The government is refusing to explain why it awarded exclusive use of the State-owned Mediterranean Offshore Bunkering Company (MOBC) facilities to a Miami-based international company without issuing a public call for tenders.

The former chief of staff to Energy Minister Konrad Mizzi has been appointed as the company’s CEO with a financial package of €46,000.

Local oil bunkering and fuel companies had formally complained to the government after the deal with World Fuel Services (WFS) last October without a public call or tender.

However, when these complaints were relayed to the government, Dr Mizzi had informed the Chamber of Commerce president that a decision was taken to enter into this deal without a tender as “all local bunkering companies are involved in some kind of court action or are currently under investigation.”

A spokesman for the Energy Ministry failed to reply when asked to give more details on the deal, especially as other international companies may have been interested in using MOBC’s facilities.

He said that WFS was a very reputable company that “can transform MOBC into a Mediterranean fuel logistics and storage hub”.

It can transform it into a Mediterranean fuel logistics and storage hub

The ministry also refused to divulge the duration of the agreement and how much the American company is paying to use the facilities.

The ministry also confirmed that Joseph Montebello, Dr Mizzi’s former chief of staff and a former local councillor in Santa Lucija, has been appointed CEO of MOBC without any public call.

According to the government, Mr Montebello has a financial package “of approximately €46,000 and was appointed to focus on quality management and operations”.

Mr Montebello – who had resigned as the minister’s chief of staff last May, reportedly following a heated argument with Dr Mizzi – has no previous experience of the oil industry.

Following Mr Montebello’s sudden departure, Dr Mizzi had denied that he was fired but said that “he was going to be moved to another position for his services to be utilised better”.

Established in 1982 to operate as bunker supplier, MOBC operates various fuel storage tanks with a capacity of some 46,000 cubic metres.

In 2011, the facility was closed due to environmental issues and opened again in 2013 after the government invested in terminal upgrades.