Rabat road costs shoot up by €2.2 million

The construction of a new road in Rabat cost taxpayers over €2 million more than the original estimate.

An analysis by The Shift of multiple lists of direct orders issued by Infrastructure Malta over the past two years shows that the government’s roads building agency, at the time the responsibility of Minister Ian Borg, issued at least five different direct orders and variations to Bonnici Brothers, over and above the value of the tender.

These direct orders have completely skewed the original tendering process, which according to procurement rules, is won by the lowest bidder.

The tender for the reconstruction of Triq l-Għeriexem was awarded to Bonnici Brothers in 2018, which submitted the lowest bid at €3.9 million. The cost included all the necessary works in the tender until the job’s completion.

Almost all the other bidders, except one, submitted bids under €6 million.

Things changed a few months after the tender was awarded.

Through several direct orders, over and above the original costs of the tender, Infrastructure Malta issued new payments to the same company for various additional works.

These included payments in tranches of €323,000, €804,000, €334,000, €82,000 and €750,000, boosting the final cost for the project paid by taxpayers to €6.2 million.

Infrastructure Malta did not detail the reasons for these additional costs.

In one of the most significant direct orders, the government agency only said this was “for miscellaneous items necessary to conclude this project”.

It has become a trend in recent years for direct orders to top the original value of tenders. This disadvantages competing bidders who submit a realistic price for the service.

In the Rabat road case,  the final cost for the works was more than what some other bidders had submitted, even though they were kicked out of the process.

“This has happened in all major roadworks carried out by Infrastructure Malta and before by Transport Malta, where tens of millions over the allocated budgets were spent through direct orders and variations,” sources close to the agency told The Shift.

Business industry leaders have also confirmed they have received complaints about the lack of a level playing field in procurement processes.

Last week The Shift reported that during the first six months of the year, Infrastructure Malta dished out a record number of direct orders, costing €21 million.

                           
                               
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Francis Said
Francis Said
17 days ago

The Hon. Minister of Finance wants to reduce government expenditure by 200 million euros!!!
Unfortunately, either he is so busy on other matters or has no say on fellow Ministers and their associates on how they overspend taxpayers’ funds. No wonder our National Debt has risen to such levels.
Please don’t just blame Covid or the war in Ukraine.
Take the bull by its’ horns and you will certainly reduce Government expenditure, without using austerity measures way more than the 200 million euros.

Last edited 17 days ago by Francis Said
KLAUS
KLAUS
17 days ago
Reply to  Francis Said

Does Malta actually have a real Finance Minister or just a Fake Finance Minister?

I have to reckon with all the previous miscalculations, but not with serious figures.

David
David
17 days ago
Reply to  KLAUS

Do we have a Ministry of Finance at all?

Charles
Charles
16 days ago
Reply to  Francis Said

Money is no object when thousands of taxpayers contribute! If Clyde wants to cut expenditure,he should together with Bobby look into the lavish expenditure of the fat cat ministers and how the tenders are dished out!!

makjavel
makjavel
17 days ago

This is where criminal investigations should be made , not on a priest who helped families to go through CoVid hard times , putting food on their table.
This a case were the Minister put MIllions on the Plate of Millionaire Friend .

Joseph Tabone Adami
Joseph Tabone Adami
17 days ago

I wouldn’t wonder were we to be told that the additional 2.2 million Euros has partly been offset by the I.00 million slashed from the Malta University’s funding!!

Neither would I exclude that there may, or could also be, other important sectors where ‘similiar’ offsetting savings could be made – but probably never enough of them to make up for reckless overspending on the lines of this instance.

Last edited 17 days ago by Joseph Tabone Adami
carlos
carlos
17 days ago

Hallelin ta flus l’onest. Skankdlu fuq skandlu u l-poplu gifa ferhan bol-korruzzjoni. Pajjiz mifni bisSerq. Qum mir-raqda poplu gifa. Fejn hi l-europa u l-oppozizzjoni? Povra mafiamalta u l-haddim onest..

Charles
Charles
17 days ago
Reply to  carlos

The people of our island.are unfortunately not bothered, otherwise they would be on the finance ministry doorstep

D.V
D.V
16 days ago

Compared to Air Malta Fiasco that’s nothing.
Golden Vote Holders Only!
More expenditure Air Malta
Workers who opt for a golden handshake are being offered anything between €40,000 and €300,000.
The government is offering €40,000 to those who have served up to five years; €80,000 to those serving 5-10 years; €120,000 for 10-15 years of service; €150,000 for 15-20 years of service; €180,000 for 20-25 years; €210,000 for 25-30; and €240,000 for those of over 30 years of service.

Paul
Paul
15 days ago

when they run away everyone will see the difference … these men will go away with their money and the others will be forced to starve here …

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