Recommendations not implemented: Shipyard Concessions - Ombudsman investigation finds lack of oversight and transparency

Recommendations not implemented: Shipyard Concessions - Ombudsman investigation finds lack of oversight and transparency

Published November 07, 2025

The complaint

A consortium of NGOs and private individuals submitted a complaint to the Ombudsman concerning two long-term shipyard concessions granted by Government in 2010 and 2011 to a private group of companies, as Emphyteuta. The complainants expressed concern about the lack of clarity and transparency surrounding Government’s monitoring of the concession terms.

The investigation

The Ombudsman sought to establish which public authority carried responsibility for conducting the annual compliance certification required under the concession agreements, whether a compliance review had been completed, whether its findings were intended for publication. To determine these points, the Ombudsman engaged extensively with MIMCOL, the Ministry responsible for Economy, the Lands Authority, the Environment and Resources Authority (ERA) andthe Office of the Prime Minister The concession documents were also examined in detail.

Facts and findings

The investigation found that while the concession agreements clearly oblige Government, or an entity delegated by Government, to annually certify that the Emphyteuta is complying with its contractual and regulatory obligations, no ministry or public entity was, formally designated to carry out this duty. Moreover, in terms of the agreements Government retained the right to request a condition report every two years. No evidence was found as to whether this right has been exercised consistently over the years.

MIMCOL confirmed that it had been assigned an ad hoc review by the Ministry responsible for Economy, which it completed in August 2020. It clarified that this was a one-time assignment and that it bore no ongoing responsibility for the required annual certification. MIMCOL also stated that it did not have the authority to publish the results of the review because these belonged to Government.

The Lands Authority, which by law administers all Government land, did not initially confirm whether it had responsibility for the concessions. When it eventually provided feedback, it stated that it lacked the specialised expertise to undertake comprehensive compliance assessments and could only act when formally notified by the specialised regulators of breaches within their respective areas of competence. The Authority also confirmed that, up to mid-2023, no formal communication channels existed between it and other regulators, although discussions were underway to improve this situation.

The investigation further revealed that regulatory monitoring was fragmented, with ERA, Transport Malta, the Regulator for Energy and Water Services and other specialised bodies operating independently. There was no coordinated mechanism to consolidate their findings into the annual compliance certification envisaged in the concession agreements. This fragmentation contributed to significant uncertainty as to whether the Emphyteuta’s overall obligations were being monitored effectively.

The Ombudsman noted that reliance on Freedom of Information requests as the primary means for the public to access information placed a significant burden on complainants and members of the public in general as the lack of clarity regarding which authority held which documentation compounds the difficulty in obtaining information and consequently hindered the requests’ effectiveness.  In this context, this raised broader concerns about transparency and accountability in the management of these public assets.

Conclusions and recommendations

The Ombudsman concluded that oversight of the shipyard concessions had significant weaknesses. Responsibility for the concessions was unclear, coordination among regulators was limited, and there was no structured system ensuring that the required annual certifications and condition reports were being carried out. This lack of clarity hindered accountability and made it difficult for the public to obtain information about how valuable public land was being managed.

The Ombudsman recommended that Government clearly identify and publicly announce which ministry, or entity holds overall responsibility for the concessions, and that it also designates the entity responsible for the annual compliance certification. He also recommended that if responsibility for the concessions is reassigned in the future, this should be communicated publicly and without delay.

The Ombudsman further recommended that, information on whether a) the annual certification was carried out, b) a condition report was requested and submitted, and c) any other action taken by Government under the concessions for the purposes of carrying proper oversight over the Emphyteuta should be published every year without the need for Freedom of Information requests.

These measures aim to ensure appropriate and effective supervision and transparent management of the shipyard concessions by Government, and the strengthening of public trust in the said management.

Outcome

Following the Ombudsman’s Interim Report (May 2024) and Final Opinion (September 2024), the government accepted that the Lands Authority holds overall responsibility for the shipyard concessions. Moreover, ERA, Transport Malta, and the Department for Industrial and Employment Relations were formally delegated to assist the Lands Authority with compliance obligations as set out the concessions. However, the Ombudsman’s transparency recommendations were not implemented, namely, the routine publication of information on whether:

                                     i.          the annual certification was carried out;

                                    ii.          any condition report was requested and delivered; and

                                  iii.          any other oversight action was taken

The public administration insisted instead that such information should only be available via Freedom of Information requests.

In line with Article 22(4) of the Ombudsman Act, the Ombudsman escalated the matter to the Prime Minister on 2 October 2025. As no remedial action followed, the Ombudsman sent the case to the Speaker of the House for tabling in Parliament on 3 November 2025.