MFSA spends €7,000 on milk amid €2 million in direct orders

Malta’s Financial Services Authority (MFSA) appears to be returning to the controversial spending practices that characterised the tenure of its disgraced former chief executive, Joseph Cuschieri, according to insiders and official records.

Data published in the government gazette show that during the last six months of 2025, the regulator issued 61 direct orders worth almost €2 million, often in circumstances where competitive procurement would ordinarily be expected. Direct orders, which bypass standard tendering processes, are intended to be used sparingly. Instead, they appear to have become routine.

MFSA officials familiar with the matter told The Shift that “it is back to square one”, with approvals now being signed off by the authority’s current chief executive, Kenneth Farrugia, who simultaneously heads Malta’s Financial Intelligence Analysis Unit.

The records indicate that many of the services procured – ranging from events management to catering and publicity – could have been sourced through open competition, potentially securing better value for money. In several cases, suppliers were repeatedly awarded work through direct orders, despite the presence of strong market competition.

The spending has attracted particular attention, given the MFSA’s financial position. The regulator reported a €2.7 million loss in 2024, despite receiving millions of euros in government subventions to sustain its operations.

Among the more striking examples is a €7,000 direct order awarded to Mark Borg for the supply of milk.

The MFSA has also continued to allocate substantial sums to publicity. One direct order approved by Farrugia amounted to €39,000 for the publication of an article by the authority in Time magazine.

The largest share of direct-order spending went towards conferences and industry events organised by the MFSA for financial services practitioners.

While the events sector is highly competitive, suppliers were frequently selected without open calls.

Event management company The Event Planner, for instance, received three separate direct orders within six months.

Other beneficiaries included companies with close ties to the governing Labour party, such as Best Team Audio and advertising agency Pure Concepts.

High-end hotels and caterers – including Corinthia, Xara, The Phoenicia and Celebrity Communications – were paid tens of thousands of euros for catering services.

Insiders told The Shift that the pattern of spending has revived concerns about governance and transparency at the regulator, which plays a central role in safeguarding Malta’s financial reputation at a time of heightened international scrutiny.