Farrugia axed from TM while on holiday in Monaco with contractors

 Transport Malta CEO Kurt Farrugia has been informed that his services at the transport regulator are no longer required and that his lucrative contract will be terminated in the coming days, The Shift can reveal.

The decision was communicated to Farrugia while he was on a short holiday in Monaco in the company of businessmen linked to controversial and lucrative contracts awarded by Transport Malta, sources at the sustainable mobility ministry confirmed.

According to multiple sources familiar with the discussions, Sustainable Mobility Minister Chris Bonett decided he no longer wishes to work with Farrugia and has obtained the approval of Prime Minister Robert Abela to remove him from the post.

Farrugia, a former communications chief to disgraced former Prime Minister Joseph Muscat and one of Labour’s electoral campaign coordinators during the last general elections, was appointed CEO of Transport Malta in 2024 on a package worth more than €150,000 a year, excluding various perks and benefits.

However, despite his political connections and longstanding ties within the Labour administration, sources said this was not enough to save his position.

“The relationship between the minister and Farrugia had become increasingly strained over the past months,” one source said. “The Monaco trip was the last straw.”

Government sources said officials at the Office of the Prime Minister are already discussing alternative positions for Farrugia within the public sector in an effort to ensure that his state-funded income remains as close as possible to his current remuneration package.

Questions sent to Farrugia regarding the termination of his contract and his trip to Monaco went unanswered.

The latest developments come amid growing scrutiny of Farrugia’s role in several controversial decisions taken by Transport Malta, including the ongoing saga surrounding the Gardens Marina concession in Ta’ Xbiex.

Sources confirmed that Farrugia’s trip was connected to businessmen involved in the Gardens Marina concession, whose owners have spent years attempting to transform a so-called capitanerie building into a fully fledged waterside restaurant.

The project has become one of the most controversial planning disputes in recent years.

Last year, the Court of Appeal struck down the permit for the development after finding that it breached planning policies. Despite the ruling, fresh efforts have since been made to secure approval for a revised application that would effectively sanction the same development.

The planning application linked to the controversial project bears Farrugia’s name in his capacity as CEO of Transport Malta, even though the application is understood to be intended for the benefit of the private concessionaires operating the marina.

The capitanerie controversy has raised repeated questions about the relationship between Transport Malta and the concession holders, particularly after it emerged that the regulator had fronted the planning application and resisted requests for greater transparency regarding the concession agreement.

The building already erected in Ta’ Xbiex has not been removed and remains abandoned, with the attempt to sanction it expected to continue now that a new legislature is in session.