€5.9 million car tender for judges raises alarm: ‘Process rigged to favour one company’

Vehicle leasing companies are up in arms against a decision taken by the justice ministry to award a car leasing tender for members of the judiciary to the highest bidder.

Due to a puzzling decision yet to be clarified, taxpayers will spend nearly €20,000 per year for every car leased and used by judges and magistrates. This is especially concerning since some bids offered the same service for half the price.

Through this decision, the transport provisions for members of the judiciary – an element of their already substantial remuneration package – will cost taxpayers €100,000 per judge and magistrate over the five-year contract term, amounting to a total of €5.9 million.

The tender was issued by the Court Services Agency last January. It called for the leasing of 62 plug-in hybrid SUVs for a period of five years. The Agency estimated the tender cost at €6.9 million.

A number of car leasing companies, including some of the most established, submitted bids ranging from €2.3 million to €5.9 million.

Although the price was not the sole criterion, industry insiders were stunned when they discovered that the government chose the highest-priced offer, at €5.9 million, submitted by a Bulebel-based company, South Lease Ltd.

South Lease Ltd is owned by Joseph and Ruth Scicluna from Zabbar and has received significant government tenders during the past years.

During the competitive process, many participants sensed something was amiss, as the tender required the winning bidder to demonstrate an annual revenue of €1 million from a single contract. Competitors urged the removal of this restrictive and anti-competitive clause, arguing that it “undermined competition.” The government refused.

Alleging foul play, the Malta Vehicle Rental and Leasing Association called for an independent review of the entire process, asserting that the tender had been pre-determined through criteria deliberately designed to favour a specific bidder.

Yet no objections have been filed with the Public Contracts Review Board (PCRB).

Under public procurement rules, bidders have the right to file an appeal with the PCRB or the court if objectors do not receive a satisfactory ruling from the PCRB.

Industry sources told The Shift that the winning bidder will provide members of the judiciary with Volvo SUVs. Gasan Zammit Motors Ltd is the local agent of the Volvo make, but was not involved in the tender.

A few years ago, another contract was awarded by direct order as a temporary measure that lasted for years, as the original tender had been awarded to a company controlled by Christian Borg, who is accused of money laundering, kidnapping, and other criminal acts.

The tender awarded to Borg was later dropped and reissued earlier this year.