S.L. 455.12 Art. 9Monitoring and enforcement.

(1) At the end of every calendar year, the sports organisation, or the third-party operator, being the party that is managing the commercial area, shall send to the Commission a report, called the ‘Annual Report’, containing the following:

(a) audited financial statements on the financial performance of the commercial area, and the financial benefit received by the sports organisation, in the current year, including a summary describing the yearly turnover, employment figures and monetary equivalent benefits to the sports organisation;

(b) a budget with clear estimates as to expected financial targets, revenues and costs, and expected financial benefit to be received by the sports organisation, in the following year;

(c) an administrative report signed by all members of the sports organisation detailing the enhancement of the sports area in the past year through funds received from the commercial area. Such enhancement need not be only in the infrastructure of the sports facility but also may include upgrades in the level of sports technical staff.

(2) Upon receipt of the Annual Report the Commission shall forward a copy of such report to SportMalta and to the Lands Authority.

(3) Both SportMalta or the Commission may at any time during the year request interim reports on the financial or infrastructural performance of the sports facility in respect of any time during the year whenever they feel that targets established with the sports organisation or the third-party operator at the beginning of the year are not being reached.

(3a) At five (5) year intervals starting one (1) year following the commencement of commercial activities, the turnover for a five

(5) year period shall be reckoned and should this sum exceed that indicated in the business plan, the profit margin on the said excess turnover shall be divided as follows:

(i) thirty percent (30%) between the third-party developer and, or operator,

(ii) forty percent (40%) to the sports organisation; and

(iii) thirty percent (30%) to SportMalta.

Such third-party developer and, or operator shall maintain separate accounts for their activities.

(4) Should the sports organisation, or the third-party operator, not submit the Annual Report by the end of January following the end of the year when the report was due then the sports organisation, or the third-party operator, shall pay an administrative penalty amounting to ten per cent (10%) of the ground rent for the commercial area as established in the deed, following written notice issued by the Commission after the deadline has elapsed:

Provided that if the sports organisation, or the third-party operator, does not submit the Annual Report by the end of the following February, then SportMalta, may suspend the permission to carry out commercial activity granted to the sports organisation in its sports facility granted by the Commission according to regulation 4.

(4a) SportMalta shall also suspend the permission to carry out commercial activity granted to the sports organization in its sports facility granted by the Commission in accordance with regulation 4 if the Annual Report requested in sub-regulation (1) does not confirm that the commercial undertaking has satisfied:

(a) at least twenty-five per cent (25%) of each one of its targets in accordance with regulation 4(4)(a) in its first year of commercial operations;

(b) at least fifty per cent (50%) of each one of its targets in accordance with regulation 4(4)(a) by its third (3) year of commercial operations;

(c) at least seventy-five per cent (75%) of each one of its targets in accordance with regulation 4(4)(a) from its fifth(5) year onwards of commercial operations.

(5) When it is established that the sports organisation, or the third-party operator, managing the commercial area, is:

(a) engaging in any criminal activity within the commercial area; or is tolerating such activity; or

(b) engaging in any commercial activity for which the Commission had not granted permission according to regulation 4; or

(c) declared bankrupt; or

(d) in breach of any regulation of these regulations, or of any condition made by the Commission when permission to carry out commercial activity was granted according to regulation 4 or any modification thereof; or

(e) repeatedly not paying the ground-rent on the sports facility or the rates payable due on the commercial area on time, then SportMalta shall suspend the permission to carry out commercial activity granted to the sports organisation in its sports facility granted by the Commission according to regulation 4.

(6) Whenever SportMalta suspends the permission to carry out commercial activity granted to a sports organisation in its sports facility according to sub-regulations (4) or (5) above, SportMalta shall immediately notify the Commission and the Lands Authority of such decision.

(7) Whenever the Commission receives notification under sub-regulation (4a) and, or (5) it shall investigate the matter, and within fifteen (15) days take a decision, in writing, on whether to lift the suspension, prolong the suspension until conditions for the lifting of the suspension made by the Commission to the sports organisation or the third-party operator, as the case may be, are met, or withdraw definitively the permission to carry out commercial activity within the sports facility granted to the sports organisation under regulation 4 and the Government reserves the right to undertake such commercial activity with another third party following the issuance of a request for proposals in accordance with regulation 7.

(8) Decisions taken by the Commission to prolong a suspension, or withdraw permission definitively may be appealed by the sports organisation or third-party operator, as the case may be, within seven (7) days from the decision of the Commission, by written appeal to the Appeals Panel.

(9) The Appeals Panel shall take a decision on such an appeal within sixty (60) days from notification of the appeal to all parties. The decision of the Appeals Panel shall be final and binding.

(10) Any suspension of the permission to carry out commercial activity decided upon by SportMalta or the Commission under this regulation may be lifted by the body that has taken the decision to issue the suspension, whenever it is satisfied that the sports organisation or the third-party operator, as the case may be, has cured its default.