A possible serious conflict of interest has arisen in Malta involving the privatisation of the Manoel Island Yacht Yard (MIYY) by the MIDI led consortium. At the centre of the conflict is Malta's Maritime Industry regulator and chairman of Transport Malta, Mark Portelli.

Portelli's conflicts come from the fact that he is a shareholder of the company that was awarded the 30-year concession for MIYY and he is also a director of MIYY Ltd, a company formed late last year. In addition his business interests include links to some of the bidders in the current marina privatisation programme.

In his defence the Maltese Finance Ministry, already criticised for the cancelled privation of Malta Superyacht Services, stated that Portelli's involvement "is completely irrelevant" as the Malta Maritime Authority, now part of Transport Malta, does not regulate MIYY. This position is also raising question marks over other directors in the MIDI consortium and any conflicting links there may be.

For the Maltese government this just poses another problem in respect of the Malta Shipyards privatisation though this one is anticipated to go away. The MSYS position may be different depending on when the yard is actually privatised or third time lucky as some observers are saying. With Malta's keen ambition to develop the island as a superyacht hub, these incidents detract from that aim and have potential to loose the island business. It also means that the upcoming marina privatisations will also be closely monitored.


Superyacht Business / David Robinson, 24 February 2010