news about ??Nothing Odd?? About Grimaldi??s Decision To Double Investment

??Nothing Odd?? About Grimaldi??s Decision To Double Investment

2005/12/05

Grimaldi??s decision to double its investment was taken before the talks on the sale of Sea Malta failed, the government said yesterday.

??In a statement from Grimaldi on 11 November, the company told Dr Austin Gatt of the need for ??an investment much greater than the one agreed for Sea Malta: we believe in fact that an injection of e20m to e30m is more suitable if we intend to start a new course with sufficient power and stature.??

The Investment, Industry and IT Ministry said there was nothing odd about Grimaldi??s intentions.

??All Sant wants is to scare off investment and he is ignoring the evidence that is being given to him,?? the Ministry said.

With regard to the surcharge on water and electricity, the Ministry said that Dr Sant had still not commented on a document released by the government, and he had failed to pass on the said document to the social partners.

??Alfred Sant did not pay attention to the KPMG report which shows that when he was Prime Minister, and the price of oil was at its lowest in 10 years, he had issued bills that were higher than those with a 55 per cent surcharge,?? the Ministry said.

Alfred Sant's aim is to ruin investments, Investment Ministry said

Labour Leader is accusing government of lack of investment whilst at the same time insisting that a Labour government will subsidise public companies in order to give them more opportunities to rip-off investments from the private sector, said Investment and IT Minister in a press release.

Austin Gatt said that Alfred Sant also criticised the government of having no vision or direction whilst referring to the Sea Malta issue. He commented on the fact that the government allowed Grimaldi Napoli to invest double the amount planned. The press release said that the government had decided about this issue prior to the start of the negotiations. Furthermore, the government published a letter addressed to Minister Austin Gatt dated 11 November 2005 in which Emanuele Grimaldi thought of "an investment much greater than the one agreed for Sea Malta". He also said that "we believe in fact that an injection of 20 to 30 Million Euros is more suitable if we intend to start a new course with sufficient power and stature." Alfred Sant should recognise that truth should be a priority and should not be questioned as there is nothing "suspicious" in the decision taken by Grimaldi, added the press release. Alfred Sant's yearn to ruin every investment is indeed more suspicious.

The Ministry for Investment, Industry and Information Technology added that Opposition Leader Alfred Sant, chose to ignore the report issued by the KPMG. The report clearly shows that when in Government, Alfred Sant had issued higher water and electricity bills than those issued with the 55 percent surcharge whilst fuel costs at the time were very low, ended the press release.

Cabinet of Ministers confirms Sea Malta liquidation

The Cabinet of Ministers confirmed that the liquidation of the Sea Malta Company should proceed as planned. In a press release, the Investment, Industry and IT Ministry explained that the motion of the majority shareholders, the Malta Government Investments Limited, will be approved during an Extraordinary General Meeting that will be held on December 12.

The Ministry stated that the motion is expected to be approved since the MGI Ltd has the majority of the company? shares. It explained that when the motion will be approved, the Sea Malta will immediately stop operating and will pass on to the process of liquidation. It is believed that this action is irreversible. The Ministry confirmed that the government is planning temporary arrangements with the Grimaldi Group so that the strategic route will operate from Malta to Catania, Salerno and Genova as of December 13. The Ministry emphasised that this plan is just temporary and is aimed at satisfying the Maltese importers and exporters?needs. It added that the government? intention is to issue a tender for a new Public Service Obligation Contract.

Last month, the government announced that it will dissolve the Sea Malta Company after Grimaldi Group's subsidiary Atlantica Spa di Navigazione pulled out of the privatisation agreement due to a failure to reach a deal with the General Workers Union.

See also: Sea Malta privatisation fails.

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