Several stalled social housing projects may finally receive a financial lifeline, with Malita Investments plc announcing it is close to securing a new multi-million euro loan from an undisclosed financial institution.

The company said it has obtained a “sanction letter”, signalling that funding approval is imminent and potentially allowing long-delayed works in Ħal Farruġ, Luqa and Bormla to resume in the coming weeks.

Key details remain unclear.

Malita has not disclosed the identity of the lender, the total value of the loan, or a timeline for when construction will restart and projects will be completed.

Sources within the Finance Ministry have indicated that the financing could amount to several million euros and may involve Bank of Valletta, a bank where the government has significant control,  though negotiations are reportedly still subject to government guarantees and state aid issues.

The latest development follows months of uncertainty after contractors halted works nearly a year ago when the government’s publicly listed entity ran out of funds.

The projects, intended to provide affordable housing to vulnerable families, were originally due for completion several years ago.

In Bormla, some prospective tenants had already been informed by disgraced former Minister Roderick Galdes, as far back as 2022, that they had been allocated apartments – units that remain unfinished and in shell form.

Malita’s financial difficulties have been compounded by governance concerns and controversy surrounding political interference.

Former chair Marlene Mizzi publicly accused former housing minister Roderick Galdes of interfering in the company’s operations and maintaining close relationships with contractors involved in the projects.

These allegations were never fully investigated, even though later reports pointed to the former Minister acquiring real estate from the same contractors at significantly below market prices.

The Shift had also revealed that Malita’s board approved a 16% increase in directors’ remuneration during the height of the company’s liquidity crisis.

As negotiations over the new loan approach their conclusion, unfinished housing units remain in limbo, and families who were promised homes years ago continue to wait.

Responsibility for Malita has now been shifted to Parliamentary Secretary Andy Ellul under the guidance of the Prime Minister.