Garnishee order against Electrogas is lifted as company deposits guarantee

Electrogas Malta has deposited the sum of €1.5 million as guarantee

The garnishee order against the Electrogas consortium has been lifted as the company deposited €1.5 million as guarantee yesterday morning, The Malta Independent has learned.

It appears that the case between Ocean Installer, the company which was awarded the contract for the procurement of the storm mooring system, and the Electrogas consortium will now continue before a local tribunal.

The Times of Malta yesterday reported how the consortium behind the new gas-fired power station was hit with an asset seizure of €1.5 million. Quoting from court documents, the newspaper said Ocean Installer requested a garnishee order against the consortium as the latter failed to pay up the fees incurred in the mooring.

In order for the garnishee order to be lifted, Electrogas Malta has deposited the sum of €1.5 million as guarantee.

Ocean Installer provided the storm mooring system which is supposed to allow the tanker to stay in port to operate during storms.

The required permits for the tanker and the power station were approved by the Environmental and Resources Authority in a heated session last December. The Prime Minister had promised to have the new LNG power station ready by March of 2015. Later, Minister Konrad Mizzi announced the new deadline, June 2016.

The controversial LNG tanker sailed into Marsaxlokk Harbour in October last year.

The contract which was signed by the government and Electrogas Malta is yet to be published. Prime Minister Joseph Muscat had promised that all major government contracts will be tabled in parliament for public scrutiny by end of 2016. With this latest deadline ignored, the public is still waiting for a new deadline to emerge.

Electrogas Malta was handed a €360 million loan guarantee and the government has committed itself to buy the consortium should the European Commission reject the agreement.

Despite falling under the remit of the Prime Minister, the Minister without portfolio Konrad Mizzi, who was demoted for his involvement in the Panama Papers scandal, was still kept as the person responsible for the energy project.

Dr Mizzi was last seen at a press conference in October when together with Minister for the Environment Jose’ Herrera, had launched a solar farm project.