Lands Authority insider wins property tender by €1

A public tender for the lease of premises in Sliema has sparked concern within the Lands Authority after it was awarded to a businessman with close ties to senior officials, edging out a rival bid by a margin of just €1.

Sources informed The Shift that this ‘coincidence’ has raised eyebrows among Lands Authority officials, as the individual who submitted the best bid is well known at Auberge de Baviere, the Lands Authority’s headquarters.

Last month, a tender was issued for the grant on a perpetual, revisable emphyteusis basis of premises at 19 and 20, St Publius Street, Sliema. The winner could redeem the emphyteusis during the first 15 years, making it his own forever.

The offer was set for a minimum price of €7,089 a year.

At the end of the bidding process, which closed last week, many had shown interest, and several bids were submitted.

The winning bid, which, according to the rules, is the one with the highest financial offer, turned out to be Skyecats Ltd, a company owned by Simon Muscat, the owner of several businesses in Gzira, including the Manoel Island Petrol Station.

What struck the officials opening the tenders was that Muscat submitted a bid of €9,251 a year, edging out the second-placed bid of Endo Properties by just €1.

“It’s like winning the lottery,” an official sarcastically said.

Bid documents are kept secret until their opening.

Muscat has very close relations with the Lands Authority and has successfully competed in several property tenders issued over the past few years.

A client of the former legal office of Prime Minister Robert Abela, Muscat, through his company Cubed Turnkey Projects, provides services to the Lands Authority under a framework contract.

In 2022, Muscat was also selected to refurbish the Lands Authority’s headquarters, with works costing several hundred thousand euro and resulting in many direct orders.

Also, a few years ago, Muscat happened to be the only bidder for another government property, situated right in front of his petrol station on Gzira’s main road.

Despite the property issued by tender being in a very sought-after area, only Muscat submitted a bid and was awarded the lucrative property for just €1,000 more than the minimum price.