Galdes legacy weighs on Malita as cash reserves plunge to €1.8 million and dividend is withheld

Malita Investments will not pay shareholders an interim dividend after its cash reserves plunged by more than 70% in six months, as the government-controlled company continues to grapple with the financial and governance legacy of former housing minister Roderick Galdes.

The beleaguered company’s unaudited interim accounts show that cash and cash equivalents fell from €6.4 million at the end of December to just €1.8 million by 30 June.

Malita also registered a net operating cash outflow of €1.1 million during the first six months of the year. During the same period last year, it generated an operating cash inflow of €13 million.

Despite describing its overall financial position as “stable”, the company said its directors had decided not to recommend an interim dividend after reviewing its cash flows and committed capital expenditure.

The decision extends the suspension of shareholder returns following the liquidity crisis that erupted while the housing sector was under Galdes’s political responsibility.

Malita is 81.94% owned by the government, while private shareholders hold the remaining 18.06%.

Many small investors were originally attracted by the prospect of regular dividends generated through government-backed property and concession income.

Strangely, despite its deteriorating finances, administrative expenses rose by 31%, from €1.1 million to €1.5 million, largely due to wages and perks to government appointed officials.

Malita’s financial problems are principally linked to its affordable housing programme, which ran into severe liquidity difficulties during Galdes’s tenure.

Works on the remaining developments were suspended after Malita exhausted its available funding and struggled to pay contractors.

Galdes had repeatedly promoted the developments as a flagship government housing initiative. In November 2025, despite contractors pursuing unpaid bills and works grinding to a halt, he insisted he was “not at all” concerned and said Malita was capable of managing its own financial affairs.

The problems soon escalated into a wider political and governance controversy.

Former Malita chairwoman and Labour MEP Marlene Mizzi accused Galdes of interfering in the listed company’s operations and maintaining an inappropriate proximity to contractors.

Galdes denied interfering, while Malita’s board insisted that its decisions were taken independently. The allegations were never subjected to a transparent investigation.

Questions were also raised after The Shift revealed that, before the 2022 general election, prospective tenants in Bormla had been informed by Galdes that they would receive apartments in a project that remains unfinished to this day.

The company is now under the political remit of Minister Owen Bonnici. So far, he has not commented on the company’s state of affairs or said when the promised social housing units will see the light of day.