Mr Falzon submitted his resignation on Friday in the light of a letter he received from the Minister who expressed concern over the way the Board of Directors handled variation orders relating to the North Malta and Gozo sewage treatment plants contract.  

In his letter the Minister had said that in his view it was “unacceptable” that the variations were treated in a “superficial manner by the management”.  

Minister Gatt also said that he believed that the Board should issue strict instruction on how each variation claim is investigated and documented, and subsequently apply exceedingly strict and pre-determined criteria to the acceptance of any claims by WSC.  

The Minister added that if any claim is accepted, the Chairman was to research the relative management responsibly and where applicable ask the manger involved to provide the necessary justification, and if necessary take responsibility.  

Minister Gatt continued by saying that should the board disagree with these suggestions, the Chairman was to inform him so he could take appropriate action, including an investigation by the Auditor General to “determine whether the cost overruns were avoidable – and if yes, to determine who was responsible for allowing them.”  

On his part, the Mr Falzon said that his position as Chairman was “untenable” due to the “contents and tone” on the Minister’s letter, which implied “an astounding lack of trust in the Board of Directors and in the management” that he heads.