Official removed from Housing agency given €130,000 TM contract

A former government official with a controversial track record has been re-engaged on the public payroll, this time through a lucrative consultancy role at Transport Malta.

Jesmond Muscat, from Dingli, who previously held senior positions across multiple government entities, has been awarded a €130,000 direct order to serve as a consultant to the transport regulator over three years.

The engagement was recently announced in the Government Gazette.

The contract was issued under the leadership of Kurt Farrugia, raising questions given Muscat’s past record in public office.

Muscat previously held the post of Deputy Chief Officer within the Authority and worked in other senior government roles, including positions at the Planning Authority and within entities responsible for social housing and construction.

Muscat first hit the headlines in 2017 when he was serving as CEO of a government company managing social housing projects.

The entity, initially known as the Housing Projects Management Unit and later renamed Social Projects Management, fell under the political responsibility of then Minister Michael Farrugia.

Court records show that Muscat’s appointment to the role followed a series of irregular administrative decisions. Initially engaged as a project manager, he was subsequently elevated to acting CEO by the company’s chairman, Paul Mifsud, despite governance gaps in the appointment process.

In 2017, following a cabinet reshuffle that saw responsibility for the housing sector transferred to Roderick Galdes, Muscat’s position was abruptly terminated.

The day after his removal, Muscat issued a €55,000 cheque to himself from company funds, equivalent to a year’s salary, claiming it as compensation linked to a contractual clause. The payment was made without authorisation and on a public holiday.

He later returned the funds after the irregularity came to light.

Despite the episode, Muscat continued to occupy senior public roles.

In 2022, he was appointed CEO of the Building and Construction Authority, a position he held until 2024, when he stepped down amid growing scrutiny on the sector.

His latest consultancy contract with Transport Malta now places him, once again, within a key regulatory Authority.