Issue link: https://maltatoday.uberflip.com/i/1337056
4 maltatoday | SUNDAY • 7 FEBRUARY 2021 NEWS CONTINUED FROM PAGE 1 But RSM's audit concluded in no uncertain terms that Bundy had ignored procurement rules by not issuing a tender admin- istered by the Director of Con- tracts. "The CEO did not inform the Board of Directors of the pro- cess being followed, the discus- sions and decisions being made and the agreement entered into with the selected leasing sup- plier. Accordingly there is no board decision approving the lease of vehicles," the audit con- cluded. Indeed, the report states that it was Bundy himself who admit- ted to the RSM inquiry that the procurement procedures of the company had not been adhered to and attributed this fact to his "ignorance of the existence of such procedures and to the pro- curement manager of PBS not making him aware of the same." According to witness state- ments given to RSM, corporate services manager Edmund Tab- one had indicated to Bundy of the need to issue a tender. "Bundy, unilaterally, opted to overrule this recommendation and to go for quotations. Due to the different versions given during interviews held it is not clear as to why this decision was taken by the CEO. "According to the CEO it was taken because he was not aware of the existence of the company procedures and because Tab- one did not inform him of the requirements emanating from these procedures. The latter does not seem to be the case because there are three officials who, at least on this point, all stated that the tender matter was brought to Bundy's atten- tion," RSM said. "As regards to him not be- ing aware of the existence of the procedures – it is difficult to accept this as a justification – even more so when our re- view of the January 2017 Board meeting minutes there is a note to the effect that the CEO had been 'discussing the Procure- ment Procedures with the Min- istry as different guidelines had been issued'." Bundy informed of procure- ment rules In January 2017, Bundy was requested by the PBS board to review the procurement proce- dures – "consequently it would seem that the CEO was aware of the existence of these proce- dures," the audit concluded. Additionally, all three PBS staff members who formed part of an internal team that manages the leasing process, stated they had brought the tender requirement to the attention of Bundy. "It is the CEO who unilaterally de- cided to ignore this advice and go for a quotation process when it had been pointed out to him that the tender process should be followed," RSM said in its conclusions to its inquiry. Apart from the need to issue a call for tenders, the PBS proce- dures also state that the approv- al of both CEO and the board of directors was required prior to the publication of a tender doc- ument. Such approval was not sought from, or extended by, the board. Bundy's employment at PBS was terminated shortly after the RSM audit. Prior to the audit, in September 2017, the PBS board passed a motion of no confi- dence in Bundy after learning of the car leasing contract, in a bid to put the brakes on the CEO's profligate spending. Bundy gave Burmarrad Com- mercials green light Bundy delegated the task to an internal committee to source quotations from car importers to purchase the fleet, sometime in November 2016. The first quotation was received from Burmarrad Commercials on 22 November 2016. Just a week later, by 1 December 2016 the company had already submitted a second revised quotation. In January 2017 quotations were received from other lease suppliers. But negotiations were conducted only with Burmar- rad Commercials, although the quote originally submitted was not the cheapest. A third and final quote was negotiated with Burmarrad Confidential RSM audit into €400,000 car deal that cost John Bundy his PBS job 'Bundy unilaterally ignored advice to issue tender' Bundy claimed he was not aware of the existence of the company procedures because Tabone did not inform him of the requirements... "The latter does not seem to be the case because there are three officials who all stated that the tender matter was brought to Bundy's attention."