Former Malita chair blasts Minister over political interference

Former Labour MEP Marlene Mizzi has accused Housing Minister Roderick Galdes of improper interference in the operations of Malita Investments, the troubled state-controlled, publicly listed company she chaired until her removal last year.

In a sharply worded statement posted on social media, Mizzi said Galdes had sought to intervene in Malita’s day-to-day management and had maintained overly close relations with contractors working on multimillion-euro state housing projects. She claimed her dismissal in 2024 came only weeks after she confronted the minister about what she described as unacceptable political involvement in a listed entity.

“I was ‘removed’ by Galdes a few weeks after a meeting at his office, where I stood up to him and told him that his interference in the workings of a plc, and his hobnobbing with contractors engaged by the company, were not something I could accept,” she wrote, adding sarcastically that she felt “honoured” to have been sidelined.

Mizzi’s comments come as Malita faces mounting scrutiny over its deteriorating finances, including millions of euros in unpaid bills and severe liquidity pressures.

The revelations follow weeks of reporting by The Shift on the company’s stalled €44mn housing development in Hal-Farrug, Luqa, where contractors have halted works due to long-overdue payments and have initiated legal action in an effort to recoup outstanding amounts.

According to public filings, Malita only formally notified the market of its cash-flow difficulties after The Shift highlighted the scale of the problem – a delay that raises potential questions over compliance with disclosure obligations set by the Malta Financial Services Authority.

Since Mizzi’s replacement by 32-year-old inexperienced lawyer Johann Farrugia, Malita has also seen the resignation of both its chief executive and chief financial officer, deepening governance concerns at one of the government’s most prominent investment vehicles.

The new Chairman is now attempting to stabilise the company amid the escalating financial and legal pressures. So far, attempts by Galdes to obtain fresh funds from the exchequer have been blocked by Finance Minister Clyde Caruana.

Minister Galdes has so far declined to assume political responsibility for the situation, telling journalists he was “not worried” about Malita’s position despite its inability to settle debts with contractors.

Prime Minister Robert Abela has also remained silent on the matter and has taken no action with regard to the minister’s involvement in the company’s affairs. The Shift is informed that Abela was made aware of Minister Galdes’s behaviour for many months but failed to act.