A controversial out-of-court settlement reached last year between contractors Bonnici Brothers and the government has led to the payment of an extra €765,000 to the contractors despite them being found responsible for shoddy works and the recipients of unauthorised direct orders.

The settlement agreement, signed at the end of last year by Sportmalta CEO Mark Cutajar and Gilbert Bonnici, the managing director of Bonnici Brothers and business partner of Prime Minister Robert Abela, is based on a mediation report presented by Architect Valerio Schembri.

While the report, seen by The Shift, concludes that Bonnici had done the work, even though no invoices existed and Sportmalta sought no authorisation, it dictated that in return for their new massive payment, Bonnici Brothers had to remedy the shoddy works.

A list of these remedial works supposedly agreed upon with Sportmalta, has not been published. So far, it is unclear whether the work has taken place.  Sportmalta CEO Mark Cutajar has not replied to questions.

The ‘state-of-the-art’ shooting range at Ta’ Kandja remains underused and fully controlled by the government instead of its intended manager, the Malta Shooting Federation, sources have told The Shift.

Latest deal under wraps

The government has refused to publish the out-of-court settlement for the past year.

To avoid publication, through the education ministry, the government turned down several requests in parliament and other questions by The Shift.

Following a lengthy legal battle over a Freedom of Information request, the agreement was sent to The Shift, although it had missing annexes.

The agreement reveals that despite the shoddy work and bad workmanship, Bonnici Brothers still managed to snatch another €765,000 in payments over new claims they made after they were supposed to complete the multi-million-euro project.

Architect Claude Mallia certified the works.

The government agreed to pay Bonnici Brothers most of their claims even though they didn’t present any invoices or contracts.

The mediator concluded that since the works were certified by architect Claude Mallia, chosen by Sportmalta through a direct order, the claimed payments were justified.

The settlement report also declares that since most of the works given to Bonnici Brothers were unauthorised and not backed by any procurement documentation, as found by the National Audit Office, the Director of Contracts was told to obtain the necessary authorisations years after the works were completed to be able to pay Bonnici Brothers.

Meanwhile, Bonnici Brothers were supposed to agree to make the necessary repairs to many defective structures, including the pit tunnel and the laying of turf, which have led to the shooting range becoming almost unutilised.

According to the agreement, Gilbert Bonnici drew up a list of works. However, Sportmalta never confirmed its agreement.

Still, the mediator decided to close the case, ordering that Bonnici Brothers must be paid and the list of remedial works suggested by the company to form part of the deal.

The agreement mentions no values or costs for the remedial works.

A questionable project

The project dates back to a few days before the 2017 general elections when disgraced former prime minister Joseph Muscat announced the shooting range project to lure the votes of shooting enthusiasts.

Almost all the work was procured through irregular direct orders, 60% of which were awarded to Bonnici Brothers.

The shooting range ended up costing taxpayers €13 million instead of the projected €7 million.

It has so many defects that it is rarely used. The project was described by the National Audit Office as an exercise in maladministration tarnished by excessive costs and work not covered by contracts.

According to a technical report drafted by Architect Robert Musumeci’s office, the work carried out by Bonnici Brothers was not up to standard.

Robert Abela launching one of Bonnici Brothers’ plants soon after the former became prime minister.

Sportmalta initiated legal proceedings against Bonnici Brothers to try to recoup some of the damages, but out-of-court negotiations began soon after Robert Abela took office, and an agreement was reached last year.

The prime minister was a business partner of Gilbert Bonnici, in addition to being the company’s legal adviser.

Transport Minister Chris Bonett was then in charge of the project as acting CEO of Sportmalta and was identified by the NAO as responsible for the irregular direct orders to Bonnici Brothers.

Earlier this year, the prime minister promoted Bonett to transport minister.