Direct orders for Project Green offices raise scrutiny concerns

Environment Minister Miriam Dalli has approved two direct orders with a combined value exceeding €450,000 for the leasing of office space for Project Green and the Climate Action Authority. The agreements relate to temporary premises at Avenue 77 Business Centre in Mrieħel’s Central Business District and have attracted attention due to their value timing and procurement method.

Both entities currently operate from the same commercial location, with the leases formalised through direct orders rather than open competitive tenders. While direct orders are legally permissible under Maltese procurement rules in limited circumstances, their repeated use by public entities often invites questions around transparency value for money and long term planning.

The Government Gazette confirms that Project Green committed €289,860 for its lease. However, the published documentation does not specify the duration of the agreement or clarify whether renewal options exist. In contrast, the Climate Action Authority confirmed clearer terms for its own lease though it too relied on a direct order rather than an open call.

Leasing arrangements at Avenue 77 Business Centre

Avenue 77 Business Centre is situated in Mrieħel, an area that has increasingly positioned itself as a hub for government agencies professional services and corporate offices. The building is owned by Paradocs BIS S.A.R.L., a company registered in Luxembourg.

Publicly available corporate profiles describe Paradocs BIS S.A.R.L. as a privately owned investor company with an affiliate presence in Malta and additional connections to holding structures operating across both jurisdictions. There is no public indication that the ownership structure breaches Maltese procurement rules. Nonetheless, the involvement of cross border holding entities often raises public interest questions regarding transparency and due diligence.

Both Project Green and the Climate Action Authority occupy office space at this location as part of what officials describe as temporary accommodation solutions while longer term plans are considered.

Project Green lease details remain limited

According to the Government Gazette, Project Green spent €289,860 on its temporary lease at Avenue 77. Beyond the financial figure, no further information was provided regarding the length of the lease or the criteria used to justify a direct order.

This lack of detail contrasts with a previous public call issued in 2023 when Project Green sought office space with an estimated cost of €2 million over five years. That call was issued under the leadership of former Project Green chief executive Steve Ellul, who later contested the European Parliament elections on behalf of the Labour Party without success.

The earlier call appeared to indicate a longer term strategy for the agency’s accommodation needs. However, that process was ultimately not concluded and the entity has instead opted for a temporary lease through a direct order. No public explanation has been provided as to why the original call was discontinued or placed on hold.

Climate Action Authority explains temporary move

The Climate Action Authority has offered a more detailed explanation regarding its own lease. A spokesperson confirmed that the authority is renting office space at Avenue 77 for a total of €166,200 covering a one year period. The agreement includes the possibility of a six month extension should operational needs require it.

“The temporary move was necessary due to the Authority’s growth and increasing staffing needs. A call to multiple premises aligned with sustainable and green certification requirements was issued, with proposals received and assessed in line with estimated procurement values and standard procurement procedures,” the spokesperson said.

The authority has also stated that it intends to formally launch a public tender next year in order to secure longer term office accommodation. This suggests that the current lease is positioned as an interim measure rather than a permanent solution.

Growth pressures within the Climate Action Authority

The Climate Action Authority is a relatively new entity tasked with coordinating national climate policy monitoring emissions and advising government on mitigation and adaptation strategies. Despite the urgency of Malta’s climate commitments, the authority has faced criticism over its limited public profile and perceived lack of impact.

The agency is led by engineer Abigail Cutajar, who was appointed chief executive officer in October 2024. Prior to her appointment, Cutajar was already on the public payroll as a person of trust earning approximately €70,000 per year. She was also known for her role as one of Minister Miriam Dalli’s canvassers during the most recent general election.

Such appointments are lawful within Malta’s governance framework. However, they often attract scrutiny due to concerns about perceived political proximity and the importance of safeguarding institutional independence particularly in regulatory and policy driven bodies.

Project Green’s expanding role and public expectations

Project Green has evolved into a prominent arm of the government’s environmental messaging. Positioned as a flagship urban greening agency, it plays a central role in Minister Dalli’s efforts to demonstrate tangible environmental action to the electorate.

The agency has been highly visible in public announcements promotional campaigns and project launches. Yet its performance record has drawn criticism. Throughout 2024, Project Green promoted a total of 98 projects but concluded only 19 within the same period.

Supporters argue that many projects involve complex planning approvals and long term implementation phases. Critics counter that the gap between promises and delivery risks undermining public trust particularly when substantial public funds are involved.

Leadership changes and recruitment decisions

Project Green has also attracted attention due to changes in its leadership and internal structure. Following the departure of its previous chief executive, the agency came under the leadership of former MFSA chief executive Joseph Cuschieri.

