Infrastructure Malta under scrutiny for direct orders

Malta’s roads agency, Infrastructure Malta (IM), has once again come under public scrutiny after it emerged that millions of euros in direct orders were awarded without adhering to standard procurement rules. The issue has reignited debate over transparency, accountability, and the handling of taxpayer funds in major infrastructure projects.

The matter has gained particular attention following revelations about a €6 million direct order for the construction of a long-awaited quarter-mile racetrack in Hal-Far. Concerns have been raised over how the value of this project increased significantly from initial estimates and whether proper procedures were followed.

The Hal-Far racetrack controversy

The direct order at the centre of the debate was awarded to Elbros, a major construction company with decades of experience in Malta’s building sector. The company was tasked with constructing the new racetrack at Hal-Far, a project that motorsport enthusiasts have long lobbied for.

However, the process by which this contract was granted has raised concerns. Carmel Cacopardo, Deputy Leader of ADPD – The Green Party, publicly questioned the government’s handling of the procurement process. He argued that the €6 million direct order “is only one of many that do not qualify to be issued under direct order terms but should have followed an open and competitive tender.”

Internal estimates within Infrastructure Malta initially suggested that the project could cost approximately €2 million. The subsequent tripling of this figure to €6 million has sparked questions about the lack of transparency in the decision-making process.

Calls for an investigation by the Auditor General

In response to these concerns, Cacopardo has formally called upon the Auditor General to investigate the matter. His request emphasizes the importance of independent oversight to ensure that public money is spent responsibly and that procurement rules are followed.

Cacopardo stressed that the Hal-Far case should not be viewed in isolation, but as part of a broader pattern. He noted that several projects awarded under Infrastructure Malta in recent months appear to have been procured through direct orders, bypassing the safeguards normally provided by open tenders.

The National Audit Office (NAO) has in the past investigated government contracts that raised questions about value for money and compliance with public procurement law. If the NAO proceeds with this case, it could shed further light on the financial and administrative practices within Infrastructure Malta.

Broader concerns over Infrastructure Malta’s procurement practices

The racetrack project is not the only example of concern. Reports in recent weeks have highlighted several other direct orders issued by Infrastructure Malta that allegedly bypassed standard procedures.

Among them is the awarding of approximately €10 million in contracts for works related to a new quay at Ras Hanzir. These works included the multi-million rental of barges from Bezzina Maritime, a company owned by Ranier Bezzina, who is also known locally as the President of Hibernians Football Club in Paola.

Critics argue that such arrangements raise legitimate concerns about both the cost-effectiveness and the impartiality of contract allocations. While direct orders are legally permissible in limited circumstances—such as emergencies or highly specialized services—they are not intended to replace competitive tendering as the standard mechanism for public procurement.

Political context and connections

Infrastructure Malta operates under the political direction of the Transport Ministry, currently headed by Minister Chris Bonett. The Minister has been linked indirectly to the Ras Hanzir project due to his political base in Paola and his honorary role with Hibernians Football Club, of which Bezzina is president.

While no evidence has been presented to suggest wrongdoing on Bonett’s part, such overlapping roles often invite public questions about impartiality and the appearance of potential conflicts of interest. Opposition parties and civil society groups have therefore urged the government to provide clear explanations and documentation regarding the decision-making processes for these contracts.

Infrastructure Malta under Steve Ellul’s leadership

The agency’s CEO, Steve Ellul, has also faced public scrutiny. Under his leadership, Infrastructure Malta has overseen significant roadworks and infrastructure developments across the country. However, concerns have persisted regarding the level of oversight applied to multimillion-euro contracts.

Reports suggest that Ellul has defended the agency’s work as essential for Malta’s long-term transport infrastructure. Nevertheless, questions remain about whether projects are being managed in a way that provides the best value for money and ensures fairness among potential contractors.

The legal framework for public procurement in Malta

Public procurement in Malta is governed by national legislation aligned with European Union directives, which emphasize open competition, transparency, and equal treatment of bidders. Direct orders may be allowed in narrowly defined cases, but their overuse risks undermining these principles.

