzjali minnu taħt kontroll kważi assolut tas-settur privat. Jagħmel sens il-Public-Private Partnership fil-qasam tas-saħħa?

Din hi mistoqsija li hi kompletament skartata fid-dibattitu pubbliku li sar u li għadu għaddej. Hi mistoqsija fundamentali li mit-tweġiba għaliha tista’ toħroġ il-fasla ta’ kif is-settur privat jista’ jikkontribwixxi u jipparteċipa mingħajr ma jikkontrolla: kif kulħadd jitħallas ta’ xogħolu imma li ħadd ma jitħalla jberbaq il-ġid tal-pajjiż.

L-esperjenza li għandna f’dan il-pajjiz dwar l-involviment tas-settur privat f’dawn it-tip ta’ proġetti hi waħda ta’ problemi kbar: problema ta’ deċiżjonijiet ħziena u ta’ abbuż ta’ poter, kif ukoll suspetti kbar ta’ frodi u korruzzjoni. Dan b’referenza kemm għal din il-konċessjoni tal-isptarijiet, il-progett tal-enerġija f’Delimara u anke fil-progett ta’ San Vinċenz f’Ħal-Luqa. F’kull kaz hemm rapporti voluminużi tal-Awditur Ġenerali li jispjegaw dettaljatatment it-taħwid li ġie iġġenerat mill-Gvern immexxi mill-Partit Laburista wara l-2013.

Huwa mudell ekonomiku fallut li jarmi l-assi pubbliċi. Mudell li intuża ukoll f’ċirkustanzi oħra bħall-bejgħ tal-art f’Pembroke bir-ribass biex ikun iffavoreġġat il-proġett spekulattiv tal-Grupp dB.  Il-profitti li jirriżultaw mill-ispekulazzjoni, sfortunatament għandhom prijorità fuq il-ġid komuni għal dan il-Gvern.

Hu ċar li jekk irridu l-involviment tas-settur privat fi proġetti pubbliċi, dan l-involviment għandu jkun regolat sewwa u din ir-regolamentazzjoni għandha tkun infurzat biex tkun assigurata governanza tajba mill-bidu nett, mill-ewwel ideat sat-twettieq ta’ proġetti ta’ din ix-xorta.  S’issa kollox qiegħed jitħalla jimxi għal riħu bil-konsegwenzi li qed naraw b’għajnejna u li qed insiru nafu bihom ftit ftit. Nuqqas ta’ regoli ċari li jkunu infurzati jwassal inevitabilment għal taħwid, għal frodi u għal korruzzjoni. Riżultat ta’ hekk ibati l-pajjiz kollu.

ippubblikat fuq Illum: 5 ta’ Marzu 2023

Private profits public risks

On Monday Parliament discussed the decision delivered in Court by Judge Francesco Depasquale relative to the Government hospital concession awarded to Vitals Global Healthcare, eventually substituted by Steward Health Care. The decision delivered is against the Prime Minister as head of the Executive, as well as the Attorney General, various companies in the Steward Health Care Group and a number of quangos and their representatives.

This Court Case was presented by Adrian Delia when he was Leader of the Opposition. The major part of the Parliamentary discussion has focused on bad governance, fraud and corruption which were all associated with the hospital concession process since its inception.

All this emanates from the Court decision delivered last week. However, those who observe the political scene attentively would be undoubtedly aware that all this was already evident in two reports published by the Auditor General on this hospital concession: the first one published in July 2020 and the second one in December 2021. The Court’s decision, in fact, reinforces the Auditor General’s conclusions.

We do clearly remember that in July 2020 the Auditor General had published a first report running into over 200 pages focusing on the hospital concession tendering process. This was followed by an addendum and later, in December 2021 the Auditor General published a second report, 467 pages long, which reviewed the contractual framework of the hospital concession.

In his reports the Auditor General concluded that the preparatory work carried out by the public sector in relation to the hospital concession was very superficial. The Auditor General’s reports also identified that even before the request for proposals was published Government had already concluded on awarding Vitals Global Healthcare the hospitals concession! Cabinet and even the Finance Minister were generally kept in the dark. 

The Auditor General, in his investigations, found a bank guarantee presented by Vitals Global Healthcare. It was issued by the Bank of India on the 13 March 2015, a fortnight before the request for proposals was even published. This clearly established that the agreement was already sealed even before the public request for proposals had been published. The Auditor General had clearly identified this as a definite proof of collusion. On this basis, the Auditor General had in fact expressed a strongly worded opinion that Vitals Global Healthcare should have been disqualified from participating in the request for proposals relative to the hospitals’ concession.

