Transport Malta architects under police investigation, Portelli accused of conflict during €40m contract appeals hearing

Two Transport Malta architects are under police investigation, according to declarations by Transport Malta chairperson Mark Portelli, during a hearing at the Public Contracts Appeals Board.

The architects were accused by the firms Polidano Bros and Giustino Costruzioni SpA, who appealed a decision to award a €40 million Ten-T Road Network contract to the Schembri Group, of dining at a restaurant owned by the contract winner’s owner, known as ‘Dobbu’.

The tender is for the upgrading of five sections of the Ten-T road network, namely the Council of Europe Avenue and Garibaldi Road in Luqa, the Sea Passenger Terminal road, Marfa Road and the Mellieha Bypass, and Mgarr Road in Gozo.

The contract decision was appealed by Polidano Bros, after it had been disqualified for not including a Financial Identification Form and a Non-Collusive Tendering Certificate in its bid.

Polidano said it had submitted these documents in a CD it presented with its offer, and then alleged that the two TM architects responsible for the Ten-T tender had been seen dining at Schembri’s restaurant.

During the appeals hearing, it was revealed that the two architects had been placed under investigation by the police.

On its part, the Schembri Group said that TM chairperson Mark Portelli himself had a conflict of interest as the managing director of Peninsula Investments, which runs the Westin Dragonara hotel that is also owned by Polidano Bros.

In its decision, the appeals board said “it was not convinced that the procedure followed (by the evaluation board) was the most practical, with the Evaluation Board seemingly falling short of conducting a proper assessment, overlooking the process and details submitted, hat were either found when further analysis was conducted the hearing or else, amply identifiable in other areas.”

The appeals board allowed Polidano Bros to be readmitted to the adjudication process, and the contract to be reopened.

This is not the first time Portelli is accused of having a conflict of interest as chairman of the transport authority, and his private interests. Mark Portelli is shareholder in Virtù Steamship, which forms part of the Manoel Island Yacht Yard Ltd: the consortium that has been awarded the Manoel Island Yacht Yard. Amongst its shareholders is Midi – the developers of Tigné Point and Manoel Island – which is also involved in the yacht marina industry, an activity that Transport Malta must regulate.

Transport Malta writes (2 August 2010)

"Please be informed that Transport Malta Chairman, Mark Portelli, did not attend the Public Contracts Appeals Board hearing and furthermore did not testify before the appeals board. Consequently the ‘declaration’ and ‘testimony’ you refer to in your posting is entirely fabricated and false."