UPDATE: Privatisation Unit calls for new offers for Superyachts as police still probe bribery allegations

(adds Labour reaction)

The Privatisation Unit has relaunched the process for the privatisation of the Malta Super Yacht Services Facility, as police investigations are ongoing into a claim of alleged bribery.

The privatisation processes for the steel fabrication facility and Malta Super Yacht Services were cancelled on 3 February 2010, when the PU claimed the offers had “failed to meet government’s expectations.”

However, the process had been flagged as irregular by one of the bidding consortia for having been stopped in November and then restarted, allowing two separate bidders – Palumbo and Manoel Island consortium – to present a joint bid.

In the meantime, Palumbo successfully won the tender for the ship repair facility and the Manoel Island consortium has only recently taken the keys to the Manoel Island yacht yard facilities.

In June, the chief executive of the Malta Investment Management Company, Mario Mizzi, was questioned by police over claims that he had asked members of a bidding group to grease the wheels of the privatisation process.

In retaliation, Mizzi – now suspended from Mimcol pending the investigations – filed a judicial protest that outed the name of the whistleblower, former bidder and marine engineer Paul Cardona.

Cardona revealed that his allegation had been made known to a member of the Prime Minister’s secretariat back in September 2009 – Leonard Callus – who informed Finance Minister Tonio Fenech. Fenech preferred not to go to the police and ask for an investigation, but instead informed the Privatisation Unit, which included the same Mario Mizzi, and asked them to deny the allegations.

“Based on MSYS’s past performance as well as on the potential future growth of the sector, the government firmly believes that the privatisation of the MSYS facilities represents an attractive business opportunity for prospective investors interested in further developing and operating these facilities for a fixed term. For this purpose, government has decided to relaunch the privatisation process for the MSYS facilities, with a view to optimizing sale proceeds.”

The documentation for the superyacht facility will be made available against the signing of a confidentiality agreement and a payment of €5,000.

The submission of tenders will now have to be made by not later than 1 December, 2010.

Labour reaction
Labour’s main spokesperson for Finance and Economy Charles Mangion insisted that the Opposition “could not understand” how the Government had issued again the call for tenders for the privatization of the Superyachts’ facility “when the police was still conducting its investigations on such serious claims about the same process”.

In a statement issued this afternoon, Mangion recalled how neither the Office of the Prime Minister nor the Finance Ministry, who had been informed about these allegations, referred the case to the police earlier.

“At a time when it looks like the police investigations have not been concluded, and while there are still claims about the behaviour of a person at MIMCOL, which was still allegedly involved in the privatisation process, it would be much wiser if the Government had waited for the outcome to take corrective action if the need arises,” he lamented.

Mangion accused the government of “lack of coherence”, with the government issuing a public call for tenders for the Superyachts’ facility while for the White Rocks project in a “prime site”, issuing a direct order without giving the opportunity to different entrepreneurs to make their offer.