Unaccounted use of public funds by ‘Super CEO’ at MCC

An audit of the use of public funds at the Mediterranean Conference Centre (MCC) by the National Audit Office (NAO) found a total disregard for good governance procedures, the institutionalisation of habitual overtime for many employees, and a steady stream of direct orders.

The MCC is managed by Pierre Fenech, a political appointee embroiled in a series of scandals through his double role as CEO of the Institute for Tourism Studies. Fenech was dubbed ‘the Super CEO’ for these two CEO positions he holds within the Tourism Ministry.

He was also responsible for drawing up a fake consultancy contract with Labour MP Rosianne Cutajar.

With a staff of 36, mostly security and maintenance officers, the NAO found that the MCC was managed through the habitual use of overtime, which needed to be accounted for and approved by the ministry’s permanent secretary.

It is calculated that the 18 security staff members were paid an additional €10,000 each in overtime in 2023. In some instances, this was more than their salary.

“Total overtime paid to two employees in 2023 amounted to €20,522 and €13,528, respectively,” the audit noted.

The procurement of goods and services at the MCC was also found to be very problematic with a lack of proper use and efficiency of public funds.

While direct orders, mostly signed by Pierre Fenech, became the ‘norm’ at the MCC, the NAO encountered instances where rules were circumvented through contract splitting to remain under the obligatory threshold requiring a public call.

An agreement was signed with an unnamed company for the engineering and refurbishment of MCC. The agreement had no termination date. The company was paid a raft of direct orders of almost €300,000.

The same happened when procuring various services related to consultants, lifts, fire protection, air conditioning, and a sound and vision system.

The double role played by Pierre Fenech as CEO of the ITS and the MCC has been the focus of press reports and parliamentary questions. However, former tourism minister Clayton Bartolo had defended his appointee.

Last year, Fenech was paid €122,000 for his double role.

Fenech was also found to have taken his wife, Romina a government appointee at the Housing Authority, on a free cruise offered by an ITS client. Touring the Mediterranean, they were accompanied by former PL President Ramona Attard and her partner, who had been promoted to a senior position at the ITS by Fenech.