The government cast aside the original choice of a fast-ferry service provider for Gozo Channel and instead appointed a new selection committee that came out with a different recommendation, this newspaper can reveal.

A previous selection committee made up of five people had chosen Virtu Ferries to partner with Gozo Channel in offering the fast-ferry service.

However, the Gozo Ministry ignored its conclusions, cancelled the selection process, issued a fresh call for expressions of interest and removed all the members of the selection committee, appointing a three-member board instead.

It was then decided that Gozo Channel should instead partner with a company set up just a few days earlier, owned by tomato product manufacturers Magro Brothers and the Zammit Tabonas, owners of the Fortina Hotel and Captain Morgan Cruises.

In May 2017, as the country was in full electoral mode, Gozo Channel issued a call for expressions of interest in the provision of a fast-ferry service, called ‘Preliminary Market Consultation’. Seven bids were received and evaluated by a five-member selection committee, led by the chairman of Gozo Channel, Joe Cordina. In its technical report, seen by this newspaper, the bids were short-listed to three.

It was decided that Virtu Ferries – which has been providing the Malta-Sicily catamaran service for decades – was by far the best option both financially and in terms of experience.

The choice of a partner for Gozo Channel to provide the fast-ferry service was intended to pave the way for the selection of a winning bidder to another tender asking for the provision of essential Malta-Gozo transport services under Public Service Obligation (PSO) rules. The winner of that tender would be granted millions of euros in government subsidies.

However, soon after the selection of Virtu Ferries, something so far unexplained happened. Transport Malta cancelled the PSO tender and re-issued it with a few amendments a few hours later.

Gozo Channel followed suit, ditching the original selection of Virtu Ferries as its partner and re-issuing its call for a prospective fast-ferry partner. The Gozo Ministry removed the five members of the evaluation committee and changed it to a three-person board headed by Joe Cuschieri, at that time the chairman of the Malta Gaming Authority and a close associate of the Office of the Prime Minister.

Direct intervention of Castille

The Sunday Times of Malta is informed that the move followed the direct intervention of Castille.

Proposals were received from the same bidders but the new selection committee came to a different conclusion: Virtu was no longer the best bid and it was recommended that Islands Ferry Network, the joint venture between Magro and the Zammit Tabonas, should be selected as Gozo Channel’s partner.

The Preliminary Market Consultation document issued by Gozo Channel had envisaged that the selected partner should have “the necessary experience, expertise or resources to provide fast ferry services”. Neither Magro Brothers, nor companies owned by the Zammit Tabonas, are known to offer any fast ferry service.

The decision, announced last April in a short press release by the Gozo Minister, incensed Virtu’ Ferries and the company is now contesting the selection process.

According to an appeal submitted by Virtu, the newly selected partner has no experience whatsoever in the provision of fast ferry services, one of the most important criteria contained in Gozo Channel’s call.

Virtu is also arguing that once Gozo Channel is a State company and is funded by taxpayer money, it is bound to follow strict public procurement regulations when choosing its partners.

Gozo Channel is now contesting this, arguing that this was not a proper tender process.

Both the Gozo Ministry and Islands Ferry Network have so far remained tight lipped over the whole issue and refrained from replying to any questions from this newspaper.

Asked repeatedly to name the members of the selection committee and to state who had bid to partner Gozo Channel, Gozo Minister Justyne Caruana refused to give any information, saying she does not want to pass any comments while the tender process is still ongoing.

She also refused to give information following a number of parliamentary questions.

Asked to confirm that the evaluation committee had been changed after it had already made its recommendations, the Gozo Minister did not reply.

No replies: questions to Gozo ministry

1. How many submissions were received by Gozo Channel for a fast-ferry partner by the closing date (May 10, 2017)?

2. Who were the members of the evaluation committee?

3. Did the evaluation committee select a preferred bidder and submit a report?

4. Why was the selection cancelled and re-issued if it had already received the bids and a partner selected?

ivan.camilleri@timesofmalta.com