Massive €274m direct order is probably illegal – lawyers

The record direct order worth €274 million, for the 10-year management of a new facility at St Vincent de Paul Residence for the elderly, appears to be in breach of both local and EU public procurement laws.

The government has kept the contract it awarded to James Caterers and Malta Healthcare Company, a subsidiary of the Seabank db Group, under wraps and has refused calls to publish it. However, prominent commercial lawyers have told The Sunday Times of Malta that from what has been published so far, “there are strong indications that laws have been breached and the deal could be challenged both in local and European courts of law”.

As an EU Member State, Malta is bound to observe public procurement rules. These lay down the parameters within which Public Private Partnership concessions such as this can be awarded, how tenders should be formulated and the leeway the government has in modifying an original concession.

According to the group of reputable commercial lawyers, who spoke to The Sunday Times of Malta on condition of anonymity, there are clear indications that these parameters have not been observed.

“So far we know that a tender issued for the procurement of meals and...