A court has turned down a request for an injunction that would have stopped the government from using a bank guarantee given by the contractors who built the Sir Anthony Mamo Oncology Centre to make good for unspecified "defects".

BVP Joint Venture - composed of Blokrete, Vassallo Builders and Panta Contracting Ltd - had filed an application for a warrant of prohibitory injunction against the Ministry for Health and the Foundation for Medical Services, amongst others, asking the court to prevent the government from cashing its bank guarantee.

In 2012, BVP had won the tender for the 'design, development and build of Mater Dei Hospital Oncology Centre, including supply of medical equipment through a nominated subcontractor'.

The bank guarantee had been made in exchange of an advance payment from the government's end and to make good in case BVP failed to fulfil its contractual obligations. The guarantee was meant to expire in February 2015 but was extended until September 2016.

An engineer engaged by the ministry had reduced the value to €869,700 after taking into account the costs of remedial works which were needed.

The ministry had submitted a statement detailing three years of shortcomings that were yet to be addressed by the contractors. This, in turn, was contested by BVP, who argued that there were no shortcomings from its end.

Mr Justice Mark Chetcuti held that BVP's setoff claim had no legal or factual merit and that the contractors did not present any prima facie rights against the Ministry.

The court therefore ruled that there was no right for an injunction to be granted.

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