A technical committee established by the government’s Privatisation Unit to evaluate two shortlisted proposals for a 10-year casino licence was dissolved midway through the process due to a conflict of interest involving one or more of its members.
The government kept the dissolution under wraps, not even informing the two competing bidders – Eden Leisure Group and Dragonara Gaming Ltd.
The dissolution emerged from a judicial reply the Privatisation Unit filed in court last Friday in view of Dragonara Gaming’s case to halt the concession grant to Eden Leisure.
The technical committee, chaired by Judge Geoffrey Valenzia, was appointed by the government to evaluate the two selected bids. The Privatisation Unit specifically mentioned a “conflict of interest in the same committee” as the reason for its dissolution.
The two bidders made a one-hour presentation before the committee last March.
However, they were not informed of the outcome until two weeks ago, when the government announced that it had selected Eden Leisure’s bid. The government has now said it is prepared to issue two licences.
Economy Minister Chris Cardona – responsible for the process – did not respond when asked to explain the nature of the conflict of interest and at what stage the decision was taken to disband the committee.
Eden Leisure Group’s submission was to open a casino at the Intercontinental Hotel, St Julian’s, while Dragonara Gaming proposed one at the San Antonio Hotel in Qawra.
Following the government’s announcement at the end of October that it had selected Eden Leisure’s proposal, Dragonara Gaming started legal proceedings to halt the process, accusing the government of a flawed and non-transparent process.
Dragonara is arguing that its upfront concession fee of €4.3 million – €3 million more than Eden’s – meant it should have placed first.
The government is arguing, however, that the upfront concession fee was not the only criterion and Eden’s proposal will generate more income for the government over the 10-year concession period.
The court is expected to start hearing the case tomorrow.