Top Story • December 21 2003

Is Louis Grech’s Lm336,000 six-year salary an invention?

Former Air Malta chairman Louis Grech, target of IT and Investments Minister Austin Gatt’s recent outburst in Parliament, in which it was suggested that Grech could have earned up to Lm336,000 over his six-year chairmanship, is questioning Gatt’s claims.
Although Louis Grech has failed to indicate how much he has earned as chairman of the national airline, the impulsive Austin Gatt could face accusations of unfairness and incorrectness if it is proven that Grech earned much less than originally claimed. The IT and Investments Minister’s comments have not only ruffled Mr Grech’s feathers but also have shaken the stature of former cabinet colleague Josef Bonnici, who may have good reasons to feel incensed by Dr Gatt’s commentary in Parliament.
Dr Gatt’s comments emphasised the mismanagement and overspending in many of the parastatal companies, effectively pointing to political incompetence at the very top. MaltaToday has discovered that the comments have irritated the former economic services minister Bonnici who, according to some of his supporters, was the most competent of ministers. Others within the Nationalist party believe he was the complete opposite. MaltaToday can now reveal that Louis Grech was re-appointed Chairman of Air Malta by the 1998 Nationalist government amidst strong opposition from some cabinet ministers. It is not known which ministers were for and against keeping Mr Grech on board, but it is apparent that supporters of his re-appointment were those who traditionally prefer not to ‘rock the boat’.

These continued to favour Mr Grech’s nomination in preference to a new face that could have been more sympathetic to the Nationalist Party. However it remains a fact that Louis Grech’s alleged Lm56,000 remuneration was never reconsidered at any point during the past legislature’s cabinet in which Dr Austin Gatt was also a prominent member. The same applies to remuneration for directors featured in the long list of instances of overspending recently outlined Parliament by Dr Gatt.
Dr Gatt has refused to divulge details about Mr Grech’s salary, referring MaltaToday to Air Malta instead. It is known that Mr Grech received remuneration not only from the parent company, but also from the other Air Malta subsidiary companies. Mr Grech is now standing for European parliamentary elections on a Labour ticket, with this latest allegation having done nothing to help his image.
Louis Grech has also failed to clear the air about his alleged salary until going to print. MaltaToday also asked the Minister for information on the salary of Mr Grech’s predecessor, Mr Joe N Tabone, but this query was also not acceded to and MaltaToday was once again referred to Air Malta for specific details.