A selection board member tasked with choosing a fast ferry partner for Gozo Channel declared under oath that the company finally selected to operate the service failed to meet the minimum technical criteria in the requested tender.

The contract has since been nullified.

The declaration, which puts pressure on the government to explain what went on behind the scenes, is included in a sworn affidavit presented in court.

In his declaration, Ing. Paul Cardona, an expert in the maritime industry, said he was “very surprised” to learn from the newspapers that a first evaluation report drawn up by his committee had been ditched by the government.

“The conclusion of the evaluation committee was that the award should be given to Virtu Ferries,” he said in his statement.

The issue focuses on the selection of a provider to start offering a fast ferry crossing between Gozo and Malta. The service, which will be heavily subsidised through public funds, was eventually awarded to Islands Ferry Network by another committee before it was cancelled last week amid claims of irregularities by Virtu.

Ing. Cardona said: “I must categorically state that all members of the evaluation committee participated in full in drawing up the adjudication award and report and the decision was unanimous, with each member of the committee expressing their opinion very openly in the committee meetings that the difference between the two tenderers was so extensive and large that there was absolutely no doubt that Virtu had the best offer... the offer made by the Joint Venture (Islands Ferry Network) did not satisfy the basic requirements.”

Mr Cardona also revealed that the conclusions of the selection process, drawn up by a committee chaired by former Labour mayor Anthony Valvo, Maria Sciriha and Mr Cardona, were immediately questioned by Gozo Channel. The report was given by hand to the Gozo Channel chairman Joseph Cordina, who asked the committee if it was sure about its decision.

I found out through the press about the new tender issued

“We confirmed the contents of the report and clearly advised him that there is no way that the joint venture (Island Ferries Network) would comply with the minimum requirements of the tender,” the sworn affidavit states.

'Opposite result'

Ing. Cardona expressed his surprise when he learnt that Gozo Channel had signed an agreement with Island Ferries.

“I then later found out through the press that there seemed to have been another tender issued, the result of which was opposite to the result of that which the evaluation committee on which I had served had decided.”

The Public Contract Review Board decided to cancel the Gozo Channel agreement last week, stating that the government entity breached public procurement rules. The government and Gozo Channel have still not reacted to the development. Efforts to contact the Gozo Channel chairman were in vain by the time of writing.

How the tender was awarded

A tender was issued by Gozo Channel in 2017 to select a fast ferry partner. A selection committee was set up.

After reviewing the submitted offers, it reached the conclusion that Virtu Ferries had made the best technical and financial offer and was to be selected as Gozo Channel’s partner.

After starting final negotiations with Virtu, Gozo Channel suddenly stopped the process and decided not to follow the recommendation. Instead, it issued a new tender, slightly modified, changed all the evaluation board members and on the Office of the Prime Minister’s recommendation appointed Joseph Cuschieri as chairman of the selection board.

After a new evaluation of submissions, Gozo Channel said Islands Ferry Network had the best offer and immediately signed an agreement even though Virtu Ferries had challenged the decision. Last week, after more than a year of legal challenges, it was decided that Gozo Channel breached the law in its selection, had not followed public procurement rules and ordered the cancellation of the contract.

The tender made it clear the selected partner needed experience in the running of a fast ferry service.

Virtu Ferries, established since 1986, has been providing a catamaran service between various countries, particularly the Malta–Sicily strait, for decades. It also owns fast ferry vessels.

Islands Ferry Network Ltd is a joint venture made up by two companies, Magro Brothers – a Gozitan company known for its variety of tomato products – and Fortina Investments Ltd , the owners of the Fortina hotel and Captain Morgan pleasure cruises.

The company was established in April 2018, a few weeks before signing the contract with Gozo Channel. It does not own any fast ferry vessels.