Taxpayers forced to pay almost double the market value for offices to be used by new Authority for Gozo

Taxpayers are being forced to fork out almost double the market value for the rental of office space for the newly-established Gozo Regional Development Authority, official documents show.

In a move that goes against the norm in procurement regulations, the Gozo ministry is awarding the five-year contract to the highest bidder instead of the lowest.

The Shift has looked into the tender issued last October by the Gozo ministry calling for some 350 square metres of office space in central Victoria to house the new Authority. The market value of this tender, established following research based on current market prices, was some €55,000 a year.

 

The estimated value by the contracts department for the leasing established through market research

Yet after a long adjudication process, the tender was awarded to the highest bidder, Elzan Construction Ltd – a Gozitan company, owned by Francesco Ranier Grima, for almost €80,000 a year, which is far more than the established value and current market prices for similar properties in the same location.

Elzan Construction’s bid was €400,000 over five years. The lowest bidder, another Gozitan company called GTS limited, proposed €45,000 a year or €225,000 over five years.

In a move that is not typical in such tendering processes, the bidder that should have won the tender, GTS Limited – owned by Joseph Attard from Xaghra, withdrew the bid after being given the go-ahead to sign the lease contract, paving the way for Elzan Construction to grab the lease.

The tender document shows the bids submitted

Replying to questions, the Gozo ministry confirmed that the tender was awarded to the highest bidder.  A spokesperson said the ministry was not at fault since it was ‘forced’ to award the tender to the highest bidder.

“Since the lowest bidder, despite winning, withdrew his offer at the eleventh hour, and the two other bidders were not compliant, the successful tenderer was Elzan Construction even though it had the highest bid.”

Apart from GTS Ltd, other bids were submitted by the Gozo Curia (€251,000) and Galabel Enterprises Ltd (€210,000).

Yet according to the ministry, the other two offers were not compliant.

As a result, over the term stipulated in the tender, taxpayers will be forking out €174,000 more than the lowest bidder.

The ministry had the option of annulling the tender and re-issuing it since the winning bid was far more expensive than the established market value. There was no explanation about the reason for the decision to press forward with Elzan Construction despite the exorbitant rates to be paid.

                           
                               
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Paul Bonello
Paul Bonello
1 day ago

Gozitan manipulation of the free market; this is what makes the Maltese Mafia, aided and abetted by our corrupt state

makjavel
makjavel
1 day ago

Why NOT COMPLIANT. Facts please . This is like the Electrogas Contract.

Joseph Tabone Adami
Joseph Tabone Adami
1 day ago

“There was no explanation about the reason for the decision…”

For those who believe anything thrown to them, no explanation is necessary.

For those who do not, no explanation is acceptable.

Last edited 1 day ago by Joseph Tabone Adami
Greed
Greed
1 day ago

The sheeple just baa there is no other thing they can say or do as for them this behaviour is normal

Francis Said
Francis Said
1 day ago

I have been harping that the PL in government thinks that taxpayers’ money is there for them to spend as they wish.
If it were their own money, I am sure that they would be more careful in how they spend their own funds.

Peppi
Peppi
1 day ago

Ma dan il-Ministru kollox id-doppju Alla jbierek. Hux l-istess direttur tas-soltu involuta ukoll. Ministeru tal-korruzjoni u mbrolji messhom semmewh flok ghal Ghawdex. TAL-MISTHIJA

carlos
1 day ago

H A L L E L I N ta flus il-haddiem Malti. Sewwa taghmlu la l-poplu gahan.

carlos
1 day ago

Meta l-korrot gvern li ghandna jimla l-bwiet tal-ministri korrotti u tal-hbieb, u ma jkuunx hemm x’tahleb aktar, kulhadd idabbar rasu u jhalli l-haddiem ihabbat wiccu mal-mewg waqt li huma jibqghu jgawdu l-frott mis-serq li jkunu ghamlu.

M.Galea
M.Galea
1 day ago

A reward for giegu thanking him for the ugly blocks of appartments he construct, turning Gozo into a cesspit! Someone still in doubt that politicians are not developers themselves??

Calypso Rot
Calypso Rot
1 day ago

Together with Portelli, Giegu does pretty much as he pleases in Gozo. Perhaps The Shift would care to delve into his past.

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