CLAIMS that R. G. Falla decided to withdraw its clinical block tender before the Policy Council meetings at which it was discussed have been dismissed. In posts on the www.thisisguernsey.com editors’ blog, Health minister Peter Roffey has been defending the department’s position.

He also stressed that Treasury did not contact it about commercial-risk concerns before the preferred bidder status was awarded.

Deputy Roffey’s account is backed by the Wales Audit Office report into the Fallagate saga that ended up costing taxpayers £2.4m.

‘I’m not aware of any attempt by R. G. Falla to withdraw the tender prior to the discussions at the Policy Council,’ said Deputy Roffey.

‘At that stage, when I became aware they might be seeking to withdraw, I did indeed seek to persuade them not to do so. As far as I’m aware, the only reason they were looking to withdraw was because of what happened at that Policy Council meeting on 7 August.’

He added that the main point was that when the project arrived on the council table, R. G. Falla was – as far he knew – still keen.

‘My attempts on behalf of the Guernsey taxpayer to persuade them ‘to keep the tender on the table’ came after the Policy Council discussion.’

The Wales Audit Office report says that Commerce and Employment minister Stuart Falla, a shareholder in R. G. Falla, received copies of Treasury’s letter of comment on the two tenders as part of agenda papers for the Policy Council.

The report added that Deputy Falla said that as chairman of the group he thought it was appropriate to discuss the concerns raised with R. G. Falla managing director Andy Hall before the Policy Council meeting on 7 August. Withdrawal was discussed.

‘The minister for Commerce and Employment has told us that no decision was taken at that point and it was ultimately one for the board of R. G. Falla Ltd,’ said the WAO.

Deputy Falla withdrew from Policy Council discussions on the issue.

He also told the WAO that a meeting with Chief Minister Laurie Morgan on 8 August had significantly influenced his advice to the board that the tender should be withdrawn.

R. G. Falla’s board met on 11 August, without Deputy Falla.

It decided that to address Policy Council concerns it would withdraw the bid, but also offered to delay the project with the price remaining fixed.

There is no evidence provided, according to the WAO, that the tender was withdrawn for commercial reasons.