MIA denies claims of nepotism in retail outlet decision

Malta International Airport plc yesterday replied to an application for a warrant of prohibitory injunction filed against it by Leaders Limited.

The latter company filed its application with urgency on Saturday, requesting the court to prohibit MIA from taking any action to evict it from the shop it occupied at the airport departure lounge.

The application was provisionally upheld by Mr Justice Gino Camilleri in the Civil Court.

In its reply, MIA categorically denied the allegations of favouritism and nepotism made by Leaders, and it added that it had acted correctly in accordance with the contract it had with Leaders.

MIA declared that Leaders was violating the basic legal principle that contracts were to be observed.

Leaders was also unilaterally attempting to override the juridical relationship between the parties, when this could only take place with the consent of all the parties to the agreement.

The contract between the parties provided for recourse to arbitration in the event of any dispute.

Once Leaders had submitted that the contract entered into was one of lease, rather than a service agreement, then Leaders could have taken the matter to arbitration during the contractual period, rather than applying for a warrant of prohibitory injunction just when the contract was due to expire.

This, said MIA, clearly showed that Leaders was acting in bad faith.

No warrant of prohibitory injunction could be issued unless the court was satisfied, on a prima facie basis, that the applicant had a right that had to be protected.

In this case, not only was it clear that no such right existed, but that Leaders was trying to establish the relationship of landlord and tenant between the parties.

Leaders had accepted, in writing, that it was aware that its concession ended on July 19. The warrant could not be issued to change an acceptance already made by the applicant company.

Furthermore, MIA submitted that Leaders had not proven that it was going to suffer irremediable harm should the warrant not be issued.

MIA further added that the contract between the parties was not a rental agreement, for the location of the concession could vary, and the consideration payable varied according to the sales made.

MIA insisted that it had acted correctly, and that it had selected Franks Travel Retail Limited, rather than Leaders, on purely objective and scientific criteria, and not out of nepotism.

The company concluded its reply by declaring that the sworn statement made by Nicholas Degiorgio and exhibited by Leaders constituted a breach of the obligation of confidentiality on the part of Degiorgio.

The latter, as a former chairman of MIA, could not reveal information pertaining to MIA. The company therefore requested the court to remove Degiorgio's statement from the records of the case.

The court was requested to revoke the provisional warrant issued.

Together with its reply, MIA filed statements confirmed on oath by Patricia Apap Bologna, Michael Bianchi and Norman Cassar.

Apap Bologna declared that Paul Apap Bologna, one of the directors of Franks Travel Retail Limited (FTR) was her son, however she added that she had no say, whether direct or indirect, in the decisions taken by MIA to appoint FTR to run a retail outlet at the airport.

She claimed that she was not a director of any of these companies, and that her involvement in her family's business was totally passive, as she was not involved directly in the running of the business, save for the receipt of dividends.

Apap Bologna added that she owned 16.65 per cent of the shares in Airport Investments Ltd which in turn owned 4.15 per cent of the shares in Malta Mediterranean Link Consortium Ltd (MMLC).

This last company owned 40 per cent of the shares in MIA.

Michael Bianchi said he owned 66.6 per cent of the shares in Airport Investments Ltd, while the government owned 40 per cent of the shares in MIA, with the remaining 20 per cent being held by other private investors.

Furthermore, Paul Apap Bologna was not a shareholder of FTR, but a director appointed by another company, Associated Drug Co. Ltd.

Bianchi categorically denied any interference in the selection of FTR for the airport outlet, adding that he was not a director of MIA or of MMLC.

He added that his lawyers had written to Robert Aquilina, on behalf of Leaders Ltd, to withdraw the allegations made by him in respect of the Bianchi family.

As no retraction had taken place, Bianchi added that he had authorised his lawyers to take legal action against Aquilina.

On his part, Norman Cassar Ferrante, Division Manager in the Business Development and Operations Department of MIA declared on oath that the offer made by FTR was better than that offered by Leaders, and it was for this reason that the contract had been awarded to FTR.

Dr Stefan Frendo signed the reply.