Regulatory Shadows in Malta: MGA Executive James Grech and His Conflicted Interests

Another Compliance Scandal Hits Malta’s Regulatory Landscape

Malta, a well-known hub for online gambling operations regulated by the Malta Gaming Authority (MGA), continues to face scrutiny over internal governance and ethics. Recent revelations indicate that James Grech, who served as Chief Officer Internal Audit at the MGA, was concurrently involved in private business ventures, raising serious concerns regarding conflicts of interest. According to information obtained by Scam-Or Project, Grech operated a training firm while occupying his regulatory post.

Dual Roles: Public Officer and Private Trainer

James Grech (LinkedIn) operated LEAD Training Services (LinkedIn), a firm delivering courses in areas such as anti-money laundering (AML), MLRO responsibilities, internal audit, and other gaming-related subjects. His senior role at the MGA granted him access to confidential data and upcoming regulatory changes—knowledge that he appears to have utilized to shape and promote his training offerings.

Through the MGA’s established network, Grech was reportedly able to liaise directly with human resources managers and executives of MGA-licensed operators, many of whom directed employees to attend his privately held training programs.

Licensing Questions and Financial Irregularities

LEAD Training Services is formally accredited by the Malta Further & Higher Education Authority. However, a review of its online presence reveals that it omits crucial educational license identifiers such as the C Number or P Number, as mandated under Maltese law. Additionally, invoices issued to students lacked a valid VAT number. Payments were funneled into personal Revolut or other accounts registered under J&A Grech, believed to be jointly held by James Grech and his wife, rather than through any corporate structure.

Political Ties and Questionable Appointments

Prior to Malta’s 2017 general election, Grech was engaged with the MGA on a contractual basis, charging an hourly fee for internal audit services. His political involvement in Aaron Farrugia’s election campaign—now Minister for the Environment—appears to have paved the way for his formal appointment as MGA’s Chief Officer Internal Audit, raising questions about meritocracy and favoritism.

Grech was also closely connected to disgraced former MGA officials Joseph Cuschieri and Edwina Licari, both of whom have faced their own share of controversy.

MGA’s Code of Ethics Ignored?

According to the MGA Code of Ethics and Professional Conduct, clause 7.9 clearly stipulates that:

“The prior approval of the Executive Chairman is required before we may engage in any form of business or employment outside our official duties… We shall avoid situations which could give rise to, or the appearance of, a conflict of interest.”

Clause 7.11 continues:

“It is of the greatest importance that public confidence in the impartiality of the public administration shall not be impaired in any way… Participation in political activities must not conflict with our primary duty to serve the Authority.”

Despite these rules, Grech’s actions and associations suggest otherwise.

Real Estate Dealings Raise Additional Red Flags

In addition to his training firm, Grech co-owns a property development company, Radar Developments Ltd (OpenCorporates), alongside his brother. One recent project in Marsaxlokk, initially marked for rejection, was surprisingly approved just two days later. This reversal has led to speculation about the influence of his close relationship with Minister Farrugia, who oversees the Planning Authority.

Radar Developments actively promotes properties across various Maltese towns—Tarxien, Attard, and Marsaxlokk—via its Facebook page, often featuring Grech’s personal mobile number. This has raised eyebrows about whether Grech was handling real estate inquiries during MGA working hours.

Properties Promoted by Radar Developments (Sample)

Systemic Conflicts Within Maltese Governance?

The growing list of officials juggling personal ventures and public positions in Malta highlights a broader cultural and regulatory issue. This convergence of private interests and official duties, especially among high-ranking individuals, further erodes public confidence.

Following Malta’s recent greylisting by the Financial Action Task Force (FATF), such stories only reinforce the notion that the island’s regulatory institutions face deep-rooted structural and ethical weaknesses.

No Surprise, Just Another Symptom

The case of James Grech is not an isolated one. It represents a wider problem in Malta’s regulatory ecosystem—one where lines between public responsibility and personal gain continue to blur, unchecked.