Minister ‘ordered dissolution’ of committee to evaluate casino bids - privatisation head

Privatisation Unit chairman Manuel Camilleri told a court this morning that Economy Minister Chris Cardona personally intervened and ordered the dissolution of a technical committee incorporated to evaluate bids relating to the concession of a new casino licence.

Camilleri said former Parliamentary Secretary Edward Zammit Lewis had previously expressed concern to him regarding a potential conflict of interest among members of the technical committee. Minister Cardona ordered that the committee be suspended in spite of the fact that all four members had signed a declaration to the effect that they had no conflict of interest in the issue.

Camilleri said that having evaluated the proposals, Eden Leisure's proposal was adjudged as the “most advantageous for the government”.

Lawyer Henri Mizzi, on behalf of Dragonara, argued that the concession to build a casino was granted solely on the projection of the highest gaming revenue and tax.

Mizzi referred to a letter from the privatisation unit, that stated that “no system of weighting has been adopted with respect to the criteria [used to select the bid].”

“Does this mean that all criteria are weighted the same, or is it completely arbitrary?” he asked.

“From the 13 criteria listed, the privatisation unit apparently adopted a 14th one and made projections on the basis of the business plans”.

Mizzi told the court that Eden Leisure Group had told the press that “when the expression of interest ended last year, we planned to extend the intercontinental hotel around a luxurious casino.”

“Bear in mind that government is issuing a permit for a gambling outlet here. We aren’t talking about a project in the national interest, let’s not inflate things. This isn’t a power station or hospital. When there are all these questions about the integrity of the selection process, is it disproportionate to ask for the government to halt the process?”

Attorney General Peter Grech explained that in order to stop the process, it must be demonstrated to the court that the complainant has a prima facie case, meaning that at first glance, the complainant’s request appears to have a good chance of being upheld. “Once the bids have been made, there is acquiescence to the terms of the request. You cannot say that you did not understand the criteria after you have bid.”

"Furthermore, it is not possible to reduce everything to mathematics,” Grech added. “If you see that this mathematical process is going to result in a perverse result, you need a catch-all provision. There is always a requirement for subjectivity.” The principal reason behind these procedures, according to the Attorney General, is not for Dragonara to obtain another concession, but to create a barrier of entry into the market of another market player, but “one must then dress up these arguments”.

"The process is not yet concluded and no advantage will be gained by anyone should it stop. This reasonably results in a strong suspicion that these are tactics employed simply to draw out the process further”.

At the end of the day, the license is granted by government and government must bear the risk of a decision. "

Grech pointed out that the decision would then be subject to an action for judicial review, and indeed expects a case of judicial review of an administrative action to follow.

“In order to prove a breach in the fairness of the process, the plaintiff went into the merits and I feel this does not give rise to a prima facie case for the issuing of the injunction" said the Attorney General.

Judge Joseph R. Micallef will give a decree on the matter in chambers.