Minister’s partner behind €1 million government allocation for Bruno Mars concert

The company behind a planned mega Bruno Mars concert in Malta, which has been awarded almost €1 million in taxpayer funding, is partly owned by Daniel Farrugia, the partner of Equality Minister Rosianne Cutajar, The Shift has learned.

The concert, for which no date has yet been announced, was among the largest beneficiaries of the government’s recently announced Large Scale Events Support Scheme, receiving nearly €1 million in public funds despite being a commercial, ticketed event.

The subsidy has been awarded to GMED Projects Ltd and Media Exclusive Ltd, the two companies organising the concert.

GMED Projects is jointly owned by Daniel Farrugia, Owen Spiteri and Edward Curmi, the owners of G7 Events, a company best known for organising the annual Isle of MTV concerts in Malta since the pre-2013 Nationalist administration.

Farrugia’s partnership with G7 began only a few years ago. The group is also involved in the online portal Malta Daily, which is known for its pro-Labour paid propaganda.

Industry sources told The Shift they were surprised that GMED Projects and Media Exclusive were awarded a combined €2.2 million in taxpayer funding to organise four separate events under the controversial scheme, despite neither company being widely recognised as a major promoter of international arena-scale concerts.

Media Exclusive is better known as the company behind Love Island Malta, broadcast on the public broadcaster and also subsidised by taxpayers through a separate, convoluted scheme.

Besides the Bruno Mars concert, the companies were also allocated public funds for Radio 105, Benson Boone and Solomon Live events.

The allocations have raised eyebrows within the entertainment industry for two reasons: the government’s decision to subsidise private commercial concerts with millions in public funds while ticket revenues remain entirely with the organisers, and the involvement of a company partly owned by the partner of a serving Cabinet minister.

Although there is no indication that Minister Rosianne Cutajar was directly involved in the evaluation or award process, industry operators questioned whether sufficient safeguards were in place to avoid actual or perceived conflicts of interest when public funds are allocated to businesses linked to politically exposed persons.

The Shift has previously reported that Daniel Farrugia has increasingly emerged as a businessman involved in several controversial commercial projects.

Earlier this year, it revealed that Farrugia is one of the principal promoters behind the controversial application to reclaim public seabed opposite Manoel Island and develop a large commercial lido on the Sliema waterfront.

That project, submitted through Strand Lido Ltd, is being promoted jointly with the government-owned Malta Libya Holding Company (LAMHCO) and Sea Pebbles Ltd, and has attracted more than 1,200 objections from residents, NGOs and environmental organisations.

Farrugia’s growing commercial profile has attracted increased scrutiny because of his relationship with Equality Minister Rosianne Cutajar.

Cutajar returned to Cabinet following Labour’s latest electoral victory.

The latest subsidy awards form part of the Large Scale Events Support Scheme administered by Festivals Malta.

The scheme committed almost €10 million in taxpayer funds to subsidise commercial concerts featuring A-list international artists, including Paul McCartney, Mariah Carey, Lionel Richie, Michael Bublé, Pitbull and Black Coffee.

While the government insists that the scheme is intended to attract international events and generate economic activity, critics have questioned why private promoters should receive substantial public funding while still charging the public for admission and retaining the commercial proceeds.

The PN opposition has yet to react to the latest developments involving millions of euros in taxpayer funds.