Issue link: https://maltatoday.uberflip.com/i/476647
maltatoday, WEDNESDAY, 11 MARCH 2015 5 CONTINUES FROM PAGE 1 Accord- ing to Mizzi, he directed Enemalta to stick to price stability targets by looking for deals on the market and to include SOCAR in its suppliers' list. "I didn't force [Enemalta chair- man] Charles Mangion's hand," he said. "I knew the people at SOCAR and this was an option I asked En- emalta to explore. "SOCAR were part of the winning ElectroGas bid (to build a power station) and we were also in further discussions with them so we agreed to ask them whether they could complement the existing suppliers. A few weeks later, Mangion told me that a deal with SOCAR would not only keep the price of petrol prices stable but actually reduce it by 2c. I'd repeat what I did wholeheartedly had I been in the same situation." Mizzi refused comparisons with accusations of interference lobbed at Austin Gatt in a previous NAO report in 2013. "That was a com- pletely different situation in which directions were given over the phone, there was a lack of email ex- changes, and the fuel procurement committee was not even involved," Mizzi said. "In this case it's the advisory com- mittee that negotiates and closes transactions according to targets it sets… all I did was to recommend they include SOCAR in their sup- pliers' list." Mizzi also defended the selection of SOCAR, one of the ElecrtoGas partners, over its chequered record on accountability and transparency: "SOCAR is conducting work with several EU governments, including on a pipeline to Italy as part of the EU's strategy to reduce energy de- pendency on Russia." NAO report The crash in crude oil prices at the end of 2014, with Brent crude hur- tling to below $50 a barrel in Febru- ary, saw Enemalta registering a loss of €8.6 million on crude oil hedging and €5.5 million on hedging for un- leaded petrol and diesel products. The Opposition is already call- ing the report on these losses, and the SOCAR order, "a scandal that stinks". But the NAO expressed reserva- tions on the manner under which Enemalta's fuel product require- ments for the last six months of 2014 were provided in hedge agreements entered into with SOCAR Trading SA, specifically for $920 per metric tonne of unleaded fuel, while that for diesel was at a rate of $910/MT. Effectively this delivered a de- crease of 2c on unleaded fuel at the pump, and a stable diesel price, a result that Konrad Mizzi yesterday remarked was done in line with gov- ernment policy for price stability. However the NAO noted how in March 2014, Enemalta's advisory and finance committee (AFC) were given targets on fuel product hedg- ing with the intention of reducing the price of unleaded petrol and diesel. The resulting SOCAR deals were conspicuous by their lack of documentation on the final AFC approval and placement of order with SOCAR Trading SA. It results that on 3 April, then En- emalta chairman Charles Mangion informed the petroleum commit- tee that deals on petrol and diesel hedges for the second half of 2014 had been concluded with SOCAR Trading "as per ministerial direc- tion". On his part, Konrad Mizzi told the NAO that the government's efforts – namely instructing Enemalta to widen their supplier base and open- ing the lines of contact with SO- CAR – "were limited to… efforts at reducing consumer prices". But the NAO insisted that docu- mentation detailing final approval issued by the AFC and the subse- quent placement of orders with SO- CAR was incomplete. "The lack of documentation rendered it impos- sible for the NAO to determine the extent of ministerial direction exer- cised and responsibilities assumed by the AFC. Given the magnitude of the agreement reached with SO- CAR Trading SA, this Office con- siders the lack of documentation as detracting from the process' ac- countability and a shortcoming in terms of governance." Enemalta remains without a for- mally documented hedging policy, something that Konrad Mizzi yes- terday told MaltaToday he would remedy. But the NAO also pointed out the significant improvement registered in terms of the AFC's governance, with documentation and corre- spondence exchanged by members of the AFC indicating that the com- mittee was continuously monitoring oil and foreign exchange markets. News www.maltatoday.com.mt MANAGER Mediatoday is seeking the services of a full time highly motivated manager with multi-tasking and organisational skills. Having experience of identifying the needs of customers and of running a media and publishing business. Possessing a significant record of achievement in human resources management and able to quickly understand the mission, vision and values of an organisation. WORK EXPERIENCE Working in a fast-paced team