Contractors seek €624,000 in unpaid bills from Malita Investments

Two contractors have filed judicial letters seeking over €624,000 in unpaid bills from Malita Investments, the government’s holding company responsible for its flagship social housing project in Ħal Farruġ.

Malita Investments confirmed that works on the Ħal Farruġ site were suspended.

The company insisted that this decision was taken on its own initiative, as it undergoes a “strategic reassessment” of its housing project. On Thursday, the Shift News reported that work on the project had stalled after Malita Investments failed to settle outstanding payments.

Court records show that Calibre Industries - part of the Cortis group of companies - filed two judicial letters against Malita Investments in late August, claiming it is owed over €545,000.

A month later, Vella Falzon Building Supplies followed suit, filing its own judicial letter claiming just over €79,000 in unpaid dues. This bill is believed to be for works on another housing project in Msida, rather than the Ħal Farruġ project.

In total, the two companies claim they are owed €624,000 by Malita Investments.

It is unclear whether other contractors engaged by Malita Investments are also chasing the company for payment.

It is also unclear why Malita Investments, which is listed on the Malta Stock Exchange, did not disclose this to its shareholders through a company announcement.

Malita Investments had not responded to questions sent by Times of Malta at the time of publication. Attempts to contact the Vella Falzon group were also unsuccessful. Meanwhile, Calibre Industries declined to comment, citing the group’s policy not to comment on such matters.

Malita Investments admitted that it was experiencing “liquidity constraints”, which led it to suspend dividend payments.

Company ‘is not expecting a government bailout’

The strategic review is expected to be completed by the end of the year, the company said, promising to inform investors whenever any decisions are taken.

Despite its financial troubles, the company “is not expecting a government bailout,” the statement said.

What is Malita Investments?

Malita Investments is a holding company set up by the government, ostensibly to finance large-scale development projects.

The company is jointly owned by the government, which has an 82% stake, and private shareholders, who own the remaining 18%.

Over the years, it has been involved in many of Malta’s iconic developments, from the Valletta City Gate project to the Valletta Cruise Port and Malta’s airport.

More recently, it has turned its focus to affordable housing projects, with the company being moved to the Ministry for Affordable Accommodation two years ago.

Its latest project is a 267-apartment housing block in Luqa’s Ħal Farruġ area, initially slated to be completed by 2026. The project is being financed through a €22 million loan from the European Investment Bank.

The company has faced some controversy in recent months.

Days ahead of last year’s European Parliament elections, the company’s then-CEO Jennifer Falzon was named in a court ruling which found that voters were manipulated to change their address to an as-yet uninhabitable Siġġiewi block. Falzon denied allegations that this was carried out on her orders.

Nevertheless, by the end of the year, Malita Investments and Falzon had parted ways, with her role temporarily filled by the company’s Chief Operations Officer, Amanda Desira.

A few months later, the company’s Chief Financial Officer, Michele Abela, stepped down.