A state-owned company is to be wound down and its workers redeployed elsewhere, the economy ministry has confirmed.
Mimcol, which was set up in 1988 to manage and streamline government investments, is itself now facing the chop as part of a ministry exercise to “enhance efficiency and effectiveness across its entities”.
A ministry spokesperson reassured that the salaries of all Mimcol employees were fully safeguarded by transferring them to another government entity called Resource Support and Services Limited.
The spokesperson said this arrangement will ensure their expertise continues to benefit government operations, as the employees will be deployed across the wider public sector.
This deployment process, which commenced last year, is set to accelerate in the coming weeks, the spokesperson said.
Mimcol’s last big task appears to have been managing the government’s voucher scheme introduced at the height of the COVID-19 pandemic. The economy ministry said over the past two-and-a-half years it has embarked on a comprehensive effort to enhance efficiency and effectiveness across its entities.
It acknowledged that, over time, the responsibilities of Mimcol and another entity under its control, Malta Government Investments, had become “blurred”.
The ministry said initial decisions aimed at fostering greater synergies between the two organisations included the appointment of a single CEO and board of directors.
In tandem, the administrative and legal legwork had been under way to facilitate the winding down of Mimcol.
A “renewed entity” is being established under the control of Malta Government Investments.
This new body aims to deliver economic value across financial, social and strategic dimensions, support the economy through targeted economic advisory and support services and provide value-adding shared services, the spokesperson said.
As part of the ministry review, several other entities are being shaken up.
The eSkills Foundation will soon be integrated under the Malta Digital Innovation Authority, while the administrative functions of the National Foreign Direct Investment Screening Office have already been absorbed by the Malta Business Registry.
The spokesperson said these measures are not only cost-effective but also enhance the operational efficiency by leveraging shared resources.
“This approach is particularly beneficial for entities with smaller administrative setups, which must still fulfil all regulatory obligations, such as procurement, despite their limited scale,” the spokesperson said.