oriented environment. Managing a client portfolio and having revenue and account management responsibility for key accounts. DUTIES Working closely with the Director. Gaining a strong knowledge and understanding of a clients' brand and products. Organising regular team meetings with staff and directors. Involved in the day to day management, Performance monitoring. KEY SKILLS AND COMPETENCIES Account management skills. Strong leadership skills. Ability to follow up with clients in a timely professional manner. Good knowledge of human resources management. A successful track record in new business development. Ability to work long hours, often under pressure. Ref: MANAGERMT032015 JUNIOR ACCOUNTANT MediaToday is seeking the services of a full time junior accountant who is responsible for all areas relating to financial reporting. This position will be responsible for developing and maintaining accounting principles, practices and procedures to ensure accurate and timely financial statements. This position addresses tight deadlines and a multitude of accounting activities including general ledger preparation, financial reporting, year-end audit preparation and the support of budget and forecast activities. RESPONSIBILITIES & DUTIES Obtain and maintain a thorough understanding of the financial reporting and general ledger structure. Ensure an accurate and timely monthly, quarterly and year end close. Ensure the timely reporting of all monthly financial information. Assist in the daily banking deposits and transactions. Ensure the accurate and timely processing of pay transactions. Ensure Bank activities are performed in a timely and accurate manner. Supports budget and forecasting activities, Credit control, Issuing of invoices, Payments, Inventory, Handle personnel issues, absenteeism, performance issues, etc. REF: ACCOUNTANTMT032015 Closing date: 25/03/2015 Write in confidence to the The Managing Director, MediaToday, Vjal ir-Rihan, San Gwann SGN07 Or email application to: bcfreddi@mediatoday.com.mt VACANCIES Energy minister says he recommended SOCAR for fuel suppliers' list ENERGY Minister Konrad Mizzi's direct involvement in Enemalta's fuel hedging was the reason fuel prices were so high, Opposition leader Simon Busut- til claimed. A "ministerial direction" to in- clude Azerbaijani state oil com- pany SOCAR in Enemalta's list of suppliers, has been f lagged by the Auditor General, who described a direct order on six months' hedg- ing on diesel and unleaded petrol as "detracting from the process's accountability and a shortcom- ing in terms of governance". "Mizzi's direct interference meant that Enemalta lost €14 million," Busuttil said, citing the Auditor General's report. "The people paid for this loss by hav- ing to pay much higher fuel pric- es than they should have." The AG's report said that, dur- ing 2014, Enemalta registered an €8.6 million loss with respect to crude oil hedging and a €5.5 mil- lion loss with respect to unleaded petrol and diesel hedging – a to- tal of €14.1 million. It also pointed out that the crash in crude oil prices at the end of 2014 was central to Enemalta's hedging losses and that "such significant market movements were not and could not have been anticipated when the hedging agreements were entered into". On the other hand, Enemalta registered a gain of €5.5 million in terms of foreign exchange hedge undertaken for fuel oil and gasoil and an additional €2.5 mil- lion gain from exchange hedges entered into with respect to un- leaded petrol and diesel require- ments. Mizzi said earlier yesterday that his "ministerial interference" was limited to directions to Enemalta to keep fuel prices stable and to broaden the fuel supply chain. "Enemalta's advisory commit- tee negotiated and closed trans- actions according to the targets they set," Mizzi said. "All I did was recommend they include SOCAR in their suppliers' list." However, Busuttil dismissed Mizzi's claims. "We have to stop believing whatever Mizzi says as though he's an oracle," he said. "How can you believe him when the Audi- tor General's report says some- thing opposite? Konrad Mizzi has become the oil scandal." He said that Mizzi's interfer- ence raised further suspicions in light of his and Prime Minister Joseph Muscat's recent state visit to Azerbaijan, to which no jour- nalists or public officers were invited. "Muscat's dangerous leadership style involves the direct interfer- ence of ministers into affairs that should be carried out by institu- tions, non-transparency, and a strong smell of corruption," Bu- suttil said. 'High fuel prices due to Mizzi's interference at Enemalta' – Busuttil PHOTOGRAPHY BY RAY ATTARD PHOTOGRAPHY BY RAY ATTARD Energy Minister Konrad Mizzi Opposition leader Simon Busuttil