EMEA News
Report Faults Bunker Procurement in Malta
A new report by Malta's National Audit Office (NAT) slams energy company Enemalta Corp. (Enemalta) for its fuel procurement activities, including dealings with Maltese oil bunkering company Island Bunker Oils Ltd. (Island Bunker Oils), between 2008 and 2011, news site Malta Today reports.
The report accuses the company, which is the main power provider for the southern European island nation, of "poor contract management practices" regarding the transfer of diesel.
In particular, it notes a series of contract extensions provided to Island Bunker Oils providing a "considerable increase" in the rates paid, which it says "at best, may be considered as representing an affront to the principles of good governance."
"The revision in rate, irrespective of excuses regarding the cleansing of barges put forward by Enemalta on behalf of Island Bunker Oils Ltd is, in NAO's view, unacceptable justification for bypassing the most fundamental principles of good practice with respect to procurement."
Overall, the report faults Enemalta, which made fuel purchases of €578 million ($759 million) in 2012, for operating with no clear policies or transparency before it formulated a Fuel Procurement Policy in January 2011.
"NAO fails to comprehend how decisions worth hundreds of millions of Euro could have been subject to this abysmal level of record-keeping and documentation, in blatant violation of the principles of management, good governance, accountability and transparency," the report said.
Enemalta imports and distributes petroleum products and generates and distributes electricity around the Maltese islands, according to its website.
