Galdes, his penthouse, and irked Labour MPs

Roderick Galdes is under pressure over the purchase of a duplex penthouse in Gozo at below-market price from developer Joseph Portelli with Labour MPs questioning his political judgement. 

Galdes, who is minister responsible for social and affordable housing, was cast into the spotlight after it was revealed that he bought a penthouse with airspace and a garage for a mere €140,000. The property is situated in the Ħal Gelmus residential complex in Rabat, Gozo, built by developers Joseph Portelli, Mark Agius and Daniel Refalo. 

Galdes has defended the low purchase price, saying he reserved it in 2021 by entering into a pre-development agreement with the developers for a €5,000 deposit. The promise of sale agreement was done three years later, in 2024, and the contract finalised in January this year. 

The Ħal Gelmus complex in Rabat was built by developers Joseph Portelli, Mark Agius, and Daniel Refalo

But Galdes’s explanation has not convinced several fellow Labour MPs who spoke to this newspaper on condition of anonymity to be able to speak freely about internal matters. 

“Not one of my constituents has found the price of Roderick Galdes’s penthouse believable,” an irate Labour backbencher told MaltaToday. 

“I find it hard to justify that price when ordinary apartments are going at significantly higher rates, making it hard for young people to buy their own flat,” the backbencher said. 

Another Labour MP said it jarred that the minister responsible for housing has defied the market and managed to secure such a bargain price for a penthouse. “It’s true that the property is in Gozo, where prices are generally lower than Malta, but it irks people when the minister of affordable housing, of all things, buys a penthouse at a price that is unavailable in the market,” the MP said. 

Galdes has defended the low purchase price, saying he reserved it in 2021 by entering into a pre-development agreement with the developers for a €5,000 deposit

Although Galdes has described the penthouse, which is in shell form, as a four-room property of around 80sq.m, it has a rooftop jacuzzi and is located in a development that has a communal swimming pool. The price also includes a garage. 

But it is not just the “ridiculous” price of the property that has raised eyebrows, another Labour backbencher said. They noted that the Housing Authority, which answers to Galdes, last year leased more than 100 apartments from Joseph Portelli for use as social housing. The arrangement is part of an ongoing scheme that is open to all developers and individuals who want to lease dwellings for 10 years to the authority. 

“Even if everything was above board, having Joseph Portelli’s company benefitting from the scheme in the same year that it was selling Roderick Galdes a penthouse at bargain price just makes for bad optics,” the backbencher said, adding that at the very least Galdes had a conflict of interest. 

Although Galdes has described the penthouse, which is in shell form, as a four-room property of around 80sq.m, it has a rooftop jacuzzi and is located in a development that has a communal swimming pool

“Roderick Galdes made an error of judgement, and now it’s the Labour Party and the government that are suffering the consequences,” a fourth MP said, suggesting that the minister has no way out but to resign from Cabinet. 

“The incident is embarrassing and among my constituents it has become a subject of ridicule,” they said. 

But Galdes is also hounded by the accusations of “hobnobbing” with contractors levelled towards him by Marlene Mizzi, a former Labour MEP. 

Mizzi headed Malita Investments, a government-majority-owned company tasked with the financing and building social accommodation. Mizzi claimed she was removed in May 2024 because she stood up to Galdes and refused his interference in Malita’s operations. Galdes has denied the accusations. 

The executive chair Galdes appointed after Mizzi, Johann Farrugia, resigned last week, in the aftermath of news that Malita had suspended works on three of the social housing sites because of cash flow problems. 

Company accounts show Malita had a shortfall of €60 million by 2022 to be able to complete the housing projects after it had burnt through a €58 million loan from the European Investment Bank. After a successful share issue completed in 2024 that gave the company a €30 million injection, Malita was, however, unable to secure additional financing to bridge the gap. Things came to a head during the summer when the cashflow crisis forced the company to temporarily suspend works. 

According to a fifth Labour backbencher, the situation at Malita complicated matters further, especially with Marlene Mizzi’s claims that Galdes is close to contractors. 

“The Malita situation simply adds to the bad vibe created by Roderick galdes’s penthouse saga,” another Labour backbencher said, suggesting that Galdes should have stepped down. 

But the MP added the prime minister was also at fault for defending Roderick Galdes. “I believe it was a mistake for Robert Abela to justify the penthouse price and sticking with the minister when he knows how sensitive the housing issue is for sections of the electorate,” the MP said. “The longer the prime minister keeps Roderick Galdes on board, the more damage will be done to the government and the party.” 

READ ALSO | Hal Gelmus developers deny giving Galdes preferential treatment