Cuschieri’s appointment itself was controversial due to the circumstances surrounding his exit from the financial regulator. While his role at Project Green is lawful, it has been widely debated in public discourse.

One of his first major decisions as chief executive was to approve expenditure of approximately €1 million to recruit 19 new managers. The average salary for these positions was reported to be around €56,000 annually.

Several of the recruits were reportedly linked to Cuschieri’s past tenures at the Malta Financial Services Authority and the Malta Gaming Authority. While such professional networks are not inherently improper, they have contributed to public perceptions of patronage within state entities.

Questions around governance and oversight

The expansion of staffing levels and management roles at Project Green has raised questions regarding governance structures and oversight mechanisms. Observers have questioned whether the agency’s organisational growth is proportionate to its output and delivery capacity.

The use of direct orders for office leasing further adds to this debate. Direct orders are intended to address urgent or exceptional circumstances. Their use for sizeable financial commitments can lead to calls for greater justification and documentation.

Government officials have consistently maintained that all procedures followed were in line with existing procurement regulations. Nevertheless, transparency advocates argue that more detailed disclosures would help reinforce public confidence.

Public parks data and urban green space concerns

Concerns about Project Green’s effectiveness have also been fuelled by data relating to public parks and green spaces. An investigation published by The Shift highlighted discrepancies in the official government database listing 217 public parks across Malta and Gozo.

According to that investigation, approximately one third of the listed parks were comparable in size to a five a side football pitch. Furthermore, around 80 percent of the sites categorised as parks covered less ground than a standard eleven a side pitch.

These findings have prompted debate about how green space is defined measured and communicated to the public. While small urban green areas can provide local benefits, critics argue that presenting them as full parks risks overstating progress in addressing Malta’s lack of open space.

Environmental credibility under continued examination

The leasing decisions for Project Green and the Climate Action Authority form part of a broader conversation about environmental governance public spending and accountability. Malta continues to face challenges in meeting climate targets managing urban development and expanding meaningful green infrastructure.

As environmental agencies grow in size budget and visibility, expectations regarding transparency and results also increase. Temporary office arrangements may be operationally justified. However, repeated reliance on direct orders and limited disclosure can undermine public confidence even when actions are lawful.

The coming year may prove decisive as the Climate Action Authority prepares to issue a public tender for permanent premises and Project Green continues to advance its project pipeline. Greater clarity around procurement decisions staffing structures and measurable outcomes is likely to remain central to public scrutiny.

Conclusion

The leasing of office space for Project Green and the Climate Action Authority through direct orders highlights broader issues surrounding governance planning and public confidence in environmental administration. While the arrangements appear to comply with existing procurement rules and are presented as temporary operational measures, the scale of the expenditure and the limited public detail provided have drawn understandable scrutiny.

As Malta continues to face mounting environmental challenges, the effectiveness credibility and transparency of its environmental institutions remain under close examination. Public entities tasked with climate action and urban greening carry a heightened responsibility to demonstrate not only legal compliance but also prudent use of public funds and measurable outcomes.

Greater clarity around procurement decisions long term accommodation strategies and performance indicators would help reinforce trust and reduce perceptions of opacity. In the absence of such transparency, even lawful decisions risk being viewed through a critical lens. The coming period will therefore be important in determining whether these agencies can align their operational growth with tangible environmental progress and accountable public administration.

FAQs

What are direct orders in public procurement?
Direct orders are procurement mechanisms that allow public entities to acquire goods or services without an open tender under specific legal conditions.

How much was spent on office leases for the two agencies?
The combined value of the two direct orders exceeds €450,000 with Project Green spending €289,860 and the Climate Action Authority €166,200.

Where are the offices located?
Both agencies are renting office space at Avenue 77 Business Centre in Mrieħel’s Central Business District.

Who owns Avenue 77 Business Centre?
The building is owned by Paradocs BIS S.A.R.L., a company registered in Luxembourg with affiliated entities in Malta.

Why did the Climate Action Authority move offices?
The authority cited growth and increasing staffing needs as the reason for its temporary relocation.

Is the Climate Action Authority planning a public tender?
Yes, the authority has stated that it intends to launch a public tender next year for longer term office accommodation.

Who leads the Climate Action Authority?
The authority is headed by engineer Abigail Cutajar, who was appointed chief executive officer in October 2024.

How many projects did Project Green complete in 2024?
Project Green concluded 19 projects out of 98 that it promoted during the year.

Why has Project Green faced criticism?
Criticism has focused on project delivery rates staffing decisions and perceptions of political patronage.

Are the leasing decisions considered unlawful?
There is no indication that the leases breach procurement law, though questions have been raised about transparency and planning.