‘Unprecedented’ contract keeps ousted arts council Chair on full pay until 2028

An internal dispute at Malta’s Arts Council has triggered a costly leadership settlement, with taxpayers set to shoulder more than €300,000 over three years following the removal of its veteran Executive Chairman, Albert Marshall.

Marshall, 77, a long-standing Labour Party loyalist and former chief executive of the Labour Party’s ONE TV, was replaced in June by his protégé, Luke Dalli, despite having been granted a fresh three-year contract only six months earlier, in January 2025.

According to internal documents obtained via freedom of information requests, The Shift can reveal that Marshall has kept his full remuneration package until 2028, even though he is no longer Chair.

The scandalous arrangement was approved by Culture Minister Owen Bonnici, acting on instructions from the Office of the Prime Minister (OPM), according to Arts Council sources. Bonnici did not want Dalli to become the executive chair, but was ordered by the OPM to appoint him.

An addendum signed on 17 June by the ministry’s permanent secretary, Kevin Mahoney, reclassified Marshall’s role to “technical expert”. The contract stipulates that he will continue to receive the same salary and benefits accorded to the CEO, with taxpayers forced to foot the bill.

Under the terms of the revised agreement, Marshall will receive an annual basic salary of €63,000, a performance bonus of €9,450, and a series of allowances, including €3,000 for expertise, €6,000 for expenses, and €1,600 for communications. The package also includes a fully paid government car, a full-time driver and other perks. The total cost amounts to around €100,000 per year.

Arts Council insiders described the arrangement as “unprecedented”, adding that Marshall’s new designation does not appear in the organisation’s internal structures and that his presence at the Council has been minimal since June.

“This was a move to keep him quiet,” said one official with knowledge of the discussions. “Marshall was not pleased about having to step aside for Dalli. The deal was designed to avoid further conflict, and the person responsible is Minister Owen Bonnici.”

In addition to the Arts Council contract, Marshall continues to hold a range of other publicly funded roles, including deputy chair of state broadcaster PBS and positions linked to the Malta Film Commission, supplementing his national and foreign pensions. All these appointments fall under the responsibility of Minister Bonnici.

Luke Dalli’s appointment has also drawn scrutiny. The lawyer son of former Labour Minister Helena Dalli, who was recruited and promoted internally at the Arts Council by Marshall, expanded his private legal practice while supposedly working at the Arts Council.

Dalli also forms part of the defence team for disgraced former prime minister Joseph Muscat, facing several criminal charges in court.