Malita board granted itself 16% pay rise as housing vehicle hit liquidity crunch

Malta’s state-backed affordable housing vehicle, Malita Investments plc, awarded its directors an average 16 per cent increase in annual honoraria even as the company depleted its cash reserves and halted several social housing projects.

According to disclosures reviewed by The Shift, the board approved the rises in 2024 and early 2025, at the same time that Malita started recording acute liquidity pressures, suspended dividend payments and began seeking emergency financing from its banks.

The developments come amid escalating governance concerns, including the decision by chairman Johan Farrugia to appoint himself executive chairman in April, despite the presence of a full-time chief executive, architect Amanda Desira, whose annual remuneration exceeds €100,000. The company has yet to publish Farrugia’s remuneration package as executive chairman.

Farrugia, a lawyer and former partner at DF Advocates who established his own advisory boutique Peak Point Advisory in Qormi – Housing Minister Roderick Galdes’s constituency – declined to respond to questions from The Shift on the rationale for his self-promotion or potential conflicts of interest. He also refused to release his engagement contract.

Farrugia resigned abruptly shortly after former Labour MEP and ex-Malita chair Marlene Mizzi publicly accused Minister Galdes of intervening in the company’s management and cultivating close links with contractors handling multi-million-euro projects.

Despite Malita’s tightening finances, the board – comprising government appointees Victor Carachi, Tania Brown, Miguel Borg and Desiree Cassar – unanimously endorsed Farrugia’s elevation to executive chairman.

Remuneration disclosures show that several directors received sizeable pay increases.

The largest rise went to Miguel Borg, a government-appointed director and former Bank of Valletta chief risk officer, who stepped down from the bank in contentious circumstances. Borg received €20,833 in 2024, a year-on-year increase of 59 per cent.

Victor Carachi, president of the General Workers Union and long-standing government appointee across multiple boards and consultancies, received close to €16,000, up 42 per cent. Carachi continued to serve as the leader of the workers’ union while serving the government on various payrolls.

Tania Brown, a former chief of staff to ex-finance minister Edward Scicluna – himself under indictment in relation to the fraudulent hospitals concession – collected nearly €13,000. Brown has since been appointed CEO of the state agency Trade Malta but has retained her seat on Malita’s board. The Malta Chamber of Commerce is a partner in Trade Malta.

Malita Investments, in which 20 per cent of shares are held by private investors and traded on the Malta Stock Exchange, is now attempting to secure fresh financing to maintain its operations. The company is understood to be in discussions with its bankers – principally Bank of Valletta – for a new multi-million-euro facility. Government officials are pressuring the bank to extend the credit line, but insiders caution that doing so could violate EU state-aid rules and international banking standards.

The political fallout continues to deepen. Minister Galdes has rejected allegations of interference, while Prime Minister Robert Abela has publicly dismissed Marlene Mizzi’s claims. Nevertheless, both Farrugia and company secretary Albert Cilia have resigned since the accusations surfaced.

Malita remains burdened by millions in outstanding payments to contractors and has paused parts of its social housing programme pending fresh capital.