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Family Minister Michael Falzon has admitted that a controversial multi-million euro contract to build and manage four new blocks at St Vincent de Paul Residence, signed on his watch, should have sought cabinet approval.
But he insists this does not mean there was anything wrong with the €274 million deal, saying the National Audit Office should issue a “correction” over some of its findings.
Last week, the NAO issued a report saying the contract at the residence for the elderly, awarded by direct order in 2017, broke procurement law, might not represent value for money and could be deemed invalid.
The damning report also criticised the absence of “any form of political authorisation” and the fact it was “not brought to the attention of cabinet, despite the materiality of the expenditure and the fact that this project was one of national importance”.
Prime Minister Robert Abela has questioned why a heavily criticised mega-investment at a home for the elderly was never raised at cabinet level during his prede
Hardly a week goes by without some new revelation emerging that points to the mismanagement of public funds, government corruption or some other form of abuse o
Updated 5.10pm
A €274 million contract to build and operate residential blocks and a kitchen at a home for the elderly has been slammed by the auditor general, who found the entire deal could be deemed invalid.
Published on Wednesday afternoon, the NAO report highlighted a series of serious shortcomings, missing documentation and oversight failures concerning the mega-contract awarded to the JCL and MHC Consortium by the St Vincent de Paul Residence.
The consortium is made up of James Caterers Ltd and a subsidiary of the DB Group.
The NAO found that the state-run home, family ministry and department of contracts acted in breach of legislative provisions and broke public procurement regulations in the deal, which it said could potentially be deemed invalid.