Housing Minister says he's 'not at all' worried about Malita Investments woes

Housing Minister Roderick Galdes is not concerned about the completion of ongoing social housing projects despite contractors seeking millions in unpaid bills from the government’s holding company, Malita Investments, which is responsible for social housing projects.

“Malita [Investments] plays an important role in the country, with substantial assets worth millions. And, therefore, it is financially capable of resolving or managing its own financial affairs,” Galdes told Times of Malta yesterday.

Two contractors have filed a judicial protest seeking a total of over €624,000, while another contractor claims that he is owed nearly €1.5 million in unpaid bills from the company. Several other contractors are also believed to be owed millions.

Meanwhile, the government’s flagship social housing project in Luqa’s Ħal Farruġ area has stalled. Malita Investments owned up to “liquidity constraints”, saying it was undergoing a strategic review of the Ħal Farruġ project but insisted that it was not looking for a government bailout.

This project includes the construction of a 267-apartment block and is slated to be completed by 2026. The project is being financed through a €22 million loan from the European Investment Bank.

Galdes would not comment on the unpaid fines or reveal whether there are other contractors seeking the money, pointing to the fact that Malita Investments is a public limited company, thus the government cannot intervene.

Regarding social housing projects, Galdes said that the government acts as a client. “As a client, we are insisting that the projects are completed within a reasonable timeframe,” he said.

The minister also acknowledged that the €40 million Ħal Farruġ social housing project is the largest project.

“It is a social accommodation project that brings with it expenses and financial obligations that must be fulfilled. But I am determined to help and ensure that this project is completed,” he said.

Despite this, he also pointed out that there have been several housing projects that have been completed, and the ones left are the ones in Ħal Farruġ and Msida.

But when asked whether he is concerned, he replied: “No, not at all.”

Malita Investments is jointly owned by the government, which has an 82 per cent stake, and private shareholders, who own the remaining 18 per cent.

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.

The Shift reported that Malita Investments’ stock fell to €0.342 on Tuesday, which is nearly €0.11 lower than what it was on November 6.