PN challenges government over €120 million Mater Dei direct order

The Opposition has intensified its challenge to Prime Minister Robert Abela and Finance Minister Clyde Caruana over a€120 million direct order awarded for the extension of Mater Dei Hospital, a process that breaches procurement procedures.

The direct order raises serious concerns over transparency, procurement rules, and possible sleaze. The Opposition said the government’s silence on the deal was unacceptable, with PN leader Alex Borg insisting that the public deserves clear answers on how such a significant contract was awarded without a competitive process.

In replies to questions by The Shift, Borg challenged the government to explain its “sudden urgency” to issue a direct order to a consortium led by Bonnici Brothers, a company widely regarded as being close to the Prime Minister and the Labour Party.

He warned that the move appears to undermine the principle of a level playing field, stressing that procurement rules must be respected and not manipulated to accommodate “people who are very close to the Labour Party and its leader”.

The PN also questioned whether the contract was effectively directed at entities linked to Abela’s former business partners, raising further suspicions of potential undue influence.

The criticism was echoed by PN finance spokesperson Adrian Delia, who accused Caruana of allowing himself to be used to approve a direct order that may breach procurement laws. The project involves EU funds.

Delia urged the minister to explain how the €120 million figure was arrived at and to ensure taxpayers receive value for money, warning that the situation risks becoming yet another example of mismanagement of public funds.

Despite repeated questions sent by The Shift, neither Caruana nor Health Minister Jo Etienne Abela provided any replies.

Last week, The Shift revealed how the government suddenly decided to award a €120 million direct order to CE-BB Projects Ltd, a consortium led by Bonnici Brothers, for a long-delayed project intended to expand Mater Dei Hospital’s emergency department and add new facilities linked to the replacement of Mount Carmel Hospital.

The decision effectively sidelines a public tender issued in 2024, which remains under appeal before the Public Contracts Review Board.

Official records still list the original tender as being in the evaluation stage, while the same consortium had challenged the government’s earlier move to cancel the process.

The original tender had estimated the project at €80 million.

However, in a very unusual move, it attracted only one bid, from CE-BB Projects, amounting to €136 million, far exceeding the government’s original valuation.

The Health Ministry subsequently cancelled the tender in 2025, citing the high cost. The consortium then filed an appeal, arguing that the government’s estimates were unrealistic and that the cancellation lacked transparency and fairness, and even requested that the contract be awarded to it.

The appeal is still being heard before the Public Contracts Review Board, and no decision has yet been taken.

Despite this unresolved legal process, the government has now proceeded to award the same consortium a direct order worth €120 million – €40 million more than its original estimate, though lower than the consortium’s initial bid.

No explanation has been given for how the cost increased so significantly, or for how the decision complies with procurement rules, particularly EU requirements on transparency and competition.

Since most of the funds for this project are coming from EU funds, the procurement process cannot be carried out through a direct order.

The case has also reignited scrutiny over the links between Bonnici Brothers and the Prime Minister.

The company’s managing director, Gilbert Bonnici, was previously a business partner of Abela in property development, while the consortium’s partner, CE Installations, is owned by a Labour local councillor from Naxxar.

In recent years, Bonnici Brothers has secured several multi-million-euro public contracts and direct orders, further fuelling concerns about preferential treatment.