MGA avoids procurement rules by splitting ICE London contract into four

A recent contract related to the provision of a trade fair stand in London was split into four parts by the Malta Gaming Authority (MGA) in a manoeuvre that avoided public procurement rules.

The case refers to the procurement of services from a local company to supply the MGA stand at last February’s annual ICE London gaming event.

Instead of issuing a global tender for all the services required for the event, the MGA, under the direction of CEO Karl Brincat, opted for four consecutive direct orders that were awarded to Casapinta Design Group Ltd – all at under €10,000 each.

According to public procurement rules, direct orders can only be given, with authorisation, if the cost of the contract does not exceed €10,000.

In order to avoid a competitive process and instead direct the contract to a particular company, the MGA gave Casapinta Design Group Ltd direct orders for the stand’s “electricity” (€9,840), another for “Stand Furniture” (€8,500), another for “Stand Rigging” (€9,475) and a fourth direct order for “post inspection expenses” (€9,665).

In all, the same company was paid almost a total of €40,000 for the same contract, which was split into four separate invoices that were spread out over a month.

Even though Casapinta is an old hand at the design and mounting of such exhibition stands, the designs for the MGA’s ICE London exhibition space were procured from a different company, Redorange Image Consultants Ltd, which is more known for its marketing acumen than for its stage designs.

The PR firm has received four direct orders in just six months and is regularly awarded MGA contracts. In addition to the designs for the ICE London stand, Redorange was paid €5,900 for the artwork and design of the MGA’s 2022 annual report, €8,942 for its printing and social media campaign, and a €6,900 direct order for the designs for a stand at the local SiGMA 2022 exhibition.

Interestingly enough, the direct order for the SiGMA stand design was issued in February 2023 although the event was held in November 2022.