Tag: transport

  • Malta’s Transport Reform: Another Dead End or An Actual Road To Change?

    Malta’s Transport Reform: Another Dead End or An Actual Road To Change?

    By Julian Bonnici

    Promises of reform to Malta’s transport are much like the system itself: chronically delayed, over budget, and often failing to live up to expectations. From the failed Arriva venture to ambitious metro pledges, successive Maltese governments have repeatedly missed the mark, as pointed out by international experts, including the International Monetary Fund (IMF).

    Minister Chris Bonett is the latest minister leading the attempt to solve Malta’s perennial traffic problem, unveiling a set of proposals he said would bring about the necessary culture shift in the country while admitting they would not serve as a long-term solution. 

    Bonett indicated that the latest proposals, slated to roll out over 18 months, could cost around €15 million by the end of this year. Yet crucial details and cost breakdowns remain unclear, with Bonett assuring more specifics would follow.

    But what are the numbers behind the proposals? And, crucially, will they meaningfully reduce Malta’s notorious traffic congestion, exacerbated by nearly half a million cars on the island?

    Amphora Media spoke to experts Dr John Ebejer and Dr Karl Camilleri to get their sense of the situation.

    Malta’s Traffic Numbers: A Snapshot

    NSO FIGURES TRANSPORT MALTA
    Source: NSO

    Breaking down the proposals: Vehicle incentives and the bus network

    The government’s recently unveiled ‘Reshaping our Mobility’ action plan outlines seven pillars, ranging from a “24-Hour Economy” aimed at distributing off-peak traffic – to broad and somewhat vague strategies promoting alternative mobility. However, the vehicle-focused incentives captured immediate public attention, specifically:

    Surrender your Licence Scheme: 

    A cash grant of €5,000 annually for five years (€25,000 total) for individuals who give up their driving licence and car for five years. 

    This scheme is set to be implemented first, with a scheduled launch between April and June of this year.

    Scooter Shift Grant: 

    A cash grant of €1,500 per year for four years for a total of €6,000 if persons renounce their motor vehicle licence and car for four years and start using a small scooter.

    This will be the second scheme to be introduced. No specific timeline was given.

    Be the change 17+:

    A cash grant of €1,500 per year for four years for a total of €6,000 to 17-year-olds if they opt to drive a small scooter on the condition that they don’t obtain a driving licence by 21.

    This will be the final scheme to be introduced. No specific timeline was given.

    Other proposals include a motorcycle purchase cash grant, a reform to the classification of vintage cars, carpooling at the University of Malta (which has already failed in the past), tax incentives for employers to promote employee transportation services, and a green trail plan policy for the public sector.

    It appears that among experts, the policies as a whole, particularly the vehicle incentives, radically fail at addressing the issue – and rather act as a band-aid to a wound that won’t heal.

    Yet, experts consulted by Amphora Media underscored a vital, albeit overlooked, proposal: improving and expanding Malta’s bus routes and the revision of the road network in preparation for a new contract for operating the Malta public transport system.

    Malta Public Transport Buses

    The current proposals will complement projects already taking place, some encouraging people to buy and drive cars. 

    Currently, drivers can get grants of €400 to €1,500, depending on the vehicle type, to retrofit their petrol or diesel vehicles to use liquified natural gas. At the same time, Transport Malta also pays car owners to switch to electric vehicles or install photovoltaic panels, and a generous grant encourages drivers to buy electric cars. 

    The government also invests heavily in building more roads and subsidises fuel prices to keep them low. 

    IMF experts also suggest that “Pricing actions—e.g., on vehicle and fuel taxes, or parking charges—would be helpful.”

    Counting the Costs

    The exact costs of the government’s proposals have yet to be fully revealed, with Minister Bonett only broadly indicating they could exceed €15 million.

    Nevertheless, preliminary calculations suggest potentially alarming expenditures, especially considering participants can rejoin the driver population after the schemes end. 

    The proposed budget also includes numerous strategies beyond vehicle reduction, like parking solutions and alternative transport methods, raising concerns over the impact of these projects.

