Fraud, corruption, and misuse of EU funds in Malta raising concerns in EU

A delegation for the European Budgetary Control Committee (CONT) has raised concerns about corruption, fraud, and the misuse of European Funds in Malta

“European Funds are for Maltese citizens and they must be used for them, not for a small circle of politicians,” said MEP Tomáš Zdechovský, pleading for Malta to do something with its judiciary system.

Zdechovský led the delegation for the European Budgetary Control Committee (CONT), who had been in Malta since Wednesday undergoing a series of intensive meetings to assess the use of EU Funds in Malta.

The delegation came to Malta to ensure that EU Funds that Malta received are used to improve the lives of citizens and businesses.

When asked about specific situations which raised the delegation’s concern, Zdechovský replied “The Vitals scandal, golden passports, Electrogas, the Marsa junction, customer fraud...”

We want to know what’s really going on,” Zdechovský insisted.

It was stated that while the Maltese authorities provided the delegation with a positive outlook of the situation, this was quickly contradicted by civil society organisations who spoke of a slow justice system, in which high-level corruption cases are either not finalised in due time, or not prosecuted at all.

As an example, Zdechovský said that in 2025, the European Public Prosecutor’s Office (EPPO) had a total of 17 active cases of corruption or fraud in Malta, amounting to €235 million in estimated damages. 

“Just to compare, Latvia and Lithuania had active cases with similar estimated damages, but with a population three to five times bigger than Malta,” explained Zdechovský.

The delegation said that while authorities reported no issues of mafia in the country, this was contradicted by a number of names seen in Maltese reports which are seen again and again in reports outside of Malta. 

Zdechovský also praised Malta for its progress, growing from one of the poorest to one of the richest countries in the EU, but emphasised that further challenges remain, and the EU wants to help. 

He referred to his own country, Czechia, where politicians have to resign once involved in a political scandal. “We do not belong to anyone,” he said, “And we will be following up with these findings.”

“Out of our duty to Malta and as protectors of the European Union, our message is clear, we need to do more,” said MEP Peter Agius, who called for further scrutiny in the use of EU funds to ensure that every euro is used correctly.

Agius also spoke about the end of the declaration of assets for MPs' spouses and the removal of public inquiry powers to the list.

Government says public narrative doesn't reflect tone of meeting with CONT

In a statement later on Thursday, the European Funds Ministry said that the discussions between itself and the CONT delegation "

was based on a constructive dialogue, where all concerns based on a series of misconceptions were thoroughly and satisfactorily addressed by government."

"The Ministry notes with concern that the subsequent public narrative does not reflect the substance or tone of the meeting. It is evident that certain conclusions were drawn independently of the actual exchanges held in Malta, raising legitimate questions as to whether positions were pre-determined prior to the visit," the ministry alleged.

The ministry said that government remains open to constructive dialogue with all EU institutions.