Housing minister Roderick Galdes (Ritratt: Miguela Xuereb)The Malta Chamber of Commerce, Enterprise and Industry called for a sweeping governance overhaul, demanding a “clear demarcation” between political direction and the executive responsibility of the civil service in the awarding of public contracts.
In a statement on Thursday, the influential business lobby cited “the latest developments concerning Malita Investments plc” as a catalyst for reiterating its long-standing call for Public Procurement Reform, which it has advocated since 2021.
This comes in the wake of a growing political controversy involving housing mnister Roderick Galdes. The minister defended his involvement through a personal Facebook post yesterday, insisting his role was limited to “general political oversight” rather than operational intervention in the government-owned investment holding company that finances, develops, and manages major national real estate assets.
His statement came after former Labour MEP Marlene Mizzi publicly accused him of “interference in the workings of a plc” and “hobnobbing with contractors,” claims she said led to her removal as Malita chair in May 2024. The controversy deepened when Malita’s executive chair, Johan Farrugia, submitted his resignation after just eight months in post.
The Chamber stressed that every euro of public expenditure must be governed by “clear rules, effective oversight and ethical conduct” to safeguard the public interest, ensure value for money, and guarantee a level-playing field for all businesses.
Central to its position is a strict separation of roles. “Deciding whether to privatise or not is a political decision,” the Chamber stated, “but once that decision is taken, the running of competitive processes and the selection of contractors is entirely a matter of executive competence,” which must be carried out “professionally, impartially and independently.”
The Chamber warned that a lack of transparency and efficiency in public procurement, a substantial part of government spending, “undermines trust in institutions, distorts competition, discourages reputable operators and can result in significant waste or misuse of public funds.”
The business group outlined key reforms it is urgently urging, including a governance framework that prevents ministers from influencing who wins contracts, the publication of a procurement outlook six months in advance, and a shift away from the “cheapest compliant bid” mindset toward quality-based evaluations.
It also called for a comprehensive, publicly accessible Contracts Register detailing all tenders, milestones, payments, and disputes.
The Chamber concluded by calling on the government, parliament, and oversight institutions to treat procurement reform as an “immediate national priority,” stating it is essential to safeguard public finances and restore citizens’ trust.
