Malita announces possible Christmas Eve lifeline

Malita Investments, the government-owned company responsible for a series of delayed affordable housing projects, said on Christmas Eve that it may have secured a temporary financial lifeline, months after running out of cash and halting construction works.

In a brief statement to the market, the publicly listed company said it expected to be in a position to resume work on housing developments in Ħal Farruġ, Luqa, Kirkop and Bormla. Malita did not provide details of the arrangement, describing it only as a temporary solution.

Finance Ministry sources said the financing could involve a new loan amounting to several million euros, potentially provided by Bank of Valletta. The loan agreement has not yet been finalised and remains subject to guarantees and changes to Malita’s internal structure, including a reorganisation of its operations.

The announcement followed a board decision, though most directors have yet to accept responsibility for the financial difficulties that left the company unable to complete projects originally due several years ago.

While former chairman Johann Farrugia resigned earlier this year following allegations by his predecessor that housing minister Roderick Galdes had interfered in Malita’s operations, other government-appointed directors – including GWU president Victor Carachi – have remained in place.

The Shift has revealed that, at the height of Malita’s liquidity crisis, board members approved a 16% increase in their own remuneration. It remains unclear whether that decision has since been reversed.

Malita is also facing legal action from Calibre Industries, which had won a multimillion-euro tender for finishing works at the Bormla project, scheduled for completion in 2022.

The contract was later discontinued and awarded instead to Next Construction, owned by Gozo-based rogue contractors Joseph Portelli and Mark Agius, known as Ta’ Dirjanu.

The company has declined to explain the circumstances surrounding the change, whether public procurement rules were followed, or the value of the new agreement.

Portelli and Agius have previously conducted private business with Minister Galdes, including the sale of a Gozo penthouse acquired at a price well below market value.

The governance of Malita has been under sustained scrutiny, with former chair and ex-Labour MEP Marlene Mizzi accusing Galdes of “hobnobbing” with contractors and interfering in the company’s management.

In 2024, Prime Minister Robert Abela transferred responsibility for Malita from finance minister Clyde Caruana to Galdes, a move that consolidated oversight of the company within the housing ministry.

Galdes has built a substantial private property portfolio since joining the Labour Government executive, engaging in several real estate private transactions while serving as housing minister.

Robert Abela has repeatedly refused to sack the Minister and insisted that Galdes continues to enjoy his full confidence.