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5.12.19 6 NEWS MASSIMO COSTA THE NAO has confirmed shortcom- ings by the Home Affairs Ministry in the awarding of a contract for works at Corradino prison. e Auditor General found that the ministry's choice of a contractor for the works was questionable, and that it had not safeguarded the government's inter- ests nor ensured value for money in the awarding of the contract. e case dates back to December 2015 and December 2016, when the Home Affairs Ministry had awarded two con- tracts to Infinite Fusion Technologies Ltd for the upgrading of the IT net- work at Corradino Correctional Facility (CCF) and related sites. e contracts, valued at €1,038,400 were awarded through direct orders, which prompted allegations of wrong- doing in the press and led to Home Af- fairs Minister Carmelo Abela request- ing that parliament's Public Accounts Committee refer the matter to the Au- ditor General. In its report, published on Wednesday, the NAO found that, in disbursing pub- lic funds through the awarding of the contract to Infinite Fusion, the Home Affairs Ministry did not appropriately analyse the needs of the network pro- ject, nor did it evaluate the alternatives and ensure that there was a reasonable basis for selecting that particular con- tractor. e NAO highlighted that the minis- try and CCF has not provided any doc- umented evidence justifying the need for the network upgrade. Despite the fact that the ministry had maintained there were frequent outages at the pris- on, no correspondence or reports were presented to the NAO on such frequent disruptions. Moreover, the Auditor General found that, instead of carrying out an inde- pendent assessment of the cost of the works, such cost was calculated by In- finite Fusion. Ministry should have obtained multiple quotes Part of the review undertaken by the NAO was on whether procurement was undertaken in compliance with the Public Procurement Regulations. e NAO acknowledged that securi- ty-related concerns that motivated the ministry in seeking exemption from Public Procurement Regulations. It noted that the Department of Con- tracts had recommended that the works be contracted through a negotiated pro- cedure. However, the NAO said that the min- istry had still failed to source other quo- tations from suppliers of choice, which would have been in line with the negoti- ations procedure adopted. Lack of planning caused delays Despite the first contract, worth €461,103 having been paid for after it was signed, the works weren't conclud- ed within the stipulated six months. While some of the ministry's justifica- tions for the delay could not have been foreseen, others could have been antici- pated had the works been appropriately planned. Another element of concern related to the certification of completed works, which although stipulated as a require- ment of the contract, was not undertak- en by the MHAS in a manner deemed appropriate by the NAO. Aside from approval for payment noted on invoices, no documentation substantiating the receipt of supplies was provided to the NAO. is concern assumes more significance when one considers that, in one instance, a signifi- cant payment for labour was effected in advance. "In this Office's opinion, these short- comings attested to the poor contract management practices employed by the Home Affairs Ministry in its oversight of these works.," the NAO said. Second contract not yet completed As at October 2019, when the NAO's report was being drawn up, the works commissioned through the second con- tract dating back to December 2016 had not been completed. Of the €577,296 contract, €472,526 have been affected, but around €100,000 in work remain pending, with an ex- pected completion date of December 2019. "Bearing in mind that the contract stipulated completion by October 2017, the envisaged revised target date was deemed indicative of poor planning and weak contract management on the part of the Home Affairs Ministry and the CCF," the NAO underlined. e NAO concluded that the basis for the selection of Infinite Fusion was questionable in terms of the circum- stances within which the contractor was selected, as well as the fact that no other suppliers of the ministry's choice were approached to submit a quotation for the works. Finally, the NAO said that the gov- ernment's interests not to have been adequately safeguarded and value for money far from ascertained, largely due to the poor management manifested throughout the process of procurement and in the implementation of works. Ministry failed to ensure value for money in prison IT network contract – NAO

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