No chairman for Malita Investments yet

Reports on the imminent appointment of stockbroker Paul Bonello, of Finco Treasury Management as Malita Investments chairman were reneged by finance minister Edward Scicluna.  

Replying to questions by Nationalist MPs Jason Azzopardi and Tonio Fenech, insisted that he issued no statement on the matter and no official appointment had been made.

Scicluna was asked whether the new Malita Investments chairman had a conflict of interest and the two Opposition MPs held that the appointment was official and made public.

After insisting that Bonello had not been appointed Malita chairman, Jason Azzopardi asked whether the government had a change of heart after realising that Bonello could not be appointed because of a conflict of interest.

He also asked whether Bonello had been at the Malita Investments offices and allowed to handle some files.

Scicluna said that the Opposition MPs were only speculating as many people could be touted for a job and have a potential conflict of interest.

"You could verey easily mention 20 or 30 persons who could be appointed as chairman," Scicluna said.

Pressed by the Opposition MPs to explain whether he could confirm Bonello's presence at the Malita offices, Scicluna replied "I have no further information to divulge."

In April, a number of medi reports said that Bonello, was set to be appointed chairman ofMalita Investments, the company set up by the previous administration to administer the financing of the City Gate project for the siting of the new parliament and the Royal Theatre.

Bonello,who led an investors' campaign to recoup savings they lost in Bank of Valletta's La Valette multi-manager property fund back in 2010, had endorsed Labour in the run-up to the election and even addressed a party mass meeting, presenting himself to voters as a "switcher" who was voting Labour.

Malita, 70% owned by the Maltese government, manages a property portfolio of strategic national importance. The 'special purpose vehicle' is a public company listed on the Stock Exchange, and receives the annual rents from the Malta International Airport and Viset, which are run by private consortia. The company invests in local and foreign stocks and shares as well as issue bonds to the public, raising money for the City Gate project as well as running the project.

MIA will pay €905,000 in rent this year, and €4 million between 2013 and 2016. By the end of its 65-year lease, it will have paid €120 million.

Once the City Gate project is completed, the properties will be leased out at a rental yield commensurate with that generated in the commercial property market in Malta.