Issue link: https://maltatoday.uberflip.com/i/1337056
5 maltatoday | SUNDAY • 7 FEBRUARY 2021 NEWS Commercials, but it is not clear when this negotiated quote was received although it bears the same date as the second quote, 1 December 2016. On 13 February 2017, Bundy informed Burmarrad Commer- cials to proceed with the order for the leased vehicles; yet prior to this date, the only reference in board minutes to the vehicle fleet project was made in a Jan- uary 2017 board meeting. The note stated that 'CEO referred to car fleet of PBS and noted that cars are now old. He had sought advice on whether to buy new cars or go for leasing and found it was cheaper to go for leasing'. "It is not clear as to what ad- vice the CEO is referring to here," RSM said in its audit. "Our inquiries indicated there is no written advice to this effect. At any rate this note reference in the minutes by no means in- dicates that the Board was being kept informed as to what was being done. In fact up until the 13 February, which is the date when PBS was committed to the deal, the Board was not aware of the process followed, the deci- sions made and the agreements entered into." In another revelation in the RSM audit, it turns out that PBS managers were under the impression that Bundy had ob- tained ministerial approval. But a ministry official told RSM that "she was not con- sulted on the PBS vehicle lease matter and there are no emails from her to PBS on this matter. This was also confirmed by the CEO." But three PBS managers all maintained with RSM that Bun- dy "had informed them that he had got or was getting the 'go ahead' from the ministry on the quotation process. As al- ready stated however whether this was the case or not is not relevant as such 'go ahead' can- not contradict company pro- cedures, or indeed substitute board decisions." Board never informed of lease deal On 12 June 2017 PBS signed 14 lease agreements with Bur- marrad Commercials for a peri- od of 8 years and a total value of approximately €424,000, apart from €66,000 in VAT. As part of this deal Burmarrad Com- mercial undertook to purchase the old vehicle fleet for €26,200. In April 2017, the PBS board approved two resolutions to sell and scrap the nine cars: six for €26,200 and another three to be scrapped. But RSM's investigation states that the resolutions do not in- dicate that these transactions were part of a wider agreement with Burmarrad Commercials to lease 14 vehicles for eight years. "By no means can one conclude that through this ac- tion the board was being made aware of what had already been agreed, way back in February 2017, with regard to the leasing of the vehicle fleet." The minutes of 30 August 2017 indicate that the matter of the vehicle leasing agreement was raised by a board member who was questioning "what was happening as to his knowledge this matter had never been dis- cussed at board level. The CEO was not present for this meet- ing." No study to determine need for new fleet There were further findings from the RSM audit into Bun- dy's car leasing deal with Bur- marrad Commercials. Way before the CEO decided to bring on Burmarrad Com- mercials to provide staff and himself with a new fleet of leased cars, no study was car- ried out to determine what type and number of vehicles were re- quired and how these could be financed taking into considera- tion the liquidity position of the company. "A project that was likely to cost the company a materi- al amount should never have moved ahead without the com- pletion of such an operational and financial analysis. We were informed that the vehicle re- placement project, way back in August and September 2016" – right when Bundy was sin- gle-handedly made CEO by the Muscat administration – "start- ed off with getting quotations to purchase vehicles and then somehow veered off into leasing following observations made by car importers." The old PBS fleet of nine vehi- cles was then replaced with 13 leased vehicles but the opera- tions manager, who is also dep- uty CEO, "maintains that some of the vans leased are not fit for purpose as they are too small and according to him more than one van is sometimes sent out with an OB unit to be able to carry crew and equipment." Additionally, none of the de- cisions taken by internal man- agement were even document- ed. "We were also verbally informed by certain of the man- agers that more often than not they are presented with a fait accompli which they are asked to rubber stamp, rather than contribute to," the RSM audit found. "These same managers also implied that they are bullied into making certain decisions. The veracity or otherwise of this is outside the scope of this inquiry but we strongly recom- mend that such matters are in- vestigated." The Environmental Health Directorate is receiving applications for the sale of new graves at Addolorata Cemetery. Applications can be obtained from: Burials Regulatory Unit Santa Marija Addolorata Cemetery Paola, PLA 9010 Burials Regulatory Unit 21693508 www.bit.ly/addolorata-app Mon-Fri (07:00 - 15:00) Sat-Sun (08:00 - 12:00)