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News | Sunday, 01 November 2009

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Dalli says ministry tried to ‘pass the buck’ over casino’s split-licence

Social Policy Minister John Dalli has refuted insinuations of aiding an arrangement for casino owner George Fenech, chairman of Tumas Group, to secure the operation of two casinos under one licence.
MaltaToday understands that the operation of the Oracle casino and Portomaso casino – both run by Fenech’s Tomino Ltd – are governed by a ‘split-licence’.
This same information was reproduced in an article in the Independent on Sunday by Noel Grima, in the aftermath of Tonio Fenech’s ill-fated trip aboard George Fenech’s private jet.
Dalli accused “individuals in the finance ministry and/or LGA” (Lotteries and Gaming Authority), of leaking the information to Grima “in a puerile and cowardly manner… to pass the buck on to someone else.”
MaltaToday has learnt that the split-licence covers both casinos by allowing Tomino to use its hotel-casino licence for the Oracle, which it obtained in 1998, for the casino at Portomaso.
An increase in the ratio of gaming machines to gaming tables from 10/1 to 15/1, part of the change in government policy, is also understood to have allowed a greater number of casino tables to be introduced under the same casino licence.
But the licence was granted in 2006, when the finance ministry was under the stewardship of Lawrence Gonzi, with Fenech as his parliamentary secretary.
Finance Minister Tonio Fenech has not explained the reasons behind the granting of this split-licence, to understand why the Portomaso casino’s licence was not the subject of a public competition.
Instead, a spokesperson for Fenech said the concession was established by a letter of intent issued on 9 March 2004 by the finance ministry – then under the stewardship of John Dalli – without saying that the actual licence was negotiated and issued in 2006.
Dalli said he signed the letter of intent to set the policy of allocating casino licences to hotels, but added that the letter was “not a licence and only the basis for further discussions and negotiations.”
“Having said that, if I had remained minister of finance I would have come forward with issuing the license, as I believe that that was the correct policy,” Dalli said.
Casino licences are usually opened to 10-year concessions, such as the Dragonara casino, which is currently the subject of a public tender.


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