Abela in a rush to sign €120 million direct order before elections

Prime Minister Robert Abela has moved a step closer to gifting an unprecedented €120 million direct order to a company led by his former business partner Gilbert Bonnici, after an award notice for the controversial Mater Dei Hospital extension project was quietly issued last Wednesday.

The Shift can reveal that Director of Contracts Adrian Dalli was directed to publish the award notice in favour of CE-BB Projects Ltd (a joint venture formed by Bonnici Brothers and CE Installations) through a negotiated procedure – a form of direct order that bypasses competitive tendering rules.

The notice was intended to trigger a short window during which objections may be filed before the Public Contracts Review Board (PCRB), at a prohibitive cost of €50,000 per objection.

Since the contract is being processed through a direct order mechanism rather than a competitive tender, no formal challenges are expected, clearing the way for one of the largest direct orders ever issued by the government to be sealed before the elections.

While currently leading a caretaker government ahead of upcoming elections, it appears Robert Abela is personally pushing to have the binding contract signed before voters go to the polls.

The main function of a caretaker government is to ensure continuity of government while avoiding major political decisions that could bind or constrain the incoming government.

The massive direct order concerns the long-delayed extension of Mater Dei Hospital’s emergency department and the construction of additional mental health wards linked to the promised replacement of Mount Carmel Hospital.

The process, which could ultimately be deemed irregular if challenged in court or through a future inquiry, is raising serious procurement concerns among senior government officials because the original public tender for the exact same project remains unresolved.

Government records show that the original tender, CT2329/2024, is still officially listed on the e-tenders portal as being “under evaluation”, while PCRB records confirm that an appeal was filed by the same joint venture now receiving the direct order, which is still pending.

The original tender process, which started in 2024, had strangely attracted only one bidder – CE-BB Projects Ltd – which submitted a €136 million offer, far exceeding the government’s original €80 million estimate for the project.

After the Health Ministry moved to cancel the tender over the excessive price, the consortium challenged the decision before the PCRB, arguing that the government’s cost estimates were unrealistic and that the cancellation lacked transparency.

It is understood that the same members of the joint venture, who are legally challenging the government over the original tender, have simultaneously been negotiating behind closed doors with government officials over the same project and a multi-million-euro direct award.

Despite those proceedings still ongoing, the government has now moved to bypass the competitive process entirely and is planning to directly award the same project to the same company through a €120 million direct order – €40 million more than the government’s original estimate.

No explanation has been given for the sudden, substantial increase in costs.

Finance Minister Clyde Caruana, who is responsible for public procurement and government finances, and ultimately politically responsible for the direct order, did not reply to questions from The Shift asking why the government opted for a negotiated procedure instead of waiting for the conclusion of the appeal process and reissuing a competitive tender, as is normally done.

Health Minister Jo Etienne Abela also failed to reply. The Shift is informed that he was completely sidelined from the process, which was managed directly by the Prime Minister.

Director of Contracts Adrian Dalli likewise ignored questions on who instructed him to issue the award notice during an ongoing electoral campaign, whether the Finance Ministry approved the direct order, and why a negotiated procedure was considered necessary for a project capable of attracting multiple local and foreign contractors.

The joint venture benefiting from the award is led by Bonnici Brothers, one of Malta’s largest contractors and a company closely associated with Prime Minister Robert Abela. Its managing director, Gilbert Bonnici, was previously involved in property development ventures with Abela before he entered politics.

The consortium’s partner, CE Installations, is owned by Labour local councillor Marlon Brincat.

Over recent years, particularly since Abela became Prime Minister, Bonnici Brothers has secured several multi-million-euro public contracts and direct orders.