Gozo Minister Justyne Caruana is refusing to explain Gozo Channel’s decision to select a company registered just this month and with no experience as its partner to offer a fast ferry service subsidised by taxpayers.
At the same time, The Sunday Times of Malta is informed that Virtu Ferries, which bid for the same public offer, has now taken legal steps to challenge the decision and reopen the process.
In a short statement at the end of last week, the Gozo Ministry announced that State entity Gozo Channel had concluded a public selection process and decided to choose Islands Ferry Network Ltd as its partner to start offering a fast ferry service between Malta and Gozo. According to the ministry, there had been seven submissions in the process, and Islands Ferry Network Ltd submitted the best offer.
The statement was immediately criticised by Virtu Ferries – a leading local operator of fast ferry services – which expressed its surprise at the decision, particularly since the chosen partner did not have the necessary experience in the service.
According to the public offer issued by Gozo Channel, experience was one of the most essential prerequisites upon which the Gozo Channel evaluation was to be based.
Islands Ferry Network Ltd, a joint venture between tomato processors Magro Brothers and the Fortina Hotel owners (the Zammit Tabona family), was only registered with the Malta Financial Services Authority on April 10, a few days before the Gozo Ministry’s announcement.
Virtu has taken legal action to stop the process
Asked to give details on how Gozo Channel came to its conclusions and on the experience of the chosen bidders, and to name the members of the evaluation committee, Dr Caruana refused. She also refused to supply The Sunday Times of Malta with the names of the seven bidders in the public process.
Gozo Channel’s expression of interest clearly stated that the successful partner was obliged to have “the necessary experience, expertise and resources to provide a fast ferry service” and expected “to meet the applicable specifications, requirements and criteria for the fast ferry service as required by the tender”.
According to Virtu Ferries, the company chosen by Gozo Channel has none of these. Asked yesterday if Virtu would take further steps, a spokesman said the company had already taken legal action to stop the whole process.
“Virtu Ferries Ltd has written to the Public Contracts Review Board asking it to order Gozo Channel to eliminate the selected bidder from the tender process on grounds of the bidder’s ineligibility and to order Gozo Channel to carry out a correct re-evaluation of Virtu Ferries bid,” he said.
“We have also asked the board to order Gozo Channel to suspend the procurement process and to carry out a correct re-evaluation.”
The spokesman added that the company has also informed the Director of Contracts that the content of Gozo Channel’s offer – technically called preliminary market consultation – did not follow proper rules, as Gozo Channel, being a contracting authority, has to comply fully with public procurement regulations.
The company insisted that the award of the contract by Gozo Channel to third parties should be cancelled immediately.
Islands Ferry Network declined to comment, saying Gozo Channel was running the process.
ivan.camilleri@timesofmalta.com