Dragonara Casino Ltd, one of the company's which bid for the casino licence, has strongly hit back at the report drawn up following the dismissal of the adjudicating committee by Economy Minister Chris Cardona, which found three potential conflicts of interest.

Dragonara firmly rejected the report's conclusions, describing them as pathetic excuses and less than credible attempts by the Minister to legitimise his interference and direct intervention to dismiss the technical committee which was assigned to evaluate the best proponents.

On Saturday, The Malta Independent revealed the report's conclusions tied to the adjudicating board which was set up to adjudicate the process.

In a right of reply following our story and Minister Cardona's declaration in parliament, Dragonara Gaming Ltd said that the Minister's claims are another clear confirmation of the vitiated adjudication process with regard to the issue of a new casino concession licence in Malta.

"This latest twist to this farce is in fact outright confirmation that the evaluation process was a circus disguised as an official procedure intended solely to legitimise a foregone conclusion which the government wanted to arrive at from the very start of the process," the company said.

All members of the committee were 'hand-picked'

Dragonara Gaming said "the members of the same technical committee were appointed by the Ministry and/or the Privatisation unit itself.

"We assume this was done after some thought and deliberation. It is therefore baffling and not credible that the Minister had to dismiss this technical committee due to the fact that, allegedly, he had second thoughts on the suitability of some of the members on that committee.

"Moreover, from court proceedings it transpired that all the members forming part of that technical committee were hand-picked by the Ministry and the Privatisation Unit had duly signed a declaration stating that they had no conflicts of interest.

"What must be noted and is of particular significance is the timing of the Minister's personal intervention. It is now public knowledge that the Valencia report had been prepared, approved and signed off prior to the Minister's intervention.

"It must follow that the Minister only intervened and disbanded the committee because he somehow got to know that the clear conclusions reached by the committee were not the ones his government wanted.

 "The concession granted for the Dragonara Casino in 2010 was on the basis of a 'best and final offer 'submitted in sealed envelopes, opened and read in public in the presence of government officials".

"The lamest of smoke screens is the declaration by Minister Cardona that one of the members of the committee owns a management consultancy firm which provides services to Malta International Airport, in which Bianchi family members indirectly through two holding companies own a shareholding.

No entitlement to MIA management

"The Bianchi family members have no entitlement to be involved in the management of MIA and are in the same position as the other 6,500 shareholders of MIA whose equity is quoted on the Malta Stock Exchange.

"What is ironic is that government itself holds 20% of the shareholding of MIA and has a guaranteed seat on the board, making the Minister's assertion of conflict of interest on the part of members of the Bianchi family, were it not such a serious matter, a joke in bad taste.

"The seriousness of the allegation is further compounded by the fact that the Minister is now putting in doubt the reputation of one of the leading publicly quoted companies on the island, with an impeccable track record on its corporate governance, from which the government could indeed learn many lessons.

Contrary to what the Minister asserted with such conviction, the government was not proved right in court. Minister Cardona, being a seasoned lawyer, knows very well that this is not the case and to say so is yet another attempt to misguide. In essence the court turned down Dragonara Gaming Limited's request for an injunction because the court did not find the requested injunction to be "necessary" to protect its right to be dealt with fairly. However the court did find that Dragonara has a right to protect and it made it quite clear that the government has no absolution. This is a clear message and warning to government. What clearer message does the government need to be convinced to act in better faith?"

Dragonara Gaming Limited said it is reserving all its rights at law and again appealed to the government to do what is right to ensure that the final outcome of this process is fair, transparent and equitable.