The National Audit Office (NAO) has identified inconsistent oversight and governance in the government's leasing of private property, saying the absence of a central framework has led to varying approaches in how public entities plan, procure and manage lease agreements.

A joint audit examining selected leasing arrangements involving the Malta Gaming Authority (MGA), the Ministry for Agriculture, Fisheries and Animal Rights (MAFA) and the Malta Competition and Consumer Affairs Authority (MCCAA) found that, while the leases generally met operational needs, there were shortcomings in planning, procurement procedures and value-for-money assessments.

The report, presented by Auditor General Charles Deguara to Speaker of the House Carmelo Abela, builds on a preliminary review published by the NAO in February 2024 that highlighted the need to strengthen public sector estate management.

The audit found that government entities generally sought to meet legitimate operational requirements and ensure the continued delivery of public services from leased premises.

However, it identified limited assessments of alternative options, insufficient documentation of cost-benefit analyses and inconsistencies in procurement practices, with some leasing arrangements lacking adequate records of evaluation procedures and decision-making.

The NAO also found opportunities to improve contract management, including clearer contractual provisions and better planning of capital investment and refurbishment works.

It concluded that stronger governance arrangements and a more consistent strategic approach were needed to improve transparency, accountability and financial stewardship across the public sector.

The NAO recommended establishing a centralised public sector leasing framework setting clear standards for needs assessments, cost-benefit analyses, procurement procedures, contract management and oversight to ensure public funds are used effectively and efficiently.

The audit examined three case studies, while investigations into a fourth case remain ongoing.