Water Services Corporation moves to privatise staff recruitment

The Water Services Corporation (WSC), which operates under the political remit of Minister Miriam Dalli, is set to privatise its staff recruitment process—a significant shift from long-established public sector practices intended to uphold transparency and accountability.

In a tender issued in April, the WSC announced its intention to outsource the recruitment of employees, including management and professional staff, to a private human resources agency. The selected contractor will be tasked with staff selection, salary payments, and disciplinary procedures. However, the WSC will retain the final authority to approve hires within the public sector.

Valued at over €18 million across three years, the contract forms part of WSC’s plans to expand its workforce—currently numbering 1,100—by between 53 and 151 employees over the contract’s duration.

Two companies have submitted bids for the tender. AGV HR Ltd, a firm registered only last year and controlled by Frank Cachia, President of Marsaxlokk FC, and his son, submitted the lowest offer. The competing bid came from OZO Group, headed by founder and chairman Mario Muscat, and a frequent recipient of government contracts.

Trade unions, including the General Workers Union (GWU), which represents WSC employees, have not publicly responded to the move, despite the apparent breach of recruitment protocols typically governed by a collective agreement.

This is not the first instance of a government entity outsourcing its human resources functions. Wasteserv, another state agency, has long relied on third-party contractors for nearly its entire workforce. The recruitment process has faced criticism for a lack of transparency and susceptibility to political interference.

It is widely reported that ministers and MPs have used such systems to recommend preferred candidates. When questioned about recruitment practices or allegations of discrimination, agencies often deflect accountability by referring queries to the private contractors.

One such case involved Pearl Agius, a former One TV journalist who was appointed as a lawyer in the CEO’s office at Wasteserv. CEO Richard Bilocca has refused to release details of her employment contract, citing the involvement of a third-party contractor.

The Shift has received multiple reports of politically recommended individuals securing positions through similar arrangements. Other government bodies, such as the Cleansing Department, have also adopted this recruitment model.