Government Denies Claims Of Tender For Gozo Channel Ferry Private Takeover
Malta’s government has denied that it is exploring issuing a tender to a private operator for the management of the entire Gozo Channel Ferry fleet, its staff and terminals.
Sources told Lovin Malta that a meeting took place on Tuesday morning between the current management and directors were plans over the tender were discussed.
However, the Gozo Ministry denied the claims, insisting that it currently remains committed to ensuring connectivity to the island. The Office of the Prime Minister did not reply to questions sent.
Still, sources insisted that the tender could be published as early as the end of September.
Lovin Malta is informed that the tender could be valued at roughly €50 million. However full details on its duration and other criteria are not as yet known.
Former MP Jason Azzopardi has also made reference to the meeting in a social media post, which has not been denied by any parties.
The ferry is currently the main mode of transportation between the two islands, with fast-ferry services failing to generate the necessary demand to remain viable. The owners of two fast-ferry services have asked the government for assistance.
A tunnel has long been proposed. However, it is yet to materialise, raising major concerns over transferring the only viable state-owned link between the two islands to a private operator
Passing on the Gozo Channel ferries to another private operator marks another stage in the government’s siphoning off state-owned assets to private enterprises.
Given the fact that similar concessions such as the Vitals, AUM and ElectroGas deals have been rife with scandals and corruption allegations the fear is that this latest potential takeover would be any different.
Meanwhile, the Gozo Channel ferries have long faced claims of government and individual ministers have used the company to provide jobs to voters.
In 2017, there were claims that almost a thousand Gozitans were recruited to jobs with the government or subcontracted agencies in the months before the June election. Daphne Caruana Galizia suggested that hundreds were employed through the Gozo Channel.
Figures released by the NSO show that over the election season in 2017, between April and June 2017, public sector full-time employment increased by almost 500 jobs.
Meanwhile, the government’s own financial estimates reveal that Gozo’s public service wage bill shot up 40%, from €19 million in 2013 to €27 million in 2021.
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