Enemalta, Electrogas Off the Hook in Gas Procurement Case
Court Dismisses Case: Enemalta, Electrogas Off the Hook in Gas Procurement Row
In a significant turn of events, the Maltese courts have dismissed a case against Enemalta and Electrogas, ending a long-standing dispute over the controversial gas procurement deal. The case, which had been ongoing for over five years, was dismissed by the Commercial Court on Tuesday, much to the relief of the power utility and its partners.
Background: The Gas Procurement Controversy
In 2015, the Maltese government, led by the Labour Party, awarded a €600 million contract to a consortium comprising Socar, a state-owned Azerbaijani energy company, and the Italian energy giant, Azeo. The deal, which was criticized for its lack of transparency, saw the consortium build a floating LNG (Liquefied Natural Gas) power station off the coast of Delimara, Malta’s main power station site.
The opposition Nationalist Party, along with several civil society groups, argued that the deal was overpriced and lacked transparency. They filed a case in 2016, alleging that the government had failed to follow proper procurement procedures. The case was initially dismissed by the First Hall, Civil Court, but the plaintiffs appealed, leading to Tuesday’s decision.
Court’s Ruling: A Victory for Enemalta and Electrogas
The Commercial Court, presided over by Mr. Justice Antonio Mizzi, ruled that the plaintiffs had failed to prove that the government had acted illegally in awarding the contract. The court also noted that the plaintiffs had not presented any evidence to suggest that the contract was overpriced.
Reacting to the decision, Enemalta’s CEO, Mr. Michael Farrugia, expressed relief, stating that the ruling “puts an end to years of uncertainty and allows us to focus on providing a reliable and affordable energy supply for Malta.” Similarly, a spokesperson for Electrogas welcomed the decision, describing it as “a vindication of our commitment to delivering a sustainable energy future for Malta.”
However, the opposition was quick to criticize the ruling. Dr. Robert Arrigo, the Nationalist Party’s spokesperson on energy, described the decision as “a whitewash” and vowed to continue fighting against what he described as “a bad deal for Malta.”
Despite the dismissal of the case, the gas procurement deal remains a contentious issue in Maltese politics. The opposition has promised to revisit the deal if it wins the next general election, scheduled for 2022.
