CEO Claudio Grech becomes the latest in a spate of high-level resignations to cripple the multi-million ITC project in Rinella, proving MaltaToday’s predictions correct despite
vehement denials by ministry officials
Charlot Zahra
Monday’s resignation of Smart City CEO Claudio Grech confirms previous MaltaToday reports that “something is rotten” in a futuristic IT project that was supposed to generate 5,000 jobs by 2012 – despite numerous and vociferous denials that the same project was facing serious management and financial problems.
Grech tendered his resignation last Monday, and in an atypical move by a departing political appointee, declared that his decision had been motivated by “diverging operating views”.
“Over the last weeks I have discussed my decision with the shareholders to whom I have explained the reasons motivating my resignation,” Grech said in a statement on Monday.
“Although this separation is unfortunate, I should make it clear that my resignation should not signify a dent to or doom of the Project. Although I have contributed enormously to what it is today, SmartCity Malta is much larger than any individual and this should be kept constantly in mind at this sensitive juncture.
“Moreover, I have no reason to doubt that the shareholders will sustain their investment in the project and hence I sincerely hope that the project will take shape as originally intended.”
This latter hope, however, appears to now be in serious doubt.. Grech’s departure on Monday was in fact the latest in a whole series of top-brass resignations from the ill-fated ICT project, affecting key areas including financial management, project management and design.
On Sunday, it was reported that Antoine Portelli, the project’s Chief Financial Officer, had also resigned. He had tendered his resignation during the week.
The resignation followed those of SCM’s senior project manager Martin Attard Montalto and its infrastructure manager Joseph Anastasi a few weeks ago.
The project’s management in Dubai also appeared to have dismissed its architects Arquitectonica and has appointed Paul Camilleri as its architect. Arqiutetoinca is a leading international architecture, interior design and planning company.
Camilleri was Arquitectonica’s local representative for the SmartCity Malta project, until high ranking Smart City officials in Dubai unceremoniously and abruptly terminated Arquitectonica’s contract.
It is understood that Arquitectonica had been commissioned by SmartCity Dubai to draw up the architectural plans for all of SmartCity Malta.
At the time, Paul Camilleri and Associates was appointed by Arquitectonica as its local representative to work alongside its own team based in Malta.
In the meantime, foreign officials employed with Bovis International, the company engaged by SmartCity to oversee the project, continued to approach local architectural firms in an attempt to engage their services instead of Arquitectonica.
This has raised even more eyebrows following the direct appointment of Camilleri to oversee the project.
A few days ago Finance Minister Tonio Fenech unexpectedly acknowledged that the SmartCity project had indeed slowed down in the first half of the year, citing the international recession as the cause.
The admission however was in stark contrast with Dubai’s message delivered to the President of Malta during a recent visit to the Emirate.
While the global financial turmoil might have affected the pace of the local project to a certain extent, differences between SmartCity Dubai and Arquitectonica played a significant role in the delays experienced so far, among which was the fact that SmartCity has not applied to the Malta Environment and Planning Authority for any further building developments, save those related to the project’s first phase (SCM-1) and some infrastructural work.
Industry analysts were quoted as saying on condition of anonymity that Grech had last year managed to form a top notch management team for what was at the time billed as the largest private single investment on the islands.
The same analysts expressed perplexity at the fact that all the key people, including the CEO himself, have resigned from their posts, which clearly point towards major organisational issues.
It was sister Maltese paper Illum that in a report on 5 July 2009 had first revealed that there were serious problems with the SmartCity Malta project after an onsite inspection reveled that little construction work was still going on site.
Sama Dubai, which joined Tecom to launch the pharaonic IT project in Malta, had been mentioned in news of a surprise merger with major developer Dubai Emaar Properties PSC. Sama Dubai was one of three companies owned by the Sultan of Dubai entering into the merger.
Operators in the Dubai Real estate market welcomed the merger as a move to take a significant number of properties off the glutted Dubai market while shareholders of Emaar Properties viewed it with less enthusiasm and that company’s shares fell by 10% following the announcement of the merger.
The moves to consolidate in Dubai led to fears that the Malta Smart City project could follow in the steps of its twin, Smart City India, which had just folded. Despite its loud launch years before, there is little evidence on the ground in Malta that the project is under way.
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