Fallagate simply 'all about personal gain'

FALLAGATE was about Stuart Falla's financial position and not the tender process, it has emerged. Arch critic Housing minister Dave Jones said that his concern was how a government minister could receive dividends from a company that had millions of pounds-worth of States work without it being questioned.

'There is no other government that I am aware of in the Western world that allows government ministers to have direct financial interest in government projects,' he said on a website forum.

Deputy Jones last night refused to confirm or deny that the online comments were his but States members who attended an informal meeting on Saturday said he had made similar, possibly stronger, comments to them.

The Welsh Audit Office today begins an inquiry into why R. G. Falla Ltd, in which Deputy Falla and his wife have a 40% share, withdrew its lower tender to build the Princess Elizabeth Hospital's new clinical block. The move leaves taxpayers having to find another £2.4m.

Deputy Jones said he and deputy chief minister Bernard Flouquet and Treasury minister Lyndon Trott met States Supervisor Mike Brown last year and had raised the issue in 'fairly robust terms' with Deputy Falla.

They felt it was important that, as Commerce and Employment minister, Deputy Falla distanced himself from the 'nepotism, hospitality and patronage' he was used to accepting in the days before he was a States member.

Deputy Jones accepted Castel electors had voted for Deputy Falla knowing his business interests. But three-quarters of islanders had not and neither did anyone know he would become Commerce and Employment minister.

There was nothing complicated about it, he said, and some members of Health and Social Services were so desperate to see the PEH project proceed that they would have been happy for nothing to be said.

'Well I'm afraid that's not me. Deputy 'Barry' Brehaut for instance would have sold several members of his family to get this contract passed without question,' said Deputy Jones.

Deputy Brehaut said last night his stance in requesting that ministers consider their position had undoubtedly resulted in a strained relationship between him and Deputy Jones.

The pair worked together on Housing and Deputy Brehaut admitted being forthright with his views.

'Dave was snapping at the heels of establishment figures long before he was elected to the States and afterwards,' he said.

'The situation now, however, is that while he might not like to be seen as such, Dave is a member of the political establishment and I will exercise my right to challenge it when I see fit.'

Deputy Jones said nobody, especially those who were wringing their hands and shouting to accept the £2.4m. higher tender, had been forced to do so and they could have voted against it at the States meeting.