The Malta Chamber of Commerce, Enterprise and Industry has renewed its call for urgent reform of Malta’s public procurement system, stating that recent developments at Malita Investments plc once again highlight the need for stronger governance, clearer lines of responsibility and greater transparency. The Chamber said the situation reinforces long-standing warnings that procurement processes must be shielded from political influence and conducted with strict professional independence.

The Chamber’s comments come amid scrutiny of Malita Investments — a government-majority-owned, publicly listed company — which this week denied any ministerial interference in its internal decisions. The statement followed the resignation of chairman Johan Farrugia amid reports of liquidity issues and contractor payment delays, as well as claims by former chair Marlene Mizzi that she was removed in 2024 after disagreements with Housing Minister Roderick Galdes. Malita has firmly rejected all allegations, saying resignations were due to governance processes and strategic differences, and confirmed it is assessing financing options to address its liquidity challenges.

For the Malta Chamber, the situation underscores a broader structural problem. It reiterated that a sharp and unambiguous separation is needed between political direction — such as defining policy or broader strategic goals — and the operational procurement responsibilities of the civil service and state entities. Ministers, it stressed, should set objectives, not shape or influence contract selection or competitive processes.

The Chamber warned that failures in procurement governance erode trust in institutions, deter reputable operators and risk waste of public funds. Given the scale of public procurement in Malta and its impact on economic competitiveness and public services, it called for long-delayed reforms to be prioritised immediately.

These reforms include a clear governance framework separating policy from execution; a public procurement outlook published six months in advance for all government entities; independent expert involvement in drafting tenders; and a move away from the “cheapest compliant bid” mindset towards quality- and performance-based evaluation.

It also urged tighter scrutiny of direct orders and contract variations, complete documentation of all procurement decisions, and the creation of an expanded, user-friendly public Contracts Register showing tenders, payments, milestones, deliverables and any disputes or modifications.

The Chamber concluded by calling on government, parliament and oversight institutions to treat procurement reform as a national priority rather than a long-term aspiration. Professional, transparent and politically independent procurement processes, it said, are essential to safeguard public finances and restore confidence in how major projects and public contracts are awarded.