    Here’s a rough projection of potential costs:

    Surrender Your Licence Scheme:

    (€5,000/year for 5 years = total €25,000 per participant)

    % of Driving populationParticipantsAnnual CostTotal Cost (5 years)
    0.2%600€3,000,000€15,000,000
    1%3,000€15,000,000€75,000,000
    5%15,000€75,000,000€375,000,000

    Scooter Shift Grant:

    (€1,500/year for 4 years = total €6,000 per participant)

    % of Driving populationParticipantsAnnual CostTotal Cost (4 years)
    0.3%835€1,250,000€5,000,000
    1%3,000€4,500,000€18,000,000
    5%15,000€22,500,000€90,000,000

    Be the Change 17+:

    (€1,500/year for 4 years = total €6,000 per participant) 

    % of total number of 17-year-oldsParticipants (Approx. 5,000 17-year-olds)Annual CostTotal Cost (4 years)
    1%50€75,000€300,000
    5%250€375,000€1,500,000
    10%500€750,000€3,000,000
    Minister Chris Bonett
    Minister for Transport, Infrastructure and Public Works Chris Bonett – Source: DOI

    Major Enforcement Concerns

    Minister Bonett insisted that the proposals were not there to simply dish out money and would need to be accompanied by a “commitment” to the scheme. 

    Participants who leave the scheme before its expiration will be required to repay the government for the remaining years. 

    For example, someone leaving the Surrender Your Licence Scheme after three years would owe €10,000 to the government.

    However, in Malta, promises of robust enforcement often ring hollow. Transport Malta, which will be heavily involved in the scheme, has grappled with numerous scandals over the last few years. 

    Several people have been charged with leading a racket to ensure specific candidates obtain their driving licenses, allegedly telling instructors to “take care” of candidates flagged by “some ministry or Castille”. There have also been further allegations of Transport Malta officials running a similar racket on maritime fines

    More recently, Amphora Media has also revealed a series of suspicious cheques former Transport Malta CEO James Piscopo received while holding the role. Investigators suspect these could be tied to multi-million payments they believe are linked to the Kappara Junction and Malta Public Transport contracts.

    Has it worked abroad? Finding a Viable Long-term Solution

    Internationally, license surrender programs are rare precisely because they are expensive relative to their effectiveness. Schemes focusing on modal shifts (scooter and public transport subsidies) are more common due to their greater sustainability and better cost-effectiveness.

    Scooter incentives have worked effectively in countries with substantial scooter-friendly infrastructure like Italy and Spain. Ultimately, Malta would need significant investment in this area to replicate such success. 

    Rental scooters had become popular in Malta regardless, but the government issued a ban  – unprecedented in the EU – following widespread public outcry over their use.

    In 2024, motorcyclists and cyclists accounted for roughly 40% of all traffic-related injuries, hinting at a widespread issue that should be addressed before significant numbers are placed on the roads.

    Experts consulted by Amphora Media agree that Malta has squandered valuable time and resources fixating on an underground metro, a project which would require enormous infrastructural works and significant population growth—roughly 1,000,000 users—to even justify.

    Instead, experts pointed towards a significant shift from car-centric policies towards a focus that promotes public transport – and namely, substantial investment in a reliable, expansive bus network or the creation of a new light rail transport system.

    However, achieving these would necessitate difficult decisions, especially reconsidering on-road parking in crucial transit areas.

    Yet, implementing these solutions would require Malta’s government to adopt a tougher stance—more stick, less carrot.

    Questions will be raised about whether the government or the Minister would be willing to make that decision and sacrifice votes.

    Paris is among the cities that successfully moved from car-centric to people-centric design. 

    The Urban Institute in the US praises Paris’s “sustained drop in car use—as well as fewer crashes and less pollution.”

    The transformation started with lowering speeds in the city, closing former highways to cars and opening them up to pedestrians and cyclists, expanding pavements, and allowing residents to enjoy car-free areas on weekends. Paris also slowed or eliminated traffic around schools and freed up space by removing on-street parking in many areas. 

    As of 2022, personal cars remain the dominant mode of transport, but they no longer account for over half of the means of transport. The share of bus trips has doubled, and the share of bicycle trips has tripled between 2016 and 2022. 

