Former Nalcor Energy president and CEO Ed Martin confirmed Wednesday the Italian Ambassador to Canada did talk to Nalcor about Astaldi’s work on the Muskrat Falls Project.
Documents in evidence at the Inquiry include an email on the afternoon of Feb. 10, 2016, from Martin to deputy minister Charles Bown and clerk of the executive council Julia Mullaley, with the subject line: “Astaldi.”
The message was brief.
“Charles and Julia,” Martin wrote. “Just a note to let you know to expect a call soon from Italian Ambassador to Canada to Premier or Minister, also to connect to federal politicians. As I had mentioned, this is an expected path for Astaldi to take. Acknowledge as a commercial issue and refer back to Nalcor - important to keep them with one channel only. – Ed”
The Italian Ambassador to Canada at the time was Gian Lorenzo Cornado, who was in the role from April 2013 to January 2017.
Martin’s email came as the newly elected Liberal government was still trying to decide how to handle the Muskrat Falls Project and problems with main contractor, Astaldi Canada. The contractor and project as a whole were behind schedule and over budget.
At the time, Nalcor held a consultant’s report on Astaldi’s parent company, Astaldi S.p.A., developed on a confidential basis, warning of the parent company’s financial position.
Consultants with EY then warned Premier Dwight Ball about that position. The Italian parent company had worked to address financial challenges, to reduce its financial exposure, EY said, but if it had to declare any significant losses through Astaldi Canada on the Muskrat Falls Project in a year-end report, it “could evaporate that financial relief” from other projects internationally.
“I was never in a position to give instructions to a premier or minister. That’s not the way I would have operated." — Ed Martin
They reported Astaldi had a lot riding on its relationships in Newfoundland and Labrador.
“I was never in a position to give instructions to a premier or minister. That’s not the way I would have operated. So no, I did not instruct anybody,” Martin said, when asked about his email, and the comment the premier should not speak to the Italian Ambassador.
“But what I would say is that – and I’ve always been adamant on this, and I think this is good practice — is that if you’re negotiating with a large contractor, you need to maintain a single point of contact to make sure you’re funneling all of your views through one person,” he said, focused on project costs and contract re-negotiations. “In behind that one person, make sure you’ve got people understanding it, aligned, know what’s happening, and make sure you’re all on the same page.”
Martin said he’s sure he would have had a conversation with the premier along those lines.
He said he did not personally receive any requests from the federal government to maintain business with Astaldi, or to negotiate to any particular ends.
The Ambassador was a different story.
“With the Astaldi Ambassador, I do believe I met with him once or twice. Once was, I think it was a site tour. I can’t exactly remember. But yes, I would have had a conversation with the Italian Ambassador. There were several of us on site for one for sure,” he told reporters.
“It wasn’t as much of a request from him, I don’t believe, in memory. But, you know, obviously they were trying to apply whatever means they could to try to get themselves more money. And we understood that, but we were still polite and respectful,” he said.
“But I certainly never negotiated with the Italian Ambassador with respect to Astaldi, I can guarantee you that.”
Astaldi S.p.A. did eventually file for creditor protection in Italy, in late September 2018.
As for the premier in all this, The Telegram filed a request to the premier’s office last week. The premier was not made available for questions as of deadline.
Twitter: @TeleFitz
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