Updated 2.50pm with TACA response

Fortina Contracting and TACA Construction have ended their relationship after eleventh-hour talks to restart works on a five-star Sliema hotel project failed.

Both companies claimed to have made the decision to terminate the contract in what has become a bitter public row. 

Construction has been stalled for the past three weeks after the Turkish company’s workers went on strike claiming they had not been paid their wages in five months.

According to a Fortina spokesperson, TACA Construction was given notice of termination on June 3. However “as a sign of goodwill following TACA’s request”, Fortina took part in talks that ended in failure.

“We have done everything within our power to try and salvage the situation, but TACA’s failure to return its workers on site has left us with no alternative but to confirm our decision to terminate,” a spokesperson for the company said.

“We empathise with the Turkish workers and assure we have done our utmost to not only meet all our financial obligations with TACA Construction for the approved civil works undertaken to date, but we’ve paid over and above to facilitate matters.”

TACA Construction workers on a hunger strike in Sliema on Tuesday.

Fortina Contracting said it is holding TACA responsible for damages resulting from the delays in the project and will be “taking all actions at its disposal to safeguard its interests”.

“We are committed to finishing this project and a new contractor will be taking over the works on site in the coming days,” Fortina said on Thursday morning. 

TACA hits back

However, in a statement issued later on Thursday afternoon, TACA insisted it had terminated the contract. 

 "Contrary to what has been erroneously reported, it was TACA who was left with no alternative but to terminate the contract in view of Fortina’s failure to honour its obligations. The notice of termination was issued by TACA," it said.

It said it too planned to "institute proceedings" and said that the decision to terminate the contact was unrelated to workers pay but instead "due to manifest and repeated defaults on the part of the Fortina".
 
"As an international contractor present in multiple countries and having performed and completed scores of successful projects, TACA has always taken good care of its workers in all the different phases of each project."

It said allegations it had failed to pay workers were "false" and "are being advanced with a clear and injurious agenda behind them".

"TACA also regrets that Fortina deemed fit to disclose details of signed contracts to the press, which in itself is yet another breach of contract and is consistent with the manner in which Fortina has treated signed contracts with TACA,” it said.

Workers 'told to leave Malta'

On Tuesday, Times of Malta reported that the group of Turkish workers had gone on hunger strike as they continued to insist they have not been paid for months.

The workers had also claimed they had been threatened with eviction and also said they were told to leave the island by Friday.

One of the 80 workers told Times of Malta that the builders have been given little information though they have been told the contract has been terminated. He claims they will be made to leave the island within days though the workers say they will refuse unless they are given the money they are owed. 

TACA is also involved in other projects in Malta, including the Shoreline development at Smart City and St Vincent de Paul.

The Turkish company has been controversial since its first days in Malta when it planned to house its workers in a quarry in Mqabba.