All this is of paramount importance. Way back in 2020/21 it had led to the Auditor General conclusions which have now been confirmed by Mr Justice Depasquale in the decision delivered last week. This means that government should and could have acted then: it had sufficient information to send Steward Health Care packing. However very clearly it could not act as it was part and parcel of the deceit at hand.

There are however further matters, just as important as the above, which the current debate unfortunately avoids. We should ask: does it make sense for a sector as sensitive as health to be controlled in this manner by the private sector? Does a public-private partnership in the health sector make sense?

These questions are being ignored in the public debate currently at hand. These questions are of a fundamental nature as the replies thereto could identify the manner as to how the private sector can be involved without having a controlling interest and how all those involved can be fairly remunerated without squandering public funds.

The local accumulated experience resulting from this kind of projects is very problematic: we are continuously faced with incorrect decisions, abusive decision-taking as well as substantial suspicions of fraud and corruption. This is being stated with reference not just to this hospital concession but also to the energy deal at the Delimara Power Station and the project at the Luqa elderly residence: St Vincent de Paul. In each case the Auditor General has produced voluminous reports detailing the mayhem generated by the post 2013 Labour government.

It is a failed economic model which discounts public goods. It has also been applied in other sectors: a case in point being the Pembroke land “sold” at throwaway prices in favour of the speculative project of the dB Group. Speculative profit is unfortunately being continuously prioritised over the common good by the present government.

It is crystal clear that if we want the private sector involved in public projects its involvement must be regulated, and the said regulatory regime must be adequately enforced in order to ensure good governance throughout, from inception right through to implementation. So far it is a free for all: the consequences are for all to see.  A lack of clear rules and their enforcement inevitably leads to confusion, fraud and corruption. The whole country, as a result, has to pay the consequences.

published in The Malta Independent on Sunday : 5 March 2023

Greening: what really matters

A public consultation is currently under way relative to green roofs and green walls. A 42-page document entitled Green Paper on Greening Buildings in Malta: Initiatives for Green Walls and Roofs for Residential, Commercial, and Industrial Buildings was published, explaining the objectives to be attained. The encouragement of green roofs and green walls aims to contribute towards reaching the zero-carbon objective in 2050. 

I have no issue with greening walls and roofs where this is appropriate. However, notwithstanding all the good intentions, there is a risk that the predominant green produced is more plastic! Maybe they could, instead, start by respecting our existing green walls made up of the substantial number of trees being continuously uprooted by the Ministry for Transport!

My issue is with the artificiality of “environment policy” in Malta which concentrates and over-inflates on minor issues and then turns a blind eye to the issues that really matter.

Among the most pressing issues is that of the urgent need of greening transport policy: that is the need to ensure that mobility issues in the Maltese islands are addressed in a sustainable manner.

Two specific policy issues currently in hand need complete reversal.

The current massive investment of resources in roadbuilding is a blatant misuse of public funds as they place car-usage as the primary objective to be facilitated. It is pertinent to point, once more, towards the National Transport Master Plan 2025 which in crystal-clear language explains what’s wrong with transport policy in the Maltese islands.

The following extract is self-explanatory: “Improve integrated and long-term strategic planning and design: This objective has been defined since historically, it can be seen from experience that the approach to transport planning and policy in Malta has generally been more short-term (4-5 years) in nature. The lack of importance given to long-term planning means that a long-term integrated plan based on solid analysis with clear objectives and targets is lacking. This has resulted in the lack of strategic direction and the inherent inability to address difficult issues such as private vehicle restraint.

There is a strong reluctance for Maltese society to change but this is in contrast with the need for communal actions to address the traffic problems existing now and in the future. This results in the Maltese traveller expecting that everyone else will change their travel habits so that they can continue to drive their car.” (page 88 of National Transport Master Plan 2025)

Greening transport policy in Malta essentially means addressing and reducing car ownership in order to substantially reduce private vehicles from our roads. In a small country such as ours, sustainable mobility cannot be achieved through private vehicles but through alternative transport. Everywhere is within reach. In fact, the Transport Master Plan emphasises that 50 per cent of the trips we make with private cars are for distances taking less than 15 minutes, meaning that such trips are local or regional in nature.

We need more public transport initiatives and less private cars on our roads instead of further extensions to the public road network through massive road infrastructural projects.

