Mega projects stuck as contracts appeals board in limbo

Several projects and multi-million-euro public contracts have been stuck as the government’s Public Contracts Review Board (PCRB) has not met for several months.

The Shift is informed that the Board, established by law and responsible for deciding on objections to the award of public contracts and concessions according to public procurement rules, is not meeting and has accumulated a long list of cases that will take months, if not years, to decide.

Among the projects stuck at the PCRB for almost a year are government concessions of public land and buildings, including the former Chalet building in Sliema and the controversial Evans Building concession in Valletta, which will be turned into a five-star hotel.

Also, one of the government’s largest-ever contracts, an already delayed €600 million project for an incinerator in Magħtab, is at a complete standstill.

The unprecedented situation is also affecting many government contracts, particularly in the health sector, which cannot be awarded until the PCRB makes a final decision.

The worrying situation at the PCRB also has a knock-on effect on the whole public tendering process, which may include another appeal stage in Court.

The PCRB’s failure to make decisions means no appeals are being presented in Court, further lengthening the government’s procurement process.

Sources at the PCRB confirmed the Board has not met since June. They told The Shift that Chairman Kenneth Swain, an accountant by profession, was not calling meetings.

“We have been in a complete limbo since June as objections continue accumulating,” sources said.

“Businesses call us constantly to complain, but we cannot do anything. Both the prime minister and the finance minister are aware of the situation but have done nothing so far,” the sources added.

Minister Clyde Caruana did not reply to questions.

The prime minister, on the advice of the finance minister, appoints the PCRB’s members, including its chairman.

The PCRB stopped functioning just a few days after the court struck down a decision over the €600 million incinerator tender.

The court annulled the PCRB’s decision, insisting that it was irregular since Chairman Swain and two other members, Vince Micallef and Stephanie Scicluna Laiviera, were found to have a conflict of interest.

Originally, the PCRB had confirmed a controversial decision by Wasteserv – the government’s waste management agency – to award the incinerator tender to a consortium in which road contractors Bonnici Brothers had a 40% stake despite having no experience in such projects.

The Maltese contractors are very close to Prime Minister Robert Abela. Their managing director, Gilbert Bonnici, was also in business with Abela when the prime minister was a lawyer.

Following an appeal by multi-national company Hitachi Zosen—Terna, the Court struck down the contract award and ordered the PCRB to restart the appeal process with a board composed of new members. Since then, the board has not met.

The PCRB includes Swain, Micallef, and Scicluna Laiviera, as well as Richard Matrenza, Charles Cassar, and Lawrence Ancilleri.