A report has found that there were three potential conflicts of interest within the adjudicating committee for casino licence bidders, The Malta Independent can reveal.

The report was drawn up following the dismissal of the adjudicating committee by Economy Minister Chris Cardona.

The report, seen by this newsroom, shows that one of the main conflicts of interest involves Jesmond Pace, who was a member of the defunct board. The conflict lies in the fact that he sat on the Lotteries and Gaming Authority board at a time when the Dragonara Casino had been awarded a 10-year license to operate back in 2010.  

Another potential conflicting role was that of Kevin James Fenech who also sat on the adjudicating board. The report states that Mr Fenech is the managing director of Fenci Consulting Ltd - a management consultancy and business advisory firm. The website of Fenci states that it gives, on an ongoing basis, advice to Malta International Airport's top management about matters concerning business strategy.

The potential conflict of interest lies in the fact that the Bianchi family have a significant share in Dragonara Gaming Ltd. The Bianchis also own a small share in Malta International Airport. Mark and Raphael Bianchi own Toss A Coin Ltd, which with Pinnacle Gaming Group Ltd, own the majority of Dragonara Gaming Ltd through another company named Peninsula Gaming Group Ltd of which Mark Bianchi is also a director.

The report found a third potential conflict of interest, Mr Fenech's wife, Roberta Fenech Gauci, who is his business partner as well. Although she did not sit on the adjudicating board, she formed part of the LGA board together with Jesmond Pace at the time the license was granted to Dragonara, back in 2010. Ms Fenech Gauci sat on the LGA board between 2009 and 2013.

Yesterday in parliament, Economy Minister Chris Cardona said that negotiations tied to the concession of a casino licence can continue after the government was "proved right" by the courts.

Earlier this week, the court lifted a warrant of prohibitory injunction it had previously put into place at the request of Dragonara Gaming Ltd, which claimed that the selection process was flawed. Eden Leisure Ltd was chosen as the preferred bidder in a process led by the Privitasation Unit. Dragonara Gaming came in second place. The government had said it was ready to negotiate for two concessions to be awarded, including the Dragonara.

Speaking during the debate on the financial estimates of the Economy Ministry, Dr Cardona said the government had absolute faith in the courts and that was why it did not comment before a decision was taken. Now that the government has been proved right it can resume negotiations with Eden Leisure Group to issue a casino concession. Dr Cardona justified his dismissal of the technical committee. He had done this because at least one of the members was part of a company that had previously given consultancy services to one of the bidders. He also said that the financial offer was not the determining factor.

The Opposition had claimed that Minister Cardona had interfered in the bidding process when he halted the process. Dr Cardona always stuck to his claim that he halted the process in good faith after being alerted on a number of potential conflicts of interest.