Contractors Demand Over €624,000 From Malita Investments As Social Housing Works Stall
Two Maltese contractors are seeking a combined €624,000 in unpaid fees from Malita Investments, the government-owned company overseeing Malta’s flagship social housing project in Ħal Farruġ.
The claims come as work on the Ħal Farruġ site has come to a complete standstill. Malita Investments has confirmed the suspension but insists it was a voluntary pause, taken as part of a broader “strategic reassessment” of its housing developments, as reported by Times of Malta.
Malita Investments plc is a state-established holding company set up to finance and manage large-scale public development projects. The government holds an 82% stake, while private investors own the remaining 18%.
The halt follows reports by The Shift News suggesting that construction was interrupted because the company failed to settle payments with contractors.
Court documents show that Calibre Industries, part of the Cortis Group, filed two judicial letters in August, claiming more than €545,000 in outstanding bills.
Around a month later, Vella Falzon Building Supplies also turned to the courts, demanding just over €79,000 in unpaid dues. This second claim reportedly relates to works carried out on a separate housing site in Msida, rather than the suspended Ħal Farruġ project.
Together, the two contractors are demanding €624,000 from Malita Investments. It remains unclear whether additional suppliers or contractors are also pursuing payment.
Malita Investments, which is listed on the Malta Stock Exchange, has so far not issued a company announcement about the legal claims, raising questions about why shareholders were not informed of the developments.
At the time of writing, the company had not responded to questions sent by Times of Malta. Attempts to reach Vella Falzon Building Supplies were unsuccessful, while Calibre Industries declined to comment, citing internal policy.
The company has acknowledged facing liquidity challenges, which earlier this year led it to suspend dividend payments. In a statement, Malita said its ongoing strategic review should be concluded by the end of the year, with updates to be issued once any decisions are made.
Despite the financial pressure, the company stressed that it “is not expecting a government bailout.”
Image: Malita Investments
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