A decision to terminate the contract of former Infrastructure Malta boss Ivan Falzon after just two years cost the government over €140,000.

Falzon’s employment was terminated in July after the roads agency boss reached an “amicable separation” with Transport Minister Chris Bonett.

Details of the settlement agreement obtained by Times of Malta via a freedom of information request show Falzon was contractually entitled to 18 months’ salary due to the early termination of his five-year employment term.

Falzon’s annual salary of €95,000 means his termination cost the government around €142,500.

The settlement agreement also bound Infrastructure Malta to pay Falzon the performance bonus due to him, as well as any accrued vacation leave.

His contract allowed for a performance bonus of up to 20 per cent of his base salary.

The settlement forbids both Infrastructure Malta and Falzon from making any statements to third parties “relating to the circumstances of this agreement”.

No official reason was ever given for Falzon’s termination

It also binds the parties to “refrain” from instituting or making any reports or statements to any court, tribunal, police or authority in any manner connected with Falzon’s employment.

Ex-Infrastructure Malta CEO Ivan Falzon. Photo: Jonathan Borg

No official reason was ever given for Falzon’s termination. He was replaced by former MEP candidate Steve Ellul, who was put on a similar salary package.

The 18-month ‘golden handshake’ clause is however absent from Ellul’s contract, although the new Infrastructure Malta’s CEO was put on a shorter three-year term. 

Falzon was appointed CEO in July 2022 by then infrastructure minister Aaron Farrugia, after previously serving as CEO of the Water Services Corporation and Mater Dei Hospital.  

Infrastructure Malta was set up in 2018 with a €700 million budget to rebuild all of Malta’s roads.

Bonett has told parliament the agency rebuilt 1,315 roads in the six years since the project was launched.  Infrastructure Malta has so far rejected a Times of Malta freedom of information request for a list of all the completed roads.