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Il-Ministru Michael Frendo jikteb lill-Awditur dwar ir-Rapport ta' Posta Limited
19/09/1996
| Il-Ministru ghat-Trasport, Komunikazzjoni u Teknologija, Michael | Frendo kiteb lill-Awditur fejn talbu kjarifiki tieghu ghal punti specifici li jirrizultaw mir-rapport li "Posta Ltd." baghtet lill-Ministru Frendo. |
| Kopja ta' l-ittra tal-Ministru Frendo lill-Awditur hi annessa ma | din l-istqarrija. |
MINISTRY FOR TRANSPORT, COMMUNICATIONS AND TECHNOLOGY
18th September, 1996
Mr. J. Galea
A/Director of Audit
Audit Office
Floriana.
Dear Sir,
| I am referring to you a report received on the 31st August 1996 | from Posta Limited regarding the purchase of land and premises at Qormi. |
| This report raises for me the need to clarify the following | matters: |
1. Value for money.
In your report to the Public Accounts Committee the three architects appointed by you to assess the value of this transaction, agreed that "the value of the project, from Posta Limited point of view, could concievably be of the order of Lm1.9m", the amount actually agreed to in Posta Limited's contract. In another part of your report you mention that "consultants pointed out that the case involved a number of complex factors and no single clear cut figure can be given. However taking the value approach the project was calculated to fetch approximately Lm1.5m". The three architects in the same report, however, refer to the sum of Lm1.5m not as the "value approach" but as a forced sale value approach". Which is the correct figure?
2. Method of Procurement
| In your report you conclude that "it is recommended that | relevant procedures expected to be in conformity with government practice, be more clearly laid out and communicated to each and every board member in the public sector". I personally also agree with the Minister of Finance, who approved Posta Limited's land and premises purchase and later also the Lm2m government guarantee for such purchase, that it would have been more desirable for Posta Limited to have issued a call for tenders, but, like him, can appreciate Posta Ltd's predicament in trying to find suitable new premises. Has Posta Limited breached any government regulations with regard to government owned limited liability companies? |
| In view of this, I seek clarification with regard to the following | matters: |
1. Has there been value for money in this transaction?
2. Should the current procurement of land and premises at Qormi by Posta Ltd., be rescinded and a call for tenders issued?
Signed:
Michael Frendo
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