The National Audit Office (NAO) has launched an investigation into Malita Investments Ltd following reports of cost overruns, delays in social housing projects, unpaid bills to contractors, and allegations of political interference.

Speaking on TVM's Xtra programme on Thursday evening, newly appointed Parliamentary Secretary for Affordable Housing Andy Ellul said he was informed by the permanent secretary that the NAO opened the investigation on Wednesday. Ellul said the government would "collaborate fully" with the probe to ensure that "any allegations can be cleared."

Ellul assumed responsibility for the affordable housing portfolio last weekend after former minister Roderick Galdes resigned on Saturday evening.

Galdes had faced mounting controversy since late November, when former Malita Investments chairperson Marlene Mizzi accused him of interfering in the operations of the publicly listed company and of "hobnobbing" with contractors engaged on its social housing projects. Malita Investments has denied that any of its decisions were influenced by political interference.

Malita Investments is a public company that is 80% state-owned. It was originally established as a special purpose vehicle to help finance major public infrastructure projects, but in recent years its focus has shifted primarily to social housing developments.

Over the past 18 months, the company has faced serious financial difficulties due to major cost overruns and delays on a large social housing project in Luqa, which received millions of euros in EU funding. These issues left the company illiquid, prompting several contractors to file court cases claiming they are owed millions of euros for work carried out on the project.

The turmoil has also led to significant leadership changes. Executive chairman Johan Farrugia resigned just months after taking on an executive role in 2025, while the company's CEO and CFO also stepped down earlier this year.

Earlier this month, Malita appointed Marlene Attard as its new chief executive officer and Stephen McCarthy as chief financial officer. Chief operating officer Amanda Desira will remain in her role. Meanwhile, chairman Marvin Gaerty, who was appointed late last year, will transition from an executive position to a non-executive role.