Kurt Farrugia handed second government post after Transport Malta sacking

Former Transport Malta CEO Kurt Farrugia has been handed another government appointment, with The Shift learning that he has now been made chairman of the National Development and Social Fund (NDSF), in addition to his new job as CEO of Residency Malta.

The latest appointment means Farrugia now occupies two taxpayer-funded posts, just weeks after being removed from Transport Malta, where he was receiving a package of around €150,000 a year.

So far, the government has not disclosed how much Farrugia is being paid for his two new positions from state coffers.

Sources told The Shift that the combined remuneration from Residency Malta and the NDSF is expected to bring Farrugia’s earnings close to the lucrative package he enjoyed at Transport Malta despite having much less responsibility.

Farrugia, a former Labour Party employee and long-time communications chief to disgraced former prime minister Joseph Muscat, also played an important role in Labour’s latest electoral campaign.

His latest appointment puts him at the helm of the board overseeing the government’s investment fund.

The NDSF was established in 2015 to receive and manage funds generated through Malta’s controversial cash-for-passports programme. Its remit includes financing projects of national importance in areas including education, research, innovation, social improvement, public health, job creation, social housing, the environment and the preservation of Malta’s heritage.

Hundreds of millions of euros generated by the citizenship scheme have passed through the fund, mostly through political decisions. By early 2022, more than €616 million had already been transferred to the NDSF from the sale of passports.

Farrugia’s chairmanship comes as the NDSF also changes at the executive level. Last month, the government appointed Matthew Costa as its new CEO, replacing Raymond Ellul, who retired.

The second appointment follows Farrugia’s abrupt removal from Transport Malta in June after his relationship with Transport Minister Chris Bonett deteriorated.

The Shift revealed that Farrugia was informed of his removal while holidaying in Monaco with businessmen involved in controversial Transport Malta concessions, with government sources describing the trip as the ‘last straw’.

Despite being removed from the transport regulator under a cloud of hobnobbing with businessmen, Farrugia was immediately given another government job.

Days later, the government announced his appointment as CEO of Residency Malta, a significantly smaller agency than Transport Malta.

The Shift had previously revealed that Farrugia was receiving around €150,000 annually at Transport Malta despite the agency’s continued underperformance and Malta’s worsening traffic problems.