Government COO managing Robert Abela’s private hotel project during taxpayer-funded work hours

Ray Pellicano, the government-appointed chief operations officer of the newly established Malta Investment and Economic Advisory Agency (MIEA), is carrying out work on Prime Minister Robert Abela’s private boutique hotel project in Gozo during working hours when he is supposed to be performing his taxpayer-funded government duties, The Shift has learned.

Sources close to Pellicano confirmed that the MIEA senior official is routinely allowed to absent himself from his government post to oversee progress on Abela’s hotel development in Xewkija. The agency falls under the responsibility of Economy Minister Silvio Schembri and is headed by CEO Karl Azzopardi

According to multiple sources, verified by The Shift, Pellicano crosses to Gozo at least once a week, and often more frequently, to inspect works and coordinate activities on the prime minister’s private project through an informal arrangement that permits him to be away from his government office.

Questions sent by The Shift to Pellicano, asking who has authorised him to conduct private work during hours paid for by taxpayers, went unanswered.

Pellicano also refused to clarify whether he was receiving private payments from Prime Minister Robert Abela for his role on the project or to provide any documentation showing how he is being remunerated for the work.

His CEO, Karl Azzopardi, also did not reply.

Following The Shift’s initial report on the matter, the MIEA issued a brief statement confirming that although Pellicano currently works at the agency, he remains formally employed by Projects Plus, the government entity that was supposed to have been wound up and absorbed into the newly established MIEA months ago.

The latest revelations add to growing concerns surrounding Pellicano’s involvement in Abela’s private development project, which has already raised serious questions about conflicts of interest and political patronage.

Pellicano sits on the board of the Building and Construction Authority (BCA), the regulator responsible for overseeing construction activity and ensuring compliance across the sector.

Official documents show that Pellicano has been acting as site coordinator or project manager on Abela’s hotel development in Xewkija – a role that places him directly within the sphere of activity regulated by the authority on whose board he serves.

Construction industry insiders described the situation as a clear conflict of interest, noting that a board member of the country’s construction regulator should not simultaneously be overseeing a major private development project owned by the prime minister.

Sources also pointed to a series of lucrative government appointments awarded to Pellicano after he became involved in Abela’s project.

In addition to his position on the BCA board, Pellicano was appointed to the board of the Property Market Agency and subsequently handed a senior executive role at Projects Plus, later rebranded as the MIEA.

Although Pellicano publicly describes himself on his social media as an engineer, his name does not appear on the latest published list of warranted engineers.

Individuals familiar with the sector said Pellicano previously worked as a land surveyor within the architectural firm of architect Joe Cassar before moving into several government-linked appointments. He also operates his own consultancy company, RPA Consultants Ltd, based in Mosta.

Pellicano did not answer questions sent to him to explain how he could simultaneously serve on the board of the country’s construction regulator, coordinate the prime minister’s private hotel project and occupy a full-time government executive role at the same time.

The controversy piles up on questions surrounding the financing of two major luxury developments being undertaken by prime minister and his wife, Lydia Abela.

Robert Abela has repeatedly refused to explain how the couple are financing the projects despite declaring an annual income of around €65,000 and showing no registered loans in his last-declared declarations of assets. He has stopped that process despite his claims of a transparent government.

One project involves the redevelopment of Villa Ċinja in Żejtun, an ODZ property purchased by the Abelas in 2017 for a declared €600,000. The property is being transformed into a luxury residence complete with extensive gardens and a large swimming pool.

Works on the Żejtun mansion are being carried out by contractor Elbros, owned by Charles Ellul, whose companies have benefited from several controversial government direct orders, including a €7 million Infrastructure Malta contract linked to the Ħal Far drag racing project currently under scrutiny by the National Audit Office.

At the same time, extensive construction work is underway at the Abelas’ farmhouse in Xewkija, which is being converted into a 22-guest boutique hotel featuring guest suites, pools, spa facilities, and entertainment areas.

The prime minister and his wife also spent a further €315,000 acquiring adjacent plots linked to the expansion of the project, transactions that later prompted questions after they were not clearly reflected in Abela’s asset declarations, while his reported bank deposits increased despite the substantial expenditure.

Construction at the Xewkija hotel is being carried out by Vella Brothers Readymix Ltd, known in Gozo as ‘tal-Malla‘. The contractors are linked to extensive illegal development in the tal-Gorġun area of Xewkija, including ODZ structures, pools and residences.

In recent weeks, the government moved to redesignate the area from outside development zone land to a “rural settlement”, a change that effectively regularised the illegal developments and significantly increased the value of the contractors’ holdings.