The Malta Association of Small Shareholders (MASS) is joining calls for an independent investigation into Malita Investments, citing mounting concerns over the company’s financial management, governance and its handling of a new line of business during the past two years.
Just last week, PAC Opposition members also requested an investigation into the Malita case.
“Our concerns were about Malita's financial management with respect to failure to change auditors who had been engaged since inception. Other concerns raised were with respect to the affordable social housing project's collectability of rents,” spokesperson Tarcisio Barbara tells WhosWho.mt.
Elaborating on the concerns, Mr Barbara says it has been raising red flags since Malita entered the affordable housing sector, a move that brought with it new financial risks and uncertainties.
One of the key issues highlighted was the company’s long-standing use of the same auditors. “Malita's response was that it was not a government entity and was therefore not bound to rotate auditors. However, the auditors were changed at a subsequent EGM,” he notes.
The association also questioned the collectability of rents tied to the affordable social housing project. “Malita said that up to 85 per cent of the rents due from this project were going to be guaranteed by the Housing Authority,” Mr Barbara said, adding that these concerns were raised repeatedly at the company’s annual general meetings over the past two years.
Beyond financial matters, MASS has long argued that shareholders are not adequately represented within Malita’s governance structures. “There were several attempts in recent years to appoint a director to represent minority shareholders, but these attempts were never successful,” Mr Barbara shares.
Shareholder unease escalated further when Malita announced its first missed dividend since 2012. Historically, the company distributed a seven per cent annual dividend split between interim and final payouts. “As far as we know, in previous years the company always performed well, which is why it came as a surprise to shareholders that no interim dividend was distributed this term,” Mr Barbara says.
The financial strain has unfolded alongside governance upheaval and legal pressure. Over recent months, suppliers have filed judicial letters over more than €600,000 in unpaid bills, and the company’s executive chairman was replaced just last week. The period has also been overshadowed by allegations of ministerial interference made by former a Chairperson.
MASS said that despite numerous attempts to discuss these issues directly with Malita, the company has not responded to its requests. “We are currently receiving numerous inquiries about this company from our members,” Mr Barbara told WhosWho.mt last Friday.
“For this reason, we have repeatedly requested a meeting with the company so they can explain their position. However, these requests have so far not been accepted.”
“In light of everything that has unfolded over the past two years, we believe an independent investigation is necessary,” the association concluded.
