Kevin Deguara and Jean Carl Farrugia, two individuals facing charges due to the Vitals inquiry, have resigned from their directorship roles at Shoreline Mall plc and The Convenience Shop (Holding) plc.
The two companies shared the news through separate announcements on Friday.
Shoreline Mall stated that Dr Deguara and Dr Farrugia resigned from their roles as Non-Executive Directors of the company, effective from 30th May 2024.
Additionally, Dr Deguara also resigned from his position as Non-Executive Director at The Convenience Shop, with effect from 31st May 2024.
The two individuals have sizable minority stakes in both companies.
Dr Deguara and Dr Farrugia are two of a number of individuals and companies facing charges related to the Vitals scandal, a deal to privatise three state hospitals that saw around €400 million in public funds being spent.
The deal, pushed by former Prime Minister Joseph Muscat and his administration, was later annulled by court and is now engulfed in legal proceedings.
Dr Deguara and Dr Farrugia are being included in the second batch of charges filed by the Attorney General, together with several other high-profile individuals. They are facing charges tied to money laundering, having participated in a criminal activity and criminal association.
The court case, held on Wednesday, dragged on for 11 hours after defence lawyers argued that DF Advocates – a company owned by Dr Deguara and Dr Farrugia – had not been notified for the proceedings. The case was deferred to 11th June.
The Vitals inquiry has already led to a number of resignations, including that of Chris Fearne from his position as Deputy Prime Minister and Government Minister, as well as a number of professionals linked to the case. Two subsidiaries of retail fashion business Dizz Group announced Dr Deguara’s resignation last month.
In addition to the announcement that Dr Deguara and Dr Farrugia have resigned from their roles, the two companies also announced that Benjamin Muscat has resigned due to retirement. Mr Muscat had served as Director and member of the Audit Committee at The Convenience Shop, while he was Director, Chairman and member of the Audit Committee at Shoreline Mall.
As a result, Shoreline Mall appointed Ryan Otto as Chairman with effect from 8th June 2024. Mr Otto is a South African entrepreneur who has expanded and diversified his investment portfolio over the years by investing in various transactions across multiple industries.
The Convenience Shop appointed Richard J. Saliba and Patrick Hall to fill the vacancies left by Mr Muscat and Dr Deguara. Mr Saliba will serve as Non-Executive Director and Chairman of the Audit Committee, while Mr Hall will be Non-Executive Director and member of the Audit Committee. Charles Scerri has been named Chairman.
The Board of Directors of the companies thanked the three outgoing individuals for their contributions over the years.
Shoreline Mall plc is the holding company of The Shoreline development in Smart City, Kalkara, which opened last March. The development features a mall and residences and had been in the works for the past few years.
The Convenience Shop is a leader in Malta’s retail sector, and has been present for over 15 years. While it started with a single outlet in Żebbug in 2009, it now has over 90 outlets spread across the Maltese Islands.
Main Image:Kevin Deguara (left) and Jean Carl Farrugia (right) / Horizon Finance
