Malita suffers another resignation, delays AGM amid shareholder anger

The crisis engulfing government-controlled affordable housing company Malita Investments plc deepened further after one of its remaining directors, David Mallia, tendered his resignation, adding to a year marked by boardroom turmoil, financial collapse and mounting governance concerns.

Mallia’s departure leaves even fewer directors in place following a succession of resignations and internal disputes that have plagued the company over the past year.

According to a company announcement, Mallia resigned for “personal reasons”. He represented minority shareholders rather than the government.

Meanwhile, Malita has postponed its annual general meeting (AGM) until the end of July, a move that has sparked criticism among shareholders and industry insiders, who view the decision as an attempt to minimise scrutiny of the company’s deteriorating financial position.

Traditionally, Malita has held its AGM shortly after publishing its annual financial statements. However, despite releasing its 2025 accounts at the end of April, the company has delayed the meeting by several months. Sources familiar with the situation described the postponement as a deliberate effort to discourage attendance by minority shareholders and investors by scheduling the meeting in the middle of the summer period.

The AGM is expected to be particularly contentious following another disastrous year for the company, which was once marketed as a stable investment vehicle offering consistent returns.

According to its latest financial statements, Malita recorded an operating loss of more than €2.5 million in 2025, a dramatic reversal from the profit of over €10 million reported a year earlier.

As a result, shareholders will receive no dividend for the second consecutive year.

Small investors, many of whom purchased shares on the promise of reliable annual income, have instead seen their investments undermined by what has been described as years of mismanagement, poor governance and political interference.

The financial deterioration has also exposed serious problems within the company’s flagship social housing programme.

Housing projects in Ħal Farruġ, Luqa, Kirkop and Bormla have remained stalled for months after funds ran out, despite repeated government promises that the developments would provide homes for vulnerable families.

In Bormla, prospective tenants had already been informed by former housing minister Roderick Galdes before the 2022 general elections that they would be allocated apartments. Four years later, the project remains unfinished.

Malita recently disclosed that it has obtained a sanction letter from Bank of Valletta and is close to securing a multi-million-euro loan. Sources said the financing is expected to require government guarantees, raising questions about potential state aid implications.

The company’s dependence on fresh borrowing has further highlighted the extent of its financial difficulties.

Former chairperson Marlene Mizzi publicly accused Galdes of interfering in the company’s operations and maintaining close relationships with contractors involved in the social housing projects. Despite the seriousness of those allegations, no comprehensive investigation was ever carried out.

Further controversy emerged when reports revealed that Galdes later purchased property from one of the contractors linked to the projects at below-market prices.