Edward Scicluna

Returning Enemalta to financial health

Part 1 – Videoblog 18

 

 

Finance Minister Prof. Edward Scicluna discusses the recently-signed Memorandum of Understanding between Malta and China regarding the state-owned entity Enemalta, and addresses various questions and criticisms which surfaced over the last few days.

Prof. Scicluna explains that the new Government’s plan was to bring about a change in Malta’s energy direction, from one that is founded on heavy fuel oil, to one that uses gas, a cleaner and cheaper energy source.

 

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He notes however that, keeping in mind the precarious financial situation Enemalta was allowed to fall into by successive previous administrations, Enemalta Corporation was on the edge of collapse, and required immediate attention.

Prof. Scicluna points out that had the Opposition not cooperated with the previous Government at the end of 2012 to establish a Special Purpose Vehicle for the rescheduling of some €300 million debt owed to the German Development Bank, Enemalta would have been declared bankrupt.

Finance Minister Prof. Scicluna will be addressing further critical issues surrounding this deal in next week’s blog.

 

Returning Enemalta to financial health

Part 2 – Videoblog 19

 

 

In his weekly blog, Finance Minister Prof. Edward Scicluna discusses the criticisms levelled against the recently-signed Memorandum of Understanding between Malta and China regarding the state-owned entity Enemalta.

Prof. Scicluna argues that the claims that the agreement is being done illicitly or behind the public’s back are unfounded, pointing out that the Government has been open about its intentions, and that when the time comes for the deal to be finalised, the Government would be explaining what it has in mind in Parliament.

Prof. Scicluna also questions the Opposition’s claims that this deal could have been done with a European country, pointing out that the previous administration did not go out of its way to seek a European partner to support the ailing corporation, and neither did it undertake a bond issue to sustain the corporation’s ailing finances.

The Finance Minister also dismisses the notion that the agreement is motivated by some sort of hidden or malicious agenda, pointing out that through this agreement, both Malta and China stand to benefit.

He underlines that through direct association with a globally-established triple AAA certified Chinese energy corporation, Enemalta can only benefit, and will re-acquire the respect and credibility of credit rating agencies that it lost over the years.

He concludes by expressing the hope that once the waters settle, even the Opposition will come to admit that the agreement represents a responsible step forward towards returning Enemalta to financial health.

 

– Saturday, 28th September, 2013

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