Leaked minutes from the Policy Council – Guernsey’s equivalent of Jersey’s Council of Ministers – show that Commerce and Employment Minister Stuart Falla, who has a 40% shareholding in building firm RG Falla, was accused of being ‘politically compromised’ after the firm won £81m worth of States capital contracts.
That accusation led to RG Falla’s bid to build a hospital extension being withdrawn.
Because it was the lowest on the table, the cost of the project rose by £2.4m.
In a heated meeting with Deputy Falla, Chief Minister Laurie Morgan told him to ‘consider his position’ over the emerging scandal, but the Commerce and Employment Minister refused to resign.
And although other members of the Policy Council had questioned their fellow minister’s involvement with RG Falla, they never wanted it to become a resignation issue.
