Minister sees no conflict for Transport Malta chief to open private firm

Transport Minister Joe Mizzi has declared he is not against the executive chairperson of Transport Malta, from having his own private investments firm.

James Piscopo, who is paid €85,000 for his role as transport regulator, has insisted he has committed nothing untoward in setting up Undecim Five Investments Ltd, a company which also has a 14% stake in another company.

While Piscopo oversees one of the largest authorities on the island, which is responsible for multi-million contracts to the private sector for land, maritime and aviation transport contracts, the former Labour Party chief executive has dismissed enquiries into his business affairs as a “non-story”.

And minister Joe Mizzi has also offered his blessing:

“James Piscopo has set up a private, locally incorporated company in a completely transparent manner with all the information publicly available. I am informed, and assured that this company will not be doing any business related to Transport Malta, hence I see no conflict of interest and no reason why Mr Piscopo should be precluded [from opening this business],” Mizzi told MaltaToday yesterday when asked.

“There was never an issue with chairpersons and/or CEOs having a parallel, unconnected line of business or professional office setup as long as they can demonstrate they have no conflicting interests. I cannot understand why James Piscopo is being singled out,” Mizzi said.

Malta has no revolving doors rules which prevent public officials in high posts from instantly drifting into private sector employment after their contracts run out. 

Ministers are paid an adjustment allowance for the time they spend out of gainful employment once they are no longer part of the government executive. 

Only back in 2010, as Labour whip it was Joe Mizzi himself who had called into question then Transport Malta chairman Mark Portelli’s conflict of interest as a shareholder in one of the companies that formed Manoel Island Yacht Yard.

At that time, Mizzi’s predecessor Austin Gatt – replying to a PQ by Mizzi – had denied that Portelli had a conflict of interests when MIYY tendered for and won a Transport Malta concession for the yacht yard at Manoel Island.

As maritime regulator, few questions were made of the fact that as chairman of Transport Malta, Portelli was in business with firms directly in industries he himself regulated: such as one of the MIYY partners, Midi plc, which has a marina concession at Manoel Island.

Undecim Five set-up

James Piscopo’s set-up suggests he is already considering his future moves. Undecim Five Investments has as its address that of Robert Borg’s audit firm at the A3 Towers in Paola, which also happens to house the transport authority’s vehicle and licensing units.

Borg, whom Piscopo described as “a personal friend”, has also served as the General Workers Union’s financial controller while having also until recently served as Transport Malta’s board secretary.

In May 2013, a couple of months after Labour’s election victory, Borg was also appointed on the board of the Water Services Corporation, ARMS Ltd and the Malta Statistics Authority. 

A year later, Transport Malta decided to lease the GWU’s property at the A3 Towers – which includes three entire storeys – for almost €500,000 a year. In a similar deal, ARMS Ltd, a firm owned by Enemalta and the WSC, rented out part of the GWU’s headquarters in Valletta.

Denying any conflict of interest, Borg had said that he declared his interest beforehand as the union’s financial controller and left the meeting room when Transport Malta took the decision to award the €490,000 contract to the General Workers’ Union. So far, TM has refused to publish the contract it entered into with the union.

Piscopo – a former Air Malta accountant who was then seconded to the PL – said his company does not employ anybody since it was only recently set up. 

Undecim Five Investments – set up in February of this year – already owns a stake in BBF Ltd, a company registered last month. Piscopo’s company owns 14% of BBF Ltd, whose other shareholders include Marie Claire Chircop, Analytic Investments Limited and Sap Holdings Limited.

The Memorandum of Association confirms that Piscopo is the sole director and shareholder of the company whose main trading activity is “to act as a holding company and thus hold equities and investments in other companies.”

Other ancillary activities listed in the document include: to enter into agreements with governments, authorities and private companies to obtain contracts, grants, rights, privileges and concessions “which the company may consider desirable”, management and company advisory services to local and foreign companies, the import and export of a wide ranging list of goods including foodstuff, machinery, pharmaceuticals and precious metals and dealing in property.