The European Commission has repeatedly stressed the importance of strong procurement systems in preventing misuse of public funds. If national agencies rely excessively on direct orders, there is a danger of reduced competition, inflated costs, and potential erosion of public trust in institutions.

Public reaction and trust in institutions

The Maltese public has increasingly expressed frustration with the handling of large-scale government projects. Infrastructure is a sector where taxpayers expect both efficiency and accountability, given the significant sums of money involved.

While supporters of the Hal-Far racetrack argue that it will finally provide a safe and regulated environment for motorsport enthusiasts, detractors insist that the end does not justify the means. They argue that regardless of the project’s merits, the manner in which contracts are awarded must respect legal requirements and basic principles of good governance.

The importance of oversight and transparency

Calls for investigations by the Auditor General reflect the growing demand for stronger oversight. Transparency International and other watchdog organizations have long argued that public procurement is one of the government functions most vulnerable to irregularities.

Independent audits not only assess the legality of procurement decisions but also evaluate whether public projects are delivering value for money. This oversight is essential to maintaining trust in public institutions, especially when projects involve significant financial commitments.

Looking ahead

The Hal-Far racetrack case and the Ras Hanzir quay contracts are likely to continue fueling debate in Malta’s political and civic landscape. Whether the Auditor General launches a full investigation remains to be seen, but the issues raised have already cast a spotlight on Infrastructure Malta’s operations.

As the government continues to invest heavily in infrastructure, ensuring transparent procurement processes will be vital. Citizens and watchdog groups will be watching closely to see if greater safeguards are implemented and whether future projects will be handled with stronger adherence to both the letter and spirit of the law.

Conclusion

The scrutiny over Infrastructure Malta’s use of direct orders underscores a broader issue that extends beyond a single racetrack or quay project. While infrastructure investment is vital for Malta’s economic and social development, the way contracts are awarded is just as important as the projects themselves. Transparency, accountability, and adherence to established procurement laws are not optional safeguards but fundamental obligations when public funds are involved.

The call for the Auditor General to investigate reflects a growing insistence from political representatives and civil society for greater oversight in how taxpayer money is managed. Regardless of the eventual findings, this case highlights the urgent need for stronger governance structures to ensure that large-scale contracts are awarded fairly, competitively, and with the public interest at heart.

Only by maintaining robust checks and balances can institutions such as Infrastructure Malta sustain public trust and demonstrate that infrastructure development serves not only the economy but also the principles of good governance.

FAQs

What is the Hal-Far racetrack project?
It is a long-awaited motorsport facility in Hal-Far, awarded through a €6 million direct order to Elbros, intended to provide a safe and regulated venue for racing enthusiasts.

Why has the racetrack project raised concerns?
The project’s cost rose from an internal estimate of €2 million to €6 million, and critics argue that the contract should have been subject to an open tender rather than a direct order.

Who is Carmel Cacopardo?
He is the Deputy Leader of ADPD – The Green Party, who has called on the Auditor General to investigate Infrastructure Malta’s use of direct orders.

What is a direct order in public procurement?
It is a contract awarded without a public call for tenders, legally permitted only in exceptional cases, such as emergencies or highly specialized services.

Why is the Auditor General being asked to investigate?
The Auditor General has the authority to examine whether procurement rules have been followed and whether public money is being used effectively and lawfully.

What other projects are under scrutiny?
Approximately €10 million in contracts for works at Ras Hanzir, including barge rentals from Bezzina Maritime, are among those cited as controversial.

Who is Steve Ellul?
He is the CEO of Infrastructure Malta, overseeing the agency’s projects, and has faced public questions regarding procurement practices under his leadership.

What is Chris Bonett’s role?
He is the Minister for Transport, responsible for Infrastructure Malta. He is also linked to Paola, the electoral district where some of the questioned projects are located.

What does EU law say about procurement?
EU directives require transparency, open competition, and equal treatment in public procurement, with direct orders allowed only in limited circumstances.

Why is public trust important in this case?
Citizens expect taxpayer money to be used responsibly. If procurement processes lack transparency, trust in public institutions and political accountability can be undermined.