A property rented by the government from the Gozo Curia in 2013 for use as a home for the elderly is still not operational, despite €1million having been spent in rent so far. And it is still not clear when the first residents will move in, a report by the Audit Office has said.
The project to transform the former Għajnsielem youth hostel, Dar San Ġużepp, into a government-run residence for the elderly was announced by the Gozo Ministry in 2013. The home was to have 70 rooms and 140 beds.
The Audit Office said the agreement is still in place and rent is still being paid. However, the building remains unfinished, without basic structures such as apertures, and hence it has never accommodated older persons.
The project suffered a string of delays, some of which the Gozo Ministry had no control over.
Among them was two-year delay between 21 July 2013 and 18 February 2015 related to the issuing of planning permits.
But the Gozo Ministry published a tender for the finishing, furnishing, outfitting, operations, management and maintenance of the residence more than two years after the conclusion of a study outlining the preferred financial and economic options for the project.
"While it is the government’s prerogative to ensure that the finishing of the project, together with the management and operations of the residence adheres to value-for-money principles, it bears pointing out that such a residence started with the premise of it being a government-run residence," the Audit Office says in its report.
"It would have been more beneficial if such a study and ensuing strategic decisions had been undertaken in anticipation of the lease of Dar San Ġużepp from Gozo Diocese."
It said the evaluation of tender bids and the appeals process needed more than two years and then the Public Contracts Review Board requested that the bids be evaluated.
"At the time of writing this report, the Gozo Ministry could not set a definite date when this project was to be finalised and the first residents accommodated," the Audit Office says.
"The project was characterised by delays in all its major phases. This is symptomatic of planning and contract management weaknesses, which were not solely within the ministry's responsibility. A case in point relates to the tendering evaluation process, which also prolonged this project significantly.
"Due to these management issues, the Ministry of Gozo has so far incurred an expenditure of around €1 million as rent without any apparent benefits. It is evident that expenditure relating to the rental of this residence will continue to escalate without any benefits in the near future. In addition to this expenditure, the final cost of this project remains subject to the conclusion of the revaluation of the tender bids," the report adds.