1996 fraud exposed

• Wouldn’t Alfred Sant have conducted tests? - Busuttil • Skanska ultimately responsible - Sciberras report

• Reports in 1996 flagged inferior concrete and designs • Government will fight Skanska tooth and nail - Mizzi • What happened to Sant era inquiries on concrete quality? – Busuttil • Low quality concrete flagged back in 1996 – inquiry report • Prime minister demands civil and criminal investigation • St John refutes claims that he shredded documents

The habitual dismissal and lack of action on quality control reports shows that the inferior quality of concrete used in Mater Dei Hospital was “concentrated and directed” showing that the whole process was fraudulent, according to an inquiry report.

The report, headed by Judge Phillip Sciberras found that it was known that there were ‘deficiencies and bad workmanship” back in 1996, yet nothing was ever done about it under subsequent administrations. The report’s conclusions also established that samples were taken by the contractor and subsequently analysed by a government run laboratory, which is irregular.

The 98-page report highlighted that 4 of 5 samples that were tested by the Works Division were authorised by Skanska and other samples by Blokrete Ltd.

The inquiry report found that the concrete cube samples were delivered to the laboratory which, in 1996, was run by the government, meaning that they were not tested independently or on site.

Concrete from the pillars was supplied by Mixer Ltd, Blokrete Ltd, Maghtab Ltd and Devlands Ltd.

The issue was first brought to attention by parliamentary secretary Chris Fearne and Health Minister Konrad Mizzi in a hastily convened press conference at Castille, followed by a marathon debate in parliament which was marred by arguments because the opposition (and the press) were not given a copy as is normal practice. The speaker, Anglu Farrugia, ruled that the opposition should be given a copy before the statement was read out.

The opposition also argued that parts of the 2015 damage assessment report by Arup were not tabled in parliament and demanded that the rest be made public. The government countered by saying that the whole report was not completed and that the results would be made public in due course.

The government’s take

Dr Fearne said that four of five tests on the structure were made by Skanska itself, “which is not normal practice”.

Dr Fearne said the report also read that the deterioration of the structure is not one which happened over time. "This was not some mistake but a concerted effort from which contractors, suppliers and third parties possibly benefitted from," the report, Dr Fearne said, states.

The board also determined that the strength of concrete used was not C30 - as was meant to be - but C18.

The report quoted another report conducted by Bovis Europe in July 1996, that audited the project. Under the section “Quality of Works”, Bovis said that “Quality standards and control do not appear to meet the requirements of such an important project. For example, while general standard of concrete surface finish on vertical surfaces and sofits is good, bad practices in concrete placing have been noted which could lead to durability problems.

In its conclusions, the Judge Sciberras report found that the entities that were best placed to ensure the contractor’s contractual compliance, including Ortesa as designers and supervisors of works, PMO as project manager and subsequently client’s representative, and FMS and government as clients, knew or should have known of the various shortcomings in the execution of works, however failed to act in a diligent manner as reasonably and objectively expected of them, and those whose actions bordered on gross negligence”.

Skanska ultimately responsible - Sciberras report

The report goes on to read that the responsibility and contractual liability for the failures identified within the present day technical reports ultimately lie with the contractor, Skanska, however adds that documentation seen by the board indicates that FMS in the Project Closure Agreement, and actions of the client, may have hindered its right to vaunt any further claims against the contractor, “which could limit FMS and Government from pursuing the necessary redress”.

It also found that “the pervasive weak concrete found in the site is a result of intended fraudulent actions,” adding that it believes the events transpired were not coincidental and indicate an element of “concentration and direction”.

Energy Minister Konrad Mizzi explained that Ortesa Spa, a company who was awarded a supervision contract in 1994, was in a position to make sure that works were carried out properly, however, even when allegations were made, did not take action. He argued that the government at the time, While Louis Galea was Health Minister, was naïve for not knowing what was going on.

Opposition calls for full 2015 report to be published

The Opposition were adamant in calling for the full Arup report to be published, while government argued that parts of the report were not concluded and thus could not yet be published. The Prime Minister gave his word that they would be concluded once they conclude.

In turn, Dr Busuttil said that “transparency for this government is nothing but an electoral slogan”.

Wouldn’t Alfred Sant have conducted tests? - Busuttil

Opposition Leader Busuttil posed a question to government, stating that while Alfred Sant was Prime Minister between 1996 and 1998, he wanted to add on two storeys to the hospital. Dr Busuttil argued that if this was so, “wouldn’t Dr Sant have conducted tests? What was the outcome? What became of the report?”

Both the Opposition and government said that they want the culprits to be found and brought to justice. The Opposition Leader claimed government was more interested in mudslinging and placing the blame on him, yet at the time he was “still in University”. Energy Konrad Mizzi, however, said that government will “fight Skanska tooth and nail”.

PM wants civil and criminal investigation

Prime Minister Joseph Muscat said that the report will be given both to the police as well as the Attorney General to take action both on the criminal and civil level.

The Prime Minister also laid blame on Brian St John, stating that it was he, who in 2011 was head of the FMS, told the DMS that they are unable to recover damages for weak concrete in the reservoir as Skanska has brought up the waiver.

Minister Konrad Mizzi said that repair works would cost over 35 million euros and in turn, Dr Busuttil asked “what is he going to do to ensure the public do not pay this price, but rather those responsible pay?”

Dr Busuttil also questioned the inquiry, making it a point to mention Alex Sciberras, who is Phillip Sciberras’ son and played a part in the inquiry, and his ties with the Labour Party. The PN questioned whether the lawyer who handled the original contract was even brought in for questioning.

The pervasive weak concrete found in the site is a result of intended fraudulent actions