Malita Investments’ Board of Directors “categorically refutes” any allegations that its decisions and actions were influenced by ministerial intervention.
The board said that it has acted independently at all times.
The company issued an announcement on the Malta Stock Exchange. On Tuesday, former Labour MEP Marlene Mizzi has claimed that her 2024 removal from the chairmanship of Malita Investments plc occurred shortly after she confronted Housing Minister Roderick Galdes over what she described as improper interference in the company’s affairs and overly familiar dealings with its contractors.
“My ‘removal’ by Galdes, coincidently happened a few weeks after a meeting at his office , where I stood up to him, and told him that his interference in the workings of a PLc, and his hobnobbing with contractors engaged by the company, were not something I can accept. Evidently he was not amused,” Mizzi had written. Minister Galdes issued a statement on social media following Mizzi’s allegation. Galdes had said: “In every communication I had with Malita, my sole interest was to reduce delays and ensure that public accommodation projects progress at a pace that is acceptable for the families awaiting them. The company has its own managerial structure, and as Minister my role has always been one of general political oversight, not operational intervention. That is my responsibility and my duty to the public.”
In a company announcement on Wednesday, the Board of Directors of Malita Investments plc noted the “various conflicting and unverified reports on the media, including statements by various individuals, regarding matters that may not reflect the complete factual position.”
The Board of Directors said that it wishes to clarify that over the past years, it has proactively implemented comprehensive governance enhancement initiatives at the executive level to strengthen the company’s governance framework and ensure full compliance with best practice standards.
“These included the appointment of internal auditors, the issuance of a performance improvement plan for the CEO intended to address various areas highlighted in the first internal audit reports and the recruitment of professional personnel with skills commensurate to the current operations of the company.”
The Board categorically refuted any allegations that its decisions and actions were influenced by ministerial intervention.
“The Board confirms that it has at all times acted independently and in accordance with its fiduciary duties to shareholders, without external influence from any government official or ministry. All Board decisions have been made solely in the best interests of the company and its shareholders in accordance with proper corporate governance principles.”
The Board further said that any executive resignations were the result of personal reasons, legitimate governance processes and strategic differences regarding the company’s direction and were entirely unconnected to any alleged external intervention.
Earlier this week, Johan Farrugia had handed in his resignation from the executive chair post of Malita Investments plc.
“With reference to the current liquidity challenges facing the company, the Company wishes to assure all stakeholders that it is working diligently to address these issues. The company is actively exploring various strategic options and financing solutions to strengthen its financial position. The Board commits to communicating with the market in due course as soon as a comprehensive plan has been finalized, in accordance with its transparency obligations to shareholders and other stakeholders.”
The company said it remains committed to transparency and will continue to fulfil its obligations to all stakeholders.
Minister reacts
In reaction, Minister Galdes made reference to the statement where the company’s Board of Directors, “including the private directors who have served in this role for the past four years, categorically deny any allegation that I attempted to involve myself in or influence the company’s management. I do not accept, and will never accept, anyone trying to throw mud at me or tarnish my name with actions or intentions that never occurred. The Board has clearly confirmed that it has always taken its decisions independently and in line with the principles of good governance.”
“I will continue to state the facts as they are, and I will not allow anyone to undermine my integrity or the work I carry out seriously every day. Finally, I would like to thank everyone who has sent words of encouragement and solidarity during these hours. Your support gives me strength to continue doing my work with determination and transparency,” Galdes said.