Issue link: https://maltatoday.uberflip.com/i/519957
maltatoday, SUNDAY, 31 MAY 2015 News 7 ter technical reports showed that extensive parts of the hospital were constructed with inferior grade concrete and would not withstand seismic activity. The project closure agreement was signed in February 2009 by ar- chitect Paul Camilleri. Former health minister John Dal- li, who claimed he did not know of the waiver, on Friday however told an inquiry board led by retired Judge Philip Sciberras, that he was only informed of the project closure agreement six weeks after the signing. "During this session it was established that I was only in- formed about the Project Closure Agreement about six weeks after it was signed," he said in a public statement. In an email published today in MaltaToday, sent to him two months after the signing of the agreement by Paul Camilleri, it was pointed out that the minister had not been properly informed of the agreement, except for "brief" information. "Dear John, I realise that 1 [sic] have not communicated with you directly regarding the closure of negotiations with Skanska, despite the fact that Brian [St John, then acting chief executive of the FMS] advised me that he had briefly in- formed you about it," Camilleri wrote in the email to Dalli. The email proceeded to list the salient points of the contract, but no mention is made of the waiver. Brian St John has also faced Judge Sciberras's inquiry, and was asked a number of questions in the pres- ence of his lawyer, Andrew Borg Cardona. 'Contract protects FMS's rights' On Saturday, former FMS chair- man Paul Camilleri said that at no point in time prior to the 2009 clo- sure agreement was any deficiency in the quality and grade of con- crete used at Mater Dei brought to the attention of the FMS board. Had the board known, "it would have been raised in its claims against Skanska, as FMS did and addressed accordingly with re- gards to any other claim that re- sulted and was brought to its at- tention." Camilleri said that in December 2008, a 'decision group' met to discuss claims raised by Skanska a year earlier of €28 million and claims raised by FMS for works not done according to their agree- ment. He said the group failed to resolve the respective claims, so they were "were referred to with- out prejudice settlement negotia- tions." On 15 January 2009, FMS ap- proved detailed terms of a settle- ment, which were finalised it with their lawyers on 19 February – the project closure agreement – which contained waivers on the claims raised by Skanksa and the FMS. But Camilleri pointed out that the FMS's lawyers had advised the foundaton on its concerns on retaining the 15-year contractor liability and the liability for hid- den and latent defects, that this was protected by the wording in clause 5.1 of the Project Closure Agreement in terms of which: "The Works … are deemed to be completed and accepted in ac- cordance with the Amended Main Agreement saving any rights FMS and SMJV may have under Mal- tese law…." "Article 1725 and 1726 of the Civil Code provide that a compro- mise shall not extend beyond the subject-matter of a contract and shall only settle the controversies which the parties had in view," Camilleri said yesterday. He said the result of the agree- ment was that Skanska ceded the €28 million in claims, save for some €4.7m accepted by FMS as "justified additional works." way out on FMS claims The email dated April 5, 2009 which John Dalli presented to the inquiry, which shows Paul Camilleri wondering whether he had received the project closure agreement. In his email Camilleri makes no reference to the waiver agreement A letter from Brian St John to Paul Camilleri, dated 24 November, 2011, where Brian St John insists that withholding the money would be in breach of the project closure agreement