The proposed Gozo tunnel is likewise another unnecessary project. It is a tunnel which facilitates the use of private cars. The feasibility of the said project is tied to a substantial increase in car movements between the islands as it is the payment of fees levied on cars making the trip that pays for the tunnel project. The documentation projects an increase from 3000 to 9000 daily movements of vehicles, a threefold increase. Green walls and green roofs do not cancel out such irresponsible action.

Greening roofs and walls do not involve rocket science. There is no issue with the implementation of a policy encouraging green roofs and green walls although it would be quite useful if plastic use in such walls and roofs is reduced! But transport policy is contentious as it involves unpopular but essential decisions. Restraining the use of private vehicles is, of paramount importance. Coupled with more public transport improvements it will reduce cars on the roads, improve the quality of our air and reduce household expenses. Avoiding this decision will only make matters worse.

published in The Malta Independent on Sunday : 14 February 2021

Living on Ecological Credit

published

Saturday July23, 2011

An informal meeting of EU ministers of the environment held in Poland earlier this month reminded us that we are living on ecological credit. Our balance sheet with nature is in the red. It is healthy that EU politicians have recognised this fact.

Environmentalists have been campaigning for ages that the world is living beyond its means. International NGO WWF, for example, publishes information relative to ecological footprint analysis. From the information available, Malta’s ecological footprint is 3.9 hectares per person. This can be compared to an EU average of 4.9 hectares per person (ranging from a minimum of 3.6 for Poland and Slovakia to a maximum of 7.0 for Sweden and Finland) and a world average of 2.2 hectares per person.

This adds up to a total impact for Malta of about 50 times the area of the Maltese islands. A clear indication of the extent of Malta’s reliance on ecological credit.

Malta’s environmental impacts are accentuated due to the islands’ high population density.

Malta’s small size is in some respects an advantage but this advantage has been generally ignored throughout the years. The reform of public transport, currently in hand, could someday put the issue of size to good use by developing an efficient system of communication. This reform, however, has to be properly managed. Preliminary indications point to a completely different direction. I do not exclude the possibility of the achievement of positive results even if, so far, I am disappointed.

The results the Greens hope to be achieved from the public transport reform would be the increased use of public transport and, consequently, a reduction in the number of cars on the road. This will come about if bus routes are more commuter-friendly. A reduction of cars on the road will lead to less emissions and a reduction of transport-generated noise. It would also cut a household’s expenditure through the reduction of fuel costs.

Water management in Malta also contributes considerably to the island’s ecological deficit.

The commissioning of the Ta’ Barkat sewage purification plant means that Malta is now in line with the provisions of the EU Urban Wastewater Directive. But the actual design of the sewage purification infrastructure means that by discharging the purified water into the sea an opportunity of reducing the pressure on ground water and the production of reverse osmosis-produced water has been lost. The purified water could easily be used as second-class water or it could be polished for other uses. When the Mellieħa sewage purification plant was inaugurated it was announced that studies into the possible uses of the purified water were to be carried out. These studies should have been undertaken before the sewage purification infrastructure was designed as they could have led to a differently designed infrastructure. The system as designed means that any eventual use of the purified water will require its transport from the purification plants to the point of use. A properly designed system could have reduced these expenses substantially by producing the purified water along the route of the public sewers and close to the point of use.

Public (and EU) funds have been wrongly used. Water planners have not carried out their duty towards the community they serve through lack of foresight and by not having an inkling of sustainability issues.

It also means that those who advised the head of state to inform the current Parliament’s inaugural session in May 2008 that “the government’s plans and actions are to be underpinned by the notion of sustainable development” were not aware what that statement signifies. Repeatedly, the government, led by Lawrence Gonzi, falls short of addressing adequately environmental impacts, as a result pushing these islands further down the road of dependence on ecological credit.

The government could have opted for a fresh start in May 2008 by implementing the National Sustainable Development Strategy, approved by Cabinet some months prior to the 2008 election. Instead, I am reliably informed that the National Commission for Sustainable Development has not met a single time during the past 42 months. As a consequence, the strategy has been practically shelved and discarded.

I cannot and will not say that there have not been any environmental initiatives. While various initiatives have been undertaken, some only address impacts partially. Others have been embarked upon half-heartedly. It is also clear to all that government environmental action does not form part of a holistic vision. It rather resembles the linking up of loose pieces of unrelated jigsaw puzzle bits.

This contrasts sharply with the public’s awareness and expectations. The public is one step ahead awaiting its representatives to act in a responsible manner in accordance with their much-publicised statements.

Excessive ecological credit will inevitably lead to ecological bankruptcy. No EU or IMF will bail us out. It’s better to take our environmental responsibilities seriously before it is too late.