Lower bid wins Marsa lease despite rules favouring highest offer – both bids tied to same owner

A prime 600 square metre public property at the Marsa Sports Complex has been granted on a 15-year lease to the lowest bidder, despite tender conditions stipulating that the concession should go to the highest financial offer.

The tender drew only two bids – both ultimately linked to the same entrepreneur – raising fresh questions about oversight and collusion at SportMalta, the government agency administering the site.

The concession was awarded to AM Fitness Two Ltd, which offered €680,000 in lease payments over the 15-year term. A second bid, submitted by AM Fitness Ltd, pledged nearly double that amount at €1.3 million.

Corporate records show both companies are owned by Toni Micallef, the founder of the rapidly expanding Best Gyms Malta chain.

Micallef, a former bodybuilding athlete known for his proximity to Education Minister Clifton Grima and the Labour administration, has already secured access to other public property. These include gyms at SportMalta’s Tal-Qroqq national pool complex and at the government sports centre in Kirkop.

The latest Marsa award further consolidates his presence in public sports infrastructure.

SportMalta declined to explain why the concession was issued to the lower of the two bids, nor whether it was aware that both submissions originated from companies controlled by the same owner. Micallef also did not answer questions submitted by The Shift.

The agency, which falls under the Education Ministry, also did not respond to questions about potential conflicts of interest.

Industry operators, who are currently benefitting from a government scheme offering free gym memberships to thousands of young people, say attempts to obtain clarity on the tender were met with silence.

Accusations of preferential treatment between SportMalta, the ministry and Micallef have been mounting, particularly after previous disclosures regarding the opaque terms under which Best Gyms operates from Tal-Qroqq and Kirkop.

Since opening his first gym in 2015, Micallef has emerged as one of Malta’s leading fitness centre operators, expanding to eight locations and planning new outlets in Marsa and Birgu.