The fur is still flying over a July decision by the Maltese government to grant a 64-year no-bid license extension to the Dragonara Casino. One outraged competitor called it “a troubling decision made by the government which we believe to be in breach of EU law.”
According to Malta Today, business operators are considering taking legal action over alleged breach of state aid rules.
Despite its approval in the House, Labor government sources allege that the concession was not discussed within the Cabinet, and suggested that Casma Ltd. Chairman Edward Gatt only resigned recently in April to avoid signing the concession.
The 10-year lease was first granted to Dragonara Gaming (DGL) in 2010. The company is co-owned by Johann Schembri and the Bianchi Group. Economy Minister Chris Cardona bypassed the Cabinet and took the extension proposal to the House. There it was approved for the remaining 64 years of the lease that Casma Ltd. has on the surrounding land, and then was approved in Parliament without discussion.
DGL’s first lease was awarded after a competitive bidding process. DGL was obliged to invest €17 million (US$18.8 million) in the property, something the parliamentary motion contends was fulfilled.
Economy Minister Chris Cardona acknowledged that Cabinet-level discussions were confidential. “For the opposition to only take issue of this mutual decision, after themselves voting for it in Parliament, is ironic,” he said.
A rival in the market told said, “There is no doubt that this was no simple extension of the concession. At a concession of 64 years, it would have been attractive enough for the entire entertainment industry to bid for it. There is no doubt this was illegal, at both national and European level.”
Meanwhile, the casino in question has been described as being in a “state of complete neglect.”
