News • December 21 2003

Richard Muscat’s keen sense of bad judgement

Voice of the Mediterranean general manager Richard Muscat used to run the radio station as if it was his own, MaltaToday has learned.
The station is now in danger of closing down, unless further finances are obtained from the Libyan partners. Following a report in last Sunday’s MaltaToday, Mr Muscat’s legal counsel told this newspaper that the reference to the Libyan government only being willing to forward payment if Mr Muscat left, was incorrect and libellous.
Muscat’s lawyer alleged, furthermore, that Minister Joe Borg’s speech in parliament this week has clarified that there was no proof the Libyans’ willingness to pay was conditional on Mr Muscat’s departure.
While speaking in parliament Minister Borg laid on the table of the House an internal report on the activities at VOM, described by the opposition as a disgrace.
When MaltaToday contacted its Libyan sources, the same sources alleged that Mr Muscat’s departure would be helpful. At the same time a letter of interest from the Libyan partners appears to have been forwarded to the Maltese government to continue the operations of VOM.

Mr Muscat is considered to be a political non-starter by political observes, but is still held in high regard by the Prime Minister Eddie Fenech Adami. Muscat can add more than VOM to his CV, even if the time he spent at Radio 101 is considered by party insiders not to have been the best of decisions.
Richard Muscat was appointed Managing Director at VOM with effect from 1 July 2000 and the radio station is meant to close its doors at the end of this year. In stark comparison to his predecessor, Dr Richard Vella Laurenti, Muscat has ruled the radio station with an iron fist, often being decision-maker, judge and jury.
The evidence is clear and for all to see in the report tabled on the House of Parliament by Foreign Minister Joe Borg. The investigation is being considered a big laugh, more so considering that the individuals who prepared the report, were Ministry of Foreign Affairs officials.
While Vella Laurenti always took decisions to buy products and services by tender or quotes, Muscat avoided the procedure and issued direct orders, some of which to a company where his son was employed, but the report drawn up by the Ministry of foreign affairs saw nothing incorrect.
The report was drawn up by foreign ministry Permanent Secretary, Gaetan Naudi and Director of Corporate Services Charles Mifsud, on the instructions of Foreign Minister Joe Borg. It found that Muscat has done nothing wrong during his tenure, but should Muscat have a successor his activities will definitely come under further scrutiny.
Muscat’s omnipotence is illustrated by his employment procedures.
In one instance, described in the report it was stated that Colin Fitz was employed as a producer with administrative duties on 7 April 2003. According to the report "after the Managing Director had already employed him directly it was brought to his attention that employment was the competence of the Board."
The report continues: "An advert was placed in The Times and only one person (Colin Fitz) was interviewed out of the two that applied. The other applicant was refused unilaterally as he was considered too old. The Board was composed of Richard Muscat and VOM part time accountant Alex Vella.
In a meeting with the members of the Board, that took place on 17 March 2003, the Board was informed of the request to fill a vacancy and the choice of the employee and following a discussion, the employment of Fitz was confirmed."
MaltaToday has also learned that while Muscat had recently complained that VOM was not doing well financially, the managing director recently decided to attend the Venice Film Festival.
When Muscat took over VOM, the station was in a strong financial position, but now, three and a half years later it has built up insurmountable debts.
According to the audited accounts, prepared by Noel Muscat & Co, up until the end of 2002, the station was still in a strong position with an accumulated fund of Lm 1,293,663. But over the past year increasing costs and the fact that the Libyan partners were not making their contribution would seem to have put the station heavily in the red. Each year the Malta government and the Libyan Arab Broadcasters contribute Lm180,000 to the station, but according to the report the Libyans have not paid for six years.
One of the most contentious points was the decision of VOM to pay Lm3,000 monthly to Cyberspace Solutions, whose managing director Tony Cassar who is married to Josie Muscat’s daughter and one of whose employees is Richard Muscat’s son Mariano.
Contacts in business claim that the Lm3,000 monthly fee is scandalous and should never have been accepted.
While the report concluded that the contract was one that compared well with other similar ones, "if not being a bit cheaper," investigations by this newspaper indicate that the fee is far from competitive.
Labour shadow minister Leo Brincat, while not referring to the payments to Cyberspace directly said the report prepared by the ministry officials was an insult to the intelligence of anybody that read it.
VOM was meant to close down provided no backing is forthcoming from the Libyan partners in the radio station, but MaltaToday has learned that in a letter received by Muscat on 17 December, the Libyans agreed to finance the station for another ten years.
When MaltaToday asked the foreign ministry about the letter, a spokesperson from the ministry said: "The Government of Malta has always stated that if the Libyan Government indicates its interest to continue the joint operation in the VOM, pays its outstanding dues and indicates its willingness to pay its future contributions in full and on time the Malta Government will continue to make its own contributions thus allowing for the Station to continue its operation.
To date the Government has not received any official communication or payment from the Libyan Government to this effect."
The statement does not deny that a letter was in fact received. The VOM saga goes on. The report concocted by the Foreign ministry has deduced that Mr Muscat may not have been a corrupt man, but it does not disprove that he lacked managerial savvy, good judgement and a keen sense not to embarrass his government.

Who is Richard Muscat?

The Greek philosopher look-a-like Richard Muscat attained household fame when he ran the shabby illegal TV station studio master from Sicily back in the days of the Mintoffian government. His days of voluntary exile lent him respect and household fame from the Nationalist oligarchy, most especially from Prime Minister Eddie Fenech Adami. His experience in the media, was put the test when he ran Radio 101 for a short period. He tried his luck in the elections with the PN, never reaching new highs, but he was appointed a junior minister in the 1992 government. He was not re-elected and has since never tried his luck again. Recently he was appointed Ambassador to Ireland at the same time that he ran the Libyan-Maltese joint radio Voice of the Mediterranean. A radio station that has insignificant following in Malta, but claims to have extensive listener-ship across the world.
Mr Muscat is considered to be a political non-starter by political observes, but is still held in high regard by the Prime Minister Eddie Fenech Adami. Muscat can add more than VOM to his CV, even if the time he spent at Radio 101 is considered by party insiders not to have been the best of decisions.
Richard Muscat was appointed Managing Director at VOM with effect from 1 July 2000 and the radio station is meant to close its doors at the end of this year. In stark comparison to his predecessor, Dr Richard Vella Laurenti, Muscat has ruled the radio station with an iron fist, often being decision-maker, judge and jury.