A study into the business case for developing a Campus Hub was “misplaced” by the university, according to a report by the auditor general.
University rector Alfred Vella has defended the project from accusations that it commercialised campus life, saying the shops there are “useful and attractive”.
Consultants PwC were commissioned by the university to carry out a study into the project back in May 2011, to assess the viability of a public-private partnership.
The auditor general was unable to gain access to the study, with the university saying the report was “misplaced” during the transfer of university offices from Lija to Campus Hub.
“Consequently, the national audit office has no visibility as to the conclusions and recommendations of this report,” the auditor general said.
A better deal?
The NAO report questions whether the university could have gotten a better deal from the project carried out and managed by the Vassallo Group.
Vassallo was the sole bidder for the project, with the auditor general noting that the university could have done more to ensure the bidding process was more competitive.
Although compliant with bidding processes at the time, the auditor general said the university did not capitalise on the benefits associated with tendering through the department of contracts.
Instead, it decided to issue its own request for proposals, “forfeiting” the benefit of the department of contract’s expertise in formulating tenders.
“Moreover, through this approach, publication of the request for proposals was mainly limited to local sources, thus not ensuring widespread exposure overseas,” the auditor general said.
The university argued that the project was discussed with the contracts department and the university was referred to a government investment body for assistance.
According to the report, the university said it needed a private entity to carry out the project as the government was not in a position to grant the funds necessary for it to build the hub itself.
At the time of the tender, the investment required was estimated at over €24 million.
The audit report criticises the university for underestimating the amount of space it would need to lease back from the Campus Hub operators.
In 2019, it agreed to rent space from Campus Hub at a rate of €75 per square metre per year.
Attached files
A further agreement was signed in 2021, once the university realised it would need to rent a further 1,088 square metres from the Hub. The additional rented space was charged at €153 per square metre, twice the original rate.
While the auditor general acknowledged that the additional space was rented at a “favourable rate” when compared to market prices in 2021, the need for additional space could have been anticipated earlier and locked in at the original rate of €75.