Malta: Shipyard insists Fairmount losses were lower than GWU claims

Malta Shipyards insisted yesterday that the losses it had made on the Fairmount ship conversion projects was €37.3 million and not €80 million as claimed again by the GWU in a report yesterday. It said the €42.3m difference between the two amounts were overhead costs which the shipyard would have incurred with or without the contracts.
The shipyard said the penalties it had incurred because of late delivery were 10 percent of the contract value.
In a preliminary reaction to the GWU report, the company said the PricewaterhouseCoopers report into the case had not been delayed for suspicious reasons, as the union had implied, but only because the terms of reference had been extended to include the two ship conversion projects contracted by Fairmount. PwC had originally been asked to report only on the failure of shipyard subcontractor MSC.