Unpaid planning fines climb to €16.5 million

Unpaid fines linked to illegal developments in Malta have risen to €16.5 million, underlining the culture of impunity in the construction sector and persistent weaknesses in enforcement by the state.

Figures tabled in parliament by Planning and Gozo Minister Clint Camilleri show that by the end of last year, the Planning Authority (PA) had failed to recover millions of euros in penalties imposed on developers who breached planning regulations.

The fines relate to developments carried out without permits or in violation of approved plans.

While the authority continues to issue enforcement and infringement notices, little has been done to compel compliance or ensure that penalties are paid.

Data requested by Nationalist Party MP Ivan Bartolo reveal that by the end of 2025, the PA had yet to collect fines linked to 2,341 enforcement cases issued since 2013 alone.

Sources familiar with the authority’s records say that hundreds of thousands of euros in additional unpaid fines remain outstanding from cases dating back even earlier.

A significant portion of the unpaid penalties is more than five years old, suggesting limited follow-through by the regulator.

In other European jurisdictions, developers found in breach of planning rules are typically required to regularise violations within a fixed timeframe or face the sealing of their sites. No such mechanism exists in Malta.

Instead, successive legislative changes have been criticised for favouring developers, who are the biggest contributors to fundraising activities of both major political parties, particularly Labour.

Current laws allow construction to continue even when enforcement orders have been issued or when development permits are under appeal in Court. In practice, developers can complete projects and sell properties while legal challenges remain pending or unresolved.

Prime Minister Robert Abela pledged three years ago to amend the law to halt developments under appeal. The proposed reform has yet to materialise, having been bundled with unrelated legislative changes that were opposed by non-governmental organisations, resulting in a legislative stalemate.

Under existing rules, daily fines for illegal development are capped at €50, with a maximum total penalty of €50,000. Once that ceiling is reached, no further fines are imposed, even if the breach persists.

Official statistics show that at least 161 illegal developments have already reached the €50,000 cap and continue to operate. Some cases date back decades and include industrial facilities, batching plants, commercial premises, restaurants and wedding venues.

The figures point to a system that punishes non-compliance lightly while allowing illegal developments to become permanent fixtures — at a growing cost to the public purse and the rule of law.