Court revokes Maltco injuction, gives green light for lottery concession tender to go ahead

The First Hall of the Civil Court, presided by Mr. Justice Joseph Zammit McKeon has revoked a temporary injunction obtained earlier this month by Maltco Lotteries against government, and has given the green light for the Gaming Authority and the Privatisation Unit to go ahead with receiving, processing and adjudicating a call for tender for a national lottery operator.

In its judgment, delivered in Chambers, Judge Zammit McKeon said that Maltco did not satisfy any criteria under law for the courts to uphold the injunction which was temporarily imposed until all parties made their submissions.

The courts said that Maltco failed to prove its rights to hold the call for tenders, while also pointing out that the company knew well that it held a licence which granted it the concession for the rights of the National Lottery of Malta for a period of seven years, which will in fact be extended by one year.

While another court is currently deciding on a judicial review of the issues raised by Maltco, which is insisting on its right to continue with its operations on the basis that government should have re-considered it for the next seven years, Judge Zammit McKeon said that it was not in his remit to prejudice that case.

Judge Zammit McKeon said that Maltco failed to prove its case, while government - through finance minister Tonio Fenech, the Attorney General and the Gaming Authority - made it clear what is to happen the day after Maltco's concession expires on July 4, 2012.

Giving evidence on Tuesday, finance minister Tonio Fenech said that should the injunction not be revoked, government would be left with no choice but to reconstitute the Public Lotto Department.

The minister explained that it was a Cabinet decision to extend Maltco's concession for a year, and issue a call for tenders with the aim of increasing the licence value.

Fenech warned that the injunction would have impacted on the country's finances.