Minority shareholders to pay the price as Malita posts losses and seeks loan

Minority shareholders in Malita Investments plc are once again bearing the brunt of the company’s deteriorating financial position and mismanagement, with no dividend to be issued for a second consecutive year following a sharp reversal in performance.

According to the company’s latest financial statements for 2025, Malita registered an operating loss exceeding €2.5 million, a stark contrast to the more than €10 million profit recorded the previous year.

Small investors, many attracted by the promise of steady annual returns, have instead been left absorbing the fallout from mounting losses, sustained mismanagement and political interference.

The financial collapse comes against a backdrop of stalled social housing projects and a growing reliance on external financing.

Through a company announcement, Malita has confirmed that it is close to securing a new multi-million-euro loan after obtaining a “sanction letter” from a financial institution, signalling that approval is imminent.

Sources within the Finance Ministry indicated that the financing could involve Bank of Valletta and may require government guarantees, raising concerns about potential state aid.

Construction across key sites in Ħal Farruġ, Luqa, Kirkop and Bormla has been at a standstill for months after funds ran dry, leaving projects originally promised years ago incomplete. The developments were intended to provide housing for vulnerable families.

In Bormla, prospective tenants had already been personally informed by former minister Roderick Galdes before the 2022 elections that they would receive apartments. Those units remain unfinished.

Malita, now chaired by Roderick Psaila, acknowledged it is still dependent on lender approval to restart works, underscoring the company’s fragile financial position.

Governance concerns continue to shadow the company.

Former chairwoman Marlene Mizzi had accused Galdes, now barred from contesting elections, of interfering in operations and maintaining close ties with contractors involved in the projects. The allegations were never fully investigated, despite later reports that the former minister purchased property from the same contractor at below-market prices.

The situation escalated further when it emerged that Malita’s board approved a 16% increase in directors’ remuneration during the height of its liquidity crisis.

Responsibility for the sector has since been transferred to Parliamentary Secretary Andy Ellul, amid mounting pressure to resolve the funding impasse.

For shareholders, however, the immediate reality remains unchanged: losses have wiped out returns, dividends have disappeared, and the cost of failure continues to fall on their investment and hard-earned cash.