Questions widen over Maltese Church property dealings with Corinthia Group

Recent reporting by EU Reporter outlined allegations concerning a pattern of opaque property dealings involving the Maltese Curia and CPHCL, the parent company of the global hospitality group Corinthia. The allegations were first set out in a confidential memorandum provided to Serbian outlet Nova.rs, with two figures - Archbishop Charles Scicluna and Alfred Camilleri – featuring heavily in the document. Attention has since widened to the broader network of individuals involved.

Recent outlet have questioned the network of advisors and associates around Archbishop Scicluna. Reporting by investigative publication The Shift found that “the Archbishop is armed with a PR agency, a very close personal adviser and a network of power.” Part of that network is said to include Steve Mallia, a close friend of Scicluna and former editor at The Sunday Times of Malta, who now advises the Curia on its public relations and communications.

The Curia has confirmed that Mr Mallia was consulted in relation to the Archbishop’s decision to convert an old farmhouse into a second residence. Asked why it had retained Mr Mallia’s services, the Curia said only that “he saved money.”

Both the Archbishop’s relationship with Mr Mallia and the rationale for the countryside residence have drawn concern over transparency in decision-making within the Maltese Church, one of the nation’s most respected institutions. The residence was initially designed to feature a pool, though this element was dropped from the final plans.

The Curia failed to respond to The Shift’s initial request for comment and has not clarified the cost of the project, its intended use or the need for the new residence.

The episode has drawn further attention to transparency within the Curia’s decision-making and its use of external advisers.

Michael Pace Ross serves as Administrative Secretary of the Archdiocese of Malta, a role that places him at the centre of the Curia’s operational and contractual decision-making. His wife, Lucienne Pace Ross, is Territory Senior Partner of PwC Malta, the most senior figure at PwC’s Maltese branch. PwC Malta has acted as the external auditor of the Corinthia Group.

Alfred Camilleri has faced scrutiny after being charged in connection with the Vitals Global Healthcare and Steward Healthcare hospital scandal. As the recent EU Reporter noted, Camilleri retained his seat on the CPHCL’s board for a year and 9 months after those charges were brought.

Paul Bonello has been a vocal critic of the Curia and the Archbishop’s decision-making practices in particular. A former financial markets commentator on the Church’s radio station RTK, Bonello alleged that his show was suspended and later dropped as a result of his questioning of the Curia. More recently, Bonello has inquired into Mr Mallia’s role within the Church administration, publicly questioning why the adviser had attended numerous meetings with the Archbishop and accompanied him on a visit to London. In response to one of Bonello’s Facebook posts, lawyer Anna Mallia wrote: “Don’t open a can of worms, Paul.”

The questions raised by the Casa Leone agreement sit within a wider set of property dealings involving the Curia and Corinthia Group. The memorandum also referred to the Ta’ Vestru estate in Ħ’Attard, which it alleged had been allocated to Corinthia for €1.9 million, raising questions over whether the deal was awarded through a competitive public tender. Those concerns follow previous reporting on the Curia’s approach to property transactions, including its private negotiations to lease Casa Leone to Corinthia and its separate decision to grant a 30-year concession to Integra Wellness Clinic to operate the Apap Institute. A property in Xemxija has also attracted scrutiny.

The Curia and Corinthia Group have not publicly responded to the allegations first reported by Nova.rs and subsequently covered by this publication. The reporting has placed renewed scrutiny on the relationship between two of Malta’s most prominent institutions.

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