    In 2023, Paris received the Sustainable Transport Award . The drive to reclaim the city’s iconic boulevards is called a ‘soft revolution’. Its popularity was boosted by participatory budgeting, giving residents a say in how to allocate the resources.

    These achievements were not easy. A court had overturned car bans, and hundreds came out in protest. But mayor Anne Hidalgo, who championed these policies, continues serving her second term undeterred.

    Perhaps, ultimately, those with a strong vision will have their way in the end.

  • Kappara Junction & Malta Public Transport: Investigators Trace Millions To Former Advisor Shiv Nair & Other Suspicious Payments To Then-Transport Malta CEO

    Kappara Junction & Malta Public Transport: Investigators Trace Millions To Former Advisor Shiv Nair & Other Suspicious Payments To Then-Transport Malta CEO

    By Joanna Demarco, Julian Bonnici and Daiva Repečkaitė.

    This story has been fact-checked by an independent fact-checker.

    • Investigators believe Spanish contractors involved in the Kappara Junction and Malta Public Transport channelled millions to the nephew of a former Spanish MP. The former MP is facing a corruption trial.
    • The nephew’s companies then allegedly transferred funds to blacklisted former Joseph Muscat government advisor Shiv Nair.
    • Former Transport Malta CEO James Piscopo received suspicious cheques from accountant Robert Borg the same year both contracts were awarded.
    • Transaction records seen by Amphora Media show:
      • Shiv Nair and his companies received €2.3 million net from an affiliated company allegedly part of the scheme.
      • James Piscopo received €30,000 in suspicious cheques issued by Robert Borg. He also received a net €10,000 from Borg through a separate account.
      • Spanish contractors of Kappara Junction sent €263,000 to a company owned by the nephew of the former Spanish MP.
    • Keith Schembri once used Yorgen Fenech to try to leak documents linking Piscopo to alleged payments.

    Multi-million payments issued to Shiv Nair, the blacklisted former advisor of Joseph Muscat’s government, are suspected of forming part of a kickback scheme on the Kappara Junction and Malta Public Transport contracts.

    Transaction records uncovered in an investigation by Amphora Media, MaltaToday, and Times of Malta reveal that Nair and his affiliated companies received a net amount of €2.3 million from Aitken Spencer Ltd – a company owned by his director’s brother that investigators believe is tied to the scheme.

    Meanwhile, investigators have also flagged a series of suspicious cheques issued to former Transport Malta CEO James Piscopo.

    Piscopo received €30,000 across nine cheques in 2015, the year the contracts for the Kappara Junction Project and the management of Malta Public Transport were awarded.

    The signing of the Kappara Junction Project with James Piscopo, Ministers Joe Mizzi & Edward Scicluna — Source: DOI

    Piscopo received the cheques from Robert Borg, an accountant and former secretary of Transport Malta who has served on numerous entities’ boards and councils.

    Borg has been charged in connection to the Vitals Global Healthcare case and has previously faced controversy for his lucrative earnings from the General Workers Union’s publicly-funded community work scheme.

    In seven of the nine cheques cashed by Piscopo, Borg was both the payer and payee – effectively writing them out to himself. They were then endorsed to Piscopo, who deposited them into his account. Investigators suspect this method was intended to obscure the transactions.

    Amphora Media has been informed of further payments between Borg and Piscopo’s Undecim Five Investments, a company he later renamed and which was eventually dissolved. Borg transferred €20,000 to Piscopo’s Undecim Five – while Undecim Five transferred €10,000 to Borg. 

    Piscopo confirmed that he received the payments from Borg, with whom he said he has a longstanding friendship. However, he insisted that the payments were linked to a consultancy firm he operated with Borg while serving as Transport Malta & Lands Authority CEO. He said taking those payments was “stupid” but not illegal and ultimately rejected any links to the alleged kickback scheme.

    He could not explain why the cheques were issued before the company’s creation – nor why Borg initially wrote the cheques out to himself. Borg refused to answer questions sent surrounding his transactions with Piscopo.

