News • 19 January 2003

Doubtful tendering process discriminated against licensed agencies

By Matthew Vella

Tal-Qroqq - MaltaToday’s follow-up into last week’s report on a University security tender has revealed the irregular selection process which sanctioned the operation of Grange Security & Consultancy Services Ltd at the University of Malta.

This paper can reveal how the security agency filed a tender when it had still not applied for a license to either operate as a security agency, or for its employees to act as private guards.

The tender, awarded by the University of Malta to provide security services for both the University and the Gan Frangisk Abela Junior College, was awarded well two months before Grange Security & Consultancy Services obtained a license to commence operations.

University authorities have defended their "slight departure" by saying that the clause demanding a licence was not exclusionary.

No licence secured

Information confirmed by MaltaToday has revealed that Grange Security and Consultancy Services Ltd, was not a licensed security service provider at the time of tendering.

According to Section 3 of the Private Guards and Local Wardens Act, a security agency cannot operate without being licensed, nor employ security guards without a licence in accordance to the provisions of the Act.

Despite a tender condition stipulating that tenderers had to submit a copy of the Licence of Private Guard Agency, University authorities proceeded to award the tender to the company on 19 November 2002. The violation of the condition has resulted in discrimination against competing licensed agencies that had satisfied the necessary conditions for the tender.

Three weeks following the award, a notice on the Government Gazette of 12 December 2002 confirmed the application for a license by Joe Grange, along with an application for the licences for 15 private guards.

The law for private guards stipulates that a month has to pass following application, in which third parties are invited to challenge the application, confirming that Grange Security & Consultancy Services had not yet received its licence before 12 January 2003.

University authorities have confirmed that the security contract commenced the day that the contractor was in possession of an operating licence. No date of the start of operations was divulged.

University justification

Consultant to the University Rector Albert Attard told

MaltaToday that the tender was awarded to the company subject to it obtaining a licence by a set date: "As you may be aware, the company has been recently set up and its application for a licence to operate as a private security agency was being processed by the police authorities."

Mr Attard insisted that the request for the submission of information and documents by tenderers was not an exclusion clause.

"Tenders were evaluated on their overall value to the University. Slight departures from published specifications are normally rectified before award or else award is made subject to confirmation of compliance within a stipulated time period."

Mr Attard said that when in 2002 the contract for the same security services was issued, this had been done subject to the contractor forwarding a copy of a valid third party insurance policy by a certain date.

"As this company submitted a very competitive offer and having regard to the foregoing, the University of Malta proceeded with the award as is normal practice in such circumstances."

matthew@maltamag.com