A €55m government contract for Gozitan developer Joseph Portelli has been canceled after the Public Contracts Review Board (PCRB) found Infrastructure Malta was wrong to disqualify a bidder who offered to do the same work for 18 million euros less.

The cheapest bid submitted was €37.5 million, but the contract to build a new quay and cargo handling facilities at Ras Hanzir, a derelict area of ​​the Grand Harbour, was awarded to the Portelli’s consortium, Excel Sis, for 55.4 million euros.

Bonnici Brothers opposed the tender award, paying an additional €50,000 to appeal. The PCRB ordered the decision overturned and said Infrastructure Malta, which falls under the political remit of Minister Ian Borg, must appoint a new review board.

Eight bids were submitted for the tender, which was to be awarded to the lowest priced compliant bid. The PCRB decision now puts Bonnici Brothers (NQuay Malta) in the front line to win the EU-funded tender.

A war between friends

Both consortia are known for their closeness to the ruling Labor Party.

Joseph Portelli, who openly admitted in a recent interview with The Times of Malta that he regularly speaks to politicians to advance his plans, has been named in connection with a number of illegalities across the islands, including building and the operation of an illegal concrete batching plant in Gozo, built in broad daylight on government property and left to operate unimpeded to this day.

He is also known to be close to Infrastructure Minister Ian Borg.

On the other hand, Bonnici Brothers has received millions of direct orders from the government, especially on major highway projects. One of their biggest deals was in 2017 and 2018, when they received repeated multimillion-euro direct orders for the construction of the National Shooting Range in Ta’ Kandja. The NAO later found these contracts to be “irregular” while the shooting range project remains unfinished.

Prime Minister Robert Abela inaugurating the new Bonnici Brothers factory.

An investigation by The Shift revealed how, in addition to being the Bonnici Group’s legal adviser, Prime Minister Robert Abela was also personally involved in dealings with Gilbert Bonnici, the group’s chief executive.

Along with his wife, Lydia Abela, and Gilbert Bonnici, Robert Abela remodeled a terraced house in Iklin into an apartment building. All the apartments built were sold just before Abela became prime minister.

Former Planning Authority CEO Ian Stafrace represented Joseph Portelli at the PCRB hearing while John Gauci appeared for Bonnici Brothers.

It is not yet known whether Portelli will file an appeal.