    Piscopo said that the Kappara Junction Project was fully audited and stressed he had little to no knowledge of who Shiv Nair is.

    Amphora Media found no financial records linking Nair and Piscopo. Borg disputed transaction records between himself and a Maltese company owned by Nair. He insisted that he had never met or had dealings with Nair.

    Nair refused to answer any questions about the claims.

    “I am a private businessman and not a public servant. Moreover, and perhaps more to the point, my companies have always conducted their activities in Malta and elsewhere in a regular and lawful manner and do not need to provide explanations with respect to their legitimate dealings,” he said. 

    James Piscopo and Robert Borg

    The Spanish Connection

    In 2015, Spanish-led contractors won two large infrastructure tenders. A consortium led by Constructora San Jose SA won a tender to build the Kappara junction, while Autobuses de Leon was chosen as the new private operator for the public transport system. On the surface, the tenders appear unrelated.

    Sources have revealed that Spanish authorities have reportedly identified a total of €5.14 million in transfers from the accounts of Constructora San Jose SA (the Spanish partner in the Kappara Junction joint venture) and a company called Malta Public Transport (the brand name of operator Autobuses de Leon, a sister company of  ALSA) to two companies in Spain: Hasaura Real Estate SL and Translock IT SL.

    The director of these two companies is Luis Carlos Yanguas Gómez de la Serna, the nephew of Spanish former MP Pedro Ramon Gomez de la Serna.

    Pedro Ramón Gómez de la Serna and another former MP, Gustavo de Arístegui, have been charged in Spain with heading a criminal organisation to obtain foreign contracts in a case that lists Constructora San Jose as a client company. 

    Malta Public Transport Buses

    ALSA is listed as a client of Voltar Lassen, a firm owned by Pedro de la Serna and Gustavo de Arístegui.  Malta Public Transport’s owner, Autobuses de Leon, is a sister company of ALSA group. ALSA emphasised that it was separate from Autobuses de Leon when responding to questions.

    In the Spanish police probe, Luis Carlos Yanguas Gómez de la Serna was found to appear to have acted as a “commission agent” for the company at the centre of the investigation.  Luis Carlos Yanguas Gómez de la Serna stopped working with Voltar Lassen in January 2014. He was not charged in connection to the case.

    Amphora Media has seen records of six transactions worth approx. €263,000 between Constructora San Jose and Hasaura Real Estate.

    Pedro Ramon Gomez de la Serna and his lawyer rejected any suggestions that he had any knowledge or connection with the alleged scheme – and stressed that Luis Carlos Yanguas Gómez de la Serna stopped working with Voltar Lassen before the transactions linked to Kappara Junction and Malta Public Transport – and had since set up an independent consultancy firm.

    Kappara Junction Source: DOI

    Transport Malta said that both the Kappara project and Malta Public Transport contract were audited by the European Commission and National Audit Office, respectively – it said none of the payments were mentioned and that it would not be privy to any of the payments mentioned in our questions. 

    Malta Public Transport categorically denied the claims. It said that Hasaura Real Estate SL & Translock IT SL provided “specific services required by MPT and provided to MPT by its suppliers” – and said these were in no way related to the awarding of the public transport concession. However, it did not respond to questions to clarify the services provided.

    Autobuses de Leon said that MPT signed an agreement with Hasaura Real Estate in 2015 to optimise the management of its fleet and later transferred it to Translock IT. It said it used this management software from March 2015 to June 2020.

    It rejected all wrongdoing and denied any knowledge of Nair.

    The ex-MP’s nephew Luis Carlos Yanguas said the payments involving his companies Hasaura Real Estate SL and Translock IT had nothing to do with his uncle. 

    Yanguas said the payments were part of a “client-supplier relationship”, and were backed up by all the necessary documentation and agreements. 

    Constructora San Jose’ insisted that it acts under the strictest legality. Constructora San Jose’ did not respond to questions as to why it was also issuing payments to Hasaura Real Estate.

    Shiv Nair – Source: Suez Holdings

    Payments allegedly flow from Spanish companies to Shiv Nair

    After arriving in the accounts of Yanguas de la Serna’s companies, a portion of the funds originating from Malta Public Transport was allegedly transferred to Shiv Nair through a Hong Kong-based company, Aitken Spencer Ltd.  

