A Web of Favors in Greylisted Malta
Malta, long criticized for its weak regulatory environment, remains under scrutiny after being greylisted by international financial watchdogs. The Mediterranean island’s tight-knit political and regulatory circles continue to reveal controversial backroom dealings—particularly involving the Malta Financial Services Authority (MFSA) and its former HR Director George Spiteri.
The Rise and Recycle of George Spiteri
George Spiteri’s career progression exemplifies how well-connected individuals navigate Malta’s public institutions with ease.
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1983: Began his professional journey at the Central Bank of Malta.
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2002: Joined the MFSA, ultimately serving as Director of Human Resources.
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Summer 2019: Opted for early retirement, walking away with a reported €150,000 payout.
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Weeks later: Assumed an identical role at the newly formed Malta Business Registry (MBR).
According to insiders, Spiteri showed no exceptional qualifications to justify his rise—other than his political connections.
The MBR: A Political Playground?
Originally part of the MFSA, the Malta Business Registry was spun off as a standalone entity shortly before Spiteri’s transition. While officially meant to enhance its independence, critics argue it served a different purpose: creating well-paying roles for party loyalists.
Employees even dubbed the agency a “Labour Party clubhouse”, given how appointments reportedly favor individuals close to Labour figures, including Economy Minister Silvio Schembri.
A Retirement Scheme Tailored for One?
Perhaps most troubling is the revelation, reported by The Times of Malta, that Spiteri himself had drafted the rules of the lucrative retirement package he benefited from. These terms were unlike other similar schemes—there were no restrictions or cooling-off periods.
This arrangement was approved by then-MFSA CEO Joseph Cuschieri, raising questions of self-dealing and ethical breaches (source). Here’s what makes the scheme controversial:
|
Feature |
Typical Schemes |
Spiteri’s Scheme |
|
Drafted by beneficiary |
❌ |
✅ |
|
Post-retirement employment restrictions |
✅ |
❌ |
|
Political ties involved |
❌ |
✅ |
Nepotism and Network-Building
George Spiteri isn’t alone. One of MBR’s recent hires, Jonathan Debono, previously worked at the MFSA and is married to the daughter of ex-Labour Minister Charles Mangion—himself related to Minister Silvio Schembri. Mangion’s other daughter, Gabriella, is also employed at MFSA. The web of familial and political ties continues to raise eyebrows.
A senior official at MFSA went as far as to label Spiteri’s maneuver a “major scandal,” stating that while most employees were merely transferred to the new agency, Spiteri cashed in and resumed the exact same duties—just under a different organizational label.
Legal Pushback: Brincat’s Judicial Letter
Former Labour Minister and long-serving MFSA board member Joseph Brincat challenged the legality of Spiteri’s payout. Through a judicial letter, he demanded that the MFSA stop disbursing funds that, in his view, it had no right to distribute. The current status of this legal challenge remains unclear.
Regulatory Rackets: A Culture of Collusion?
The pattern of political favoritism doesn’t end there. Joseph Cuschieri, the former MFSA CEO, became globally notorious for his trip to the U.S. with Edwina Licari, the MFSA’s General Counsel—funded by Yorgen Fenech, the casino magnate and suspect in the murder of journalist Daphne Caruana Galizia.
Before joining MFSA, Cuschieri had served as CEO of the Malta Gaming Authority (MGA), the body regulating Fenech’s gambling businesses. Licari was also part of MGA’s leadership team.
Although Cuschieri resigned after the scandal broke, there’s little indication of accountability—Licari still serves as General Counsel at MFSA.
The Cost of Greylisting
Malta’s reputation as a tax haven and lax regulatory zone caught up with it. According to its own annual report, the MFSA required a €24.7 million government grant just to break even.
Despite previously publishing positive financial results, the authority’s current reliance on state funding—and scandals like these—highlight why Malta earned its spot on the greylist. In fact, one might argue it was well-earned.
Source & Further Reading
Original coverage available via Times of Malta.