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GSD: “Government Oversight Failure: Blackout Contractor Had no Licence”

17 September 2025
GSD: “Government Oversight Failure: Blackout Contractor Had no Licence”

The Opposition says it is “deeply alarmed” to learn that the contractor, SDE, responsible for yesterday’s power blackout was operating “without a business licence and without planning permission at the time of the incident.” The party says this “shocking revelation compounds the seriousness” of what was already a “catastrophic failure of Government oversight.” 

A statement continued: “It is unacceptable that the Minister Arias Vasquez, with responsibility for the Office of Fair Trading and Public Utilities, sought to shield herself from criticism by emphasising that the contractor “had the plans.” GBC’s interview with the GEA’s CEO revealed that the contractor may not actually have had the plans on them at the time of the incident. The fact remains that the legal requirement to hold a valid licence and the necessary planning approvals was overlooked. Authorising exploratory works in the absence of such fundamental compliance is not only reckless but a direct breach of the Minister’s duty to uphold the very processes her Ministry is responsible for enforcing. 

“What is even more concerning is that the public was not informed of this critical detail on the day of the blackout. Instead, citizens were left with vague statements and deflections, at a time when transparency and accountability were most needed. The people of Gibraltar had to endure hours without power, businesses suffered financial losses, and vulnerable members of our community were put at risk, all without being told that the works were carried out unlawfully. 

“This is not simply a matter of poor communication. It is a matter of governance and integrity. How could a contractor without a licence and planning permission be allowed to dig into critical infrastructure? Who authorised the works, and why were procedures bypassed? These are questions the Government cannot continue to avoid. 

“The Opposition calls for immediate answers from the Minister as to: 

  1. Why SDE was permitted to operate without a business licence?
  2. Why planning permission requirements were ignored?
  3. Why the public were not told the full truth on the day of the blackout?
  4. Who issued the SDE Business Licence overnight following the incident?”

The GSD’s Craig Sacarello commented, “The scale of this failure goes beyond the serious ramifications of the blackout itself. It is about the rule of law, public trust, and ministerial responsibility. 

“The Opposition will continue to press for full accountability. Gibraltar deserves better.”