    Transaction records seen by Amphora Media show that between 2014 and 2020, Nair and his affiliated companies, Suez Group Finance and Suez Group Capital, received a net amount of €2.3 million from Aitken Spencer Limited.

    Aitken Spencer Ltd’s director and shareholder is Subodha Manahara Withanage. It was incorporated in Hong Kong on 27th January 2015, the same year the contracts were awarded.

    Withanage’s brother appears to be Rasika Withanage, a director at Nair’s Suez Capital, who has also held significant roles and worked in other companies linked to Nair. Amphora Media has seen transactions to Rasika Withanage, which are believed to be his salary.

    The Withanage mother’s residence is listed as the headquarters of Suez Holdings in Sri Lanka.

    Nair has been permanently blacklisted by the World Bank for fraud and corruption since 1999 – as exposed by Daphne Caruana Galizia in 2013. Still, he served as an advisor on energy and foreign direct investment within the government of Joseph Muscat. 

    At the time Nair denied the accusations, but the World Bank has confirmed to Amphora Media that the blacklisting still applies.

    Caruana Galizia had also reported on Nair’s connections to former MP Pedro Ramón Gómez de la Serna. Gomez de la Serna confirmed that he met Shiv Nair, but he described it as a coincidence.

    Source: DOI

    Kappara Junction and Malta Public Transport Contract Raised Red Flags

    Autobuses de Leon won a tender to take over the ownership and management of Malta Public Transport on 8th January 2015. Piscopo, who was Transport Malta’s CEO at the time, chaired the tender evaluation committee and oversaw the selection. 

    Eyebrows were first raised in 2014 when a visit by then-Transport Minister Joe Mizzi and Piscopo to Spain as part of the selection process for the new public transport operator was shrouded in secrecy.

    The National Audit Office later flagged the lack of documentation on negotiations between Transport Malta and the winning bidder as a concern. 

    The contract is valid until 2030.

    A week after the Autobuses de Leon takeover, the five potential bidders for the Kappara Junction were announced, with SJ Kappara JV, which involved Maltese partners, winning the bid in December of that year. The project cost was budgeted to cost €22.5 million and was inaugurated in January 2018. The final cost was estimated at around €35 million. 

    The project benefited from EU funding intended for less developed regions. Transport Malta even involved European Investment Bank experts to provide an “independent positive recommendation of the [Kappara Junction] project’s feasibility”.

    Malta Public Transport Buses

    Keith Schembri claimed James Piscopo received kickbacks from major projects 

    Allegations of Piscopo receiving kickbacks on infrastructural projects are not new. In December 2020, the Times of Malta revealed that the Malta police had launched an investigation into Piscopo.

    Read the story by the Times of Malta here

    According to reports in the Times of Malta, in 2019, former OPM chief of staff Keith Schembri attempted to use Yorgen Fenech to leak a story to the media, alleging that Piscopo had received a considerable amount of money.

    Schembri is believed to have provided Fenech with documentation showing Piscopo’s dealings, including his offshore account at Nedbank Private Wealth (formerly Fairbairn Private Bank) in Jersey. Schembri alleged that the funds held at the bank could be upwards of €600,000.

    Intelligence obtained by investigators suggests that Piscopo does hold a bank account at Nedbank Private Wealth (formerly Fairbairn Private Bank) in Jersey. 

    Piscopo served as the Labour Party’s CEO in the run-up to its 2013 electoral victory and was a key member of Joseph Muscat’s inner circle. He was appointed executive chairman of Transport Malta and then later the Lands Authority CEO following Labour’s rise to power but no longer holds that role.

    Apart from his job there as CEO, Piscopo also chaired the state’s utility billing company, ARMS Ltd, and sat on the boards of Enemalta and Projects Malta.

    Piscopo resigned soon after the claims were made public.

    Malta’s police declined to comment on the status of the investigation or whether an investigation was ever opened into the alleged kickback scheme involving the Kappara Junction and Malta Public Transport contracts.