XYZ Architecture given €350K deal without competition

Project Green’s recent awarding of a €350,000 contract to XYZ Architecture and Design, partly owned by former Labour Party Deputy Leader Daniel Micallef, has renewed concerns regarding openness and responsibility in public spending. The agreement was granted without any form of competitive tender, raising concerns over favoritism and procedural irregularities.

The contract pertains to the redevelopment and “greening” of a square in San Ġwann—an initiative that has been publicly promoted for more than two years, yet remains mired in regulatory delays due to the absence of a planning permit.

Selection of XYZ Architecture raises transparency concerns

Project Green, the government agency tasked with implementing green infrastructure initiatives, handpicked XYZ Architecture and Design to provide architectural services for the San Ġwann square project. The firm's involvement, and particularly the method through which it was selected, has drawn significant criticism from civil society actors and independent watchdogs.

Founded in 2013 shortly after the Labour Party regained governance, XYZ Architecture and Design is jointly owned by Daniel Micallef and fellow architects Daniel Camilleri and Janice Fiorentino. Over the past decade, the firm has become increasingly prominent in the public sector space, acquiring numerous contracts awarded directly by government departments and agencies without public calls for tenders.

This latest €350,000 contract, reportedly for architectural and project design services, follows a pattern that critics argue undermines fair competition and the principles of good governance.

Project announced, but implementation delayed

Environment Minister Miriam Dalli initially unveiled the San Ġwann project in 2023. It includes a multi-layered urban development plan featuring a three-storey underground car park and a transformation of Misraħ Lewża and surrounding roads into green public spaces.

However, to date, the Planning Authority has yet to grant the necessary permits. The initial planning application filed by XYZ Architecture and Design in 2023 is still awaiting approval. Furthermore, an additional application that would be required to complete the full scope of the project has not yet been filed.

Despite the absence of formal planning approval, the substantial public contract has been awarded to the same firm that designed the unapproved proposal, raising further questions about the basis upon which the award was made.

Micallef’s role under public scrutiny

Daniel Micallef, a known figure in local politics, previously served as Deputy Leader for Party Affairs within the Labour Party. Although no longer holding public office, Micallef's political affiliations and professional dealings continue to attract public attention—particularly when intertwined with state-sponsored projects.

According to earlier reports by The Shift News, Micallef was responsible for designing the original San Ġwann proposal for Project Green, which initially featured an underpass. That feature has since been scrapped, but the relationship between Micallef’s firm and Project Green has persisted.

It remains unclear whether any remuneration was provided to XYZ Architecture for the preliminary and revised designs produced over the past two years. No official clarification has been issued as to whether the newly announced €350,000 agreement covers all previous work, or whether additional compensation was made under separate arrangements.

Project Green and past controversies

This is not the first instance in which Project Green has come under scrutiny for its procurement practices. Early initiatives by the agency included a €1 million direct order awarded to an individual known for their close ties to the Labour Party. The lack of competitive procedures in such high-value contracts has repeatedly been called into question by transparency advocates and opposition politicians.

Project Green's CEO, Joseph Cuschieri, also carries a controversial past. Cuschieri was compelled to step down from his position at the Malta Financial Services Authority (MFSA) amid allegations of misconduct. His re-emergence in a senior public role has further fueled criticism regarding standards of governance in public appointments.

Lack of competitive bidding and public accountability

The practice of issuing direct orders—bypassing the competitive tendering process—is permissible under certain conditions in public procurement law. However, it is expected to be used sparingly and only in cases where specific criteria are met, such as emergencies or unique technical requirements. The repeated use of direct orders in high-profile projects has raised concerns over their misuse as a means of rewarding political allies or avoiding public scrutiny.

Transparency campaigners argue that the €350,000 contract to XYZ Architecture is emblematic of a broader pattern in which lucrative public sector contracts are increasingly awarded to firms with direct or indirect political affiliations, often without sufficient justification or competition.

A firm built on public contracts

Founded in 2013, shortly after the Labour Party came into government, XYZ Architecture and Design has seen marked growth through its involvement in public sector initiatives. Among its recent undertakings is the redevelopment of Buġibba’s main square—a project that was initially budgeted at €1.7 million but has since ballooned to over €10 million.

The significant escalation in costs, combined with the absence of competitive tendering in some aspects of that project, has prompted accusations of financial mismanagement and cost inflation.

As the San Ġwann project moves forward—pending planning approval and additional permits—concerns persist about how public funds are allocated, who benefits from them, and whether the system operates with adequate checks and balances.

Calls for greater oversight and reform

Opposition members, NGOs, and members of the public are increasingly demanding stronger oversight of public procurement, particularly in projects with environmental and urban development implications. They argue that without transparency and proper governance structures, the very purpose of “greening” initiatives could be undermined by poor financial and ethical practices.

Legal experts also warn that continued reliance on direct orders could expose the state to potential legal challenges, particularly from companies that may have been eligible to compete for contracts but were never given the opportunity.

While no explicit legal wrongdoing has been confirmed in the award of the €350,000 contract to XYZ Architecture and Design, the absence of competition, coupled with existing political affiliations, raises important ethical questions.

Conclusion

The awarding of a €350,000 direct order to XYZ Architecture and Design by Project Green raises fundamental concerns about transparency, accountability, and the ethical administration of public funds. While the legal framework permits direct orders under specific conditions, the growing pattern of such awards to politically connected firms has increasingly drawn scrutiny from civil society, legal experts, and the broader public.

In the case of the San Ġwann project, the absence of a planning permit, the lack of competitive bidding, and the prior political role of one of the firm’s co-owners—Daniel Micallef—have intensified suspicions of favoritism and procedural opacity. These issues not only risk undermining public trust in green infrastructure initiatives but also highlight the urgent need for stronger oversight mechanisms in public procurement.

As Malta continues to invest in urban renewal and environmental projects, it is imperative that these efforts be guided by principles of fairness, transparency, and good governance. Only then can such initiatives serve their intended purpose—enhancing public spaces and improving quality of life—without being overshadowed by allegations of impropriety or political patronage.

FAQs

Who owns XYZ Architecture and Design?
XYZ Architecture and Design is co-owned by Daniel Micallef, Daniel Camilleri, and Janice Fiorentino.

What is the San Ġwann project about?
The San Ġwann project involves the redevelopment of Misraħ Lewża and nearby areas, including a three-storey underground car park and green public spaces.

Was the €350,000 contract awarded through a public tender?
No, the contract was awarded directly without any competitive tendering process.

Does the project have planning approval?
As of now, the Planning Authority has not granted approval for the proposed development, and an additional application required to complete the project has not yet been submitted.

What is Project Green?
Project Green is a government agency responsible for implementing green infrastructure and urban sustainability projects in Malta.

What role does Daniel Micallef play in the project?
Although no longer a public official, Micallef co-owns the firm awarded the contract and was previously involved in designing the project proposal.

Has XYZ Architecture worked on other government projects?
Yes, the firm has been involved in several public sector projects, including the redevelopment of Buġibba’s main square.

Why is the contract controversial?
The controversy stems from the lack of a competitive process, the political affiliations of the firm’s owners, and the absence of planning permits.

Who is Joseph Cuschieri?
Joseph Cuschieri is the CEO of Project Green and previously served as CEO of the MFSA before resigning under pressure due to misconduct allegations.

Is the €350,000 payment final or part of a broader arrangement?
It is not clear whether the payment includes compensation for previous design work or future project management responsibilities.