Government denies €273m payment was direct order, Government Gazette suggests otherwise

The government categorically denies that the €273 million payment to JCL & MHC Consortium was a direct order, insisting that it observed the relevant procurement procedure, according to a press release issued by Parliamentary Secretary for Persons with Disabilities and Active Ageing Anthony Agius Decelis.

The payment, however, is clearly listed as a direct order in Government Gazette No. 20,028 of 20 July 2018.

The case in question concerns a report appearing in the Sunday Times of Malta quoting sources as saying that a €58 million contract for catering services at St Vincent de Paul Long-term Care Facility was about to become a €274 million direct order.

JCL & MHC Consortium is composed of James Caterers and Malta Healthcare, a subsidiary of the SeaBank DB Group.

The parliamentary secretary claims that on 10 November 2015 the Department of Contracts issued a public expression for offers on the basis of a public-private partnership. Two offers were submitted and JCL & MHC Consortium was selected on the basis that it was the most advantageous offer in terms of the established criteria.

The decision was contested twice before the Public Contracts Review Board and the Maltese courts, which both agreed with the original decision.

According to the government statement, the consortium then decided to improve their offer, adding a 504-bed extension at the facility along with its management. This was approved by the General Committee for Contracts after technical recommendations. It said that through the deal, the government would be saving €17 million.

At no point in the statement does the parliamentary secretary explain why the figure was listed as a direct order.

On Monday 6 August, Finance Minister Edward Scicluna said that neither he nor the ministry had given any form of approval for a record €274 million direct order relating to St Vincent de Paul and that he had asked for a report on these claims to be compiled.

Reacting, the Nationalist Party (PN) called on the government to clarify itself over its statement, especially given that the €274 million payment had been listed as a direct order in the Government Gazette.

The PN also questioned why the finance minister had denied approving the direct order and claimed he would order a report into the matter.