Court overturns contract ruling that favoured Bonnici-linked consortium

The Court of Appeal has overturned a decision that would have redirected a €24 million publicly funded contract away from a Chinese supplier and towards a consortium linked to local construction group Bonnici Brothers, dealing a further blow to the island’s public procurement appeals system.

In a judgment delivered this week, the court annulled a ruling by the Public Contracts Review Board (PCRB), which had excluded the lowest bidder from a tender issued by Interconnect Malta, a government agency overseeing energy infrastructure projects financed through EU funds.

The tender concerned the installation of large-scale battery storage systems at Marsa and Delimara, part of Malta’s strategy to improve grid resilience. It was initially awarded to Jiangxi Ganfeng, a Chinese multinational active in battery technology, after it submitted the lowest offer, valued at around €24 million.

The award was challenged by BESSUI JV, a consortium led by Bonnici Brothers, whose bid was approximately €4 million higher.

The appeal was filed by lawyer Ryan Pace, a former assistant at Robert Abela’s private legal office and on 12 different government retainers since his former boss became Prime Minister.

Pace argued that Jiangxi Ganfeng should be excluded based on alleged misconduct by a parent company abroad, despite the absence of any formal exclusion or blacklist under Maltese or EU procurement rules.

The PCRB, led by Vice Chairman Vince Micallef – a PL acolyte –  accepted those arguments and ordered the cancellation of the award to the Chinese company – a decision that would have placed the Bonnici-led consortium in pole position for a contract ultimately valued at close to €28 million.

Jiangxi Ganfeng appealed the decision.

In its ruling, the Court of Appeal – presided over by Chief Justice Mark Chetcuti, alongside judges Christian Falzon Scerri and Josette Demicoli – held that the PCRB had exceeded its legal powers. The judges found that alleged wrongdoing abroad, in the absence of a formal blacklist recognised under Maltese law, could not justify excluding a bidder.

The court also dismissed the PCRB’s claim that missing documentation in the Chinese company’s submission justified annulment, noting that such grounds are not contemplated by the relevant procurement legislation.

The court ordered a fresh evaluation of the tender, reinstating Jiangxi Ganfeng in the process.

The latest decision adds to a growing body of case law in which PCRB rulings have been overturned on appeal.

The Shift News has previously reported that the ostensibly independent board – which adjudicates disputes over multi-million-euro public contracts – is chaired and staffed by individuals with close personal or political ties to Prime Minister Abela and the governing Labour party.

Legal sources told The Shift that the latest ruling strengthened the perception that the PCRB has become “effectively an extension of Castille”, the prime minister’s office, leaving the Court of Appeal as the only reliable avenue for redress in high-value procurement cases.

Bonnici Brothers, a major construction and infrastructure group, has in recent years emerged as a frequent recipient of large public contracts and direct orders. The company is widely viewed as having close ties to the prime minister. Apart from acting as their lawyer, Abela has also conducted private business with Gilbert Bonnici – the Managing Director of the Group.