Malita Investments has denied that any of its decisions were influenced by political interference, one day after the company’s former chairperson accused minister Roderick Galdes of meddling.
In a statement issued on Wednesday, the publicly listed company’s board said it “categorically refutes any allegations that its decisions and actions were influenced by ministerial intervention.
“The Board confirms that it has at all times acted independently and in accordance with its fiduciary duties to shareholders, without external influence from any government official or ministry. All Board decisions have been made solely in the best interests of the company and its shareholders in accordance with proper corporate governance principles,” the company said.
The Malita statement comes one day after its former chair Marlene Mizzi said she had clashed with Housing Minister Roderick Galdes over his “interference” in the company and his “hobnobbing with contractors engaged by the company”.
Galdes later insisted he only played an “oversight role” and did not involve himself in operational issues.
The Nationalist Party, ADPD and Momentum have all called for a probe into Mizzi’s claims about Galdes.
Various resignations
Controversy following Mizzi’s post was only heightened after it was revealed that the company’s executive chairman Johan Farrugia had resigned, just months after assuming an executive role. The company’s CEO and CFO also quit earlier in the year.
In its statement, Malita did not refer to Mizzi or any of those resignations directly but instead said that “any executive resignations were the result of personal reasons, legitimate governance processes and strategic differences regarding the company’s direction and were entirely unconnected to any alleged external intervention.”
Malita was established by the government as a holding company for major infrastructural projects such as Valletta’s City Gate project.
It became a publicly listed company in 2012 and is listed on the Malta Stock Exchange. The government holds an 81 per cent stake, with private investors owning the remaining 19 per cent.
The company has run into financial trouble over the past year: shareholders were not paid a dividend, works on a flagship housing project in Hal Farrug have been halted due to cash flow problems and various contractors are suing the company for millions of euro they say they are owed.
Malita acknowledged it faces “liquidity challenges” but said on Wednesday it is exploring financing options to strengthen its position.
“The Board commits to communicating with the market in due course as soon as a comprehensive plan has been finalized, in accordance with its transparency obligations to shareholders and other stakeholders,” it said.
Galdes last week said he had no concerns about the company’s viability, saying Malita “is financially capable of resolving or managing its own financial affairs.”
