An architectural firm owned by former Labour MP Charles Buhagiar got a €600,000 contract through a direct order after it was disqualified from a competitive tender for the same job, Times of Malta is informed.

The controversial decision by Malta Industrial Parks, the government’s entity entrusted with the management of industrial zones, involved architectural services in connection with the building of a €9 million industrial hub in Xewkija.

Charles BuhagiarCharles Buhagiar

A tender for project management and other supporting services was issued through the contracts department last October.

The sole bidder, Med Design Associates Ltd, quoted a fee of €581,618.

When the tender was closed, the contracts department said it was cancelled because “the tender procedure has been unsuccessful, namely where no qualitatively or financially worthwhile tender has been received or there has been no response at all”.

Sources familiar with the process said that according to procedure the tender had to be re-issued. However, MIP decided to give the job to Med Design through a direct order for the same price offered originally in the cancelled tender.

Asked about the matter, MIP’s chief executive officer, Karl Azzopardi, acknowledged that Med Design had been disqualified and that the tender cancelled.

“Med Design Associated Ltd was disqualified on a mere administrative issue mainly that the bid bond was in the name of Malta Industrial Parks rather than the Director of Contracts, as stipulated in the tender document,” he said.

He said a fresh call for tenders was not made and that the job was given to Med Design through a direct order because of the urgent nature of the works in question.

Mr Azzopardi said that “in view of the very tight deadlines of the project, MIP was precluded from re-issuing the tender since doing so would jeopardise the envisaged commencement and eventual completion of the project as well as the disbursement targets”.

Industry sources described the entire process as “a farce”.

“It seems that direct orders have now become the rule of the day where everyone can do as they please with no checks and balances. If the government wants to continue like this it might as well not issue tenders any more,” they remarked.

MIP was recently involved in a controversy when it gave a large tract of virgin land in Xewkija to a private company to develop the area in garages. Instead of issuing a call for tenders, the company, Ta’ Maggi, was hand-picked by the government agency.

MIP said it allocated the land according to legal provisions on industrial facilities.

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