Two men abusing rules to pack in foreign workers in Sliema apartment hunted for unpaid debts

Two men, who, until a few weeks ago, operated an apartment in a prime Sliema area as an illegal dormitory, exploiting dozens of Nepalese and Indian migrants, are being pursued by various companies for significant unpaid debts.

Peter Frendo, who, according to the apartment’s owners, was the brains behind this exploitation, last February was found guilty by the Civil Court of failing to make payments on several Banif Bank loans and ordered to pay almost €1.5 million in outstanding debts.

Frendo, 41, registered as living in Għargħur, and until a few weeks ago, a franchise owner of real estate company Alliance, admitted non-payment of the loans.

In a separate case instituted by real estate agency Belair, Frendo was also found guilty last July of not honouring a payment of some €65,000 in commission owed following the sale of a property.

Once again, Frendo did not contest the claim and was ordered to pay his outstanding dues.

The Shift is also informed that Frendo is also being sought by other companies and the Tax Commissioner for various other outstanding payments running into tens of thousands of euros.

Meanwhile, the apartment owner in Sliema’s prestigious George Borg Olivier Street, Twanny Bugeja, also faces financial trouble. The court has asked his company, Allwoods & Steel Properties Ltd, to pay EPG Financial Services Ltd an outstanding payment of more than €51,000.

While the two are being pursued to pay their outstanding debts, The Shift reported how, through an apartment in Sliema, they were exploiting low-wage third-country nationals by renting them a bed for €250 a month.

Bugeja and Frendo packed the three-bedroom apartment with more than 40 low-wage foreign workers, raking in some €10,000 a month. At one point, two flats in the same block were being run this way while residents’ complaints fell on deaf ears.

Bugeja, the owner of the apartment, had shrugged off any responsibility and insisted that the apartment’s original tenant, Frendo, was packing his apartment with foreign workers. Yet it seems Bugeja was aware of what was happening inside the apartment.

On his part, Frendo defended his actions and said that all was being done according to the rules.

Soon after The Shift’s report, the Planning Authority issued an enforcement notice against Bugeja’s company, Allwoods & Steel, and Frendo for turning a residential unit into an illegal hostel without a permit.

The apartments were emptied shortly after.

The Shift reported how Bugeja’s son, Karl, a shareholder in the same company owning the apartment, was an insider of the Labour Party and has worked with various government ministries over the past years.

Similar exploitation of low-wage third-country migrants has been reported in many other parts of the island, with small apartments and houses hosting tens of residents in very precarious and unhygienic conditions.

So far, the authorities have taken little action to ensure laws are followed by landlords or those engaging in exploitation are brought to justice.

Right of Reply received from Twanny and Karl Bugeja

Anthony Bugeja and Karl Bugeja, would like to make reference to the article published on 14 September 2023 at 07:36 titled, ‘Two men abusing rules to pack in foreign workers in Sliema apartment hunted for unpaid debts’:

The title of the article states that “Two men abusing rules to pack in foreign workers in Sliema apartment hunted for unpaid debts” is misleading and incorrect on two counts:

Firstly, the apartment was let by Allwoods & Steel (Property 2) Limited to Mr Peter Frendo who consequently sub-let it to foreign workers. Neither Anthony Bugeja, nor Karl Bugeja were aware of the number of persons residing in the apartment, and this as shall be explained in this right of reply being exercised by Anthony and Karl Bugeja.Secondly, the title of the article implies that Anthony and Karl Bugeja are being hunted for unpaid debts. There is absolutely no one hunting Anthony and Karl Bugeja for any unpaid debts.

The article later states that “the apartment owner in Sliema’s prestigious George Borg Olivier Street, Twanny Bugeja, also faces financial trouble. The court has asked his company, Allwoods & Steel (Property 2) Limited, to pay EPG Financial Services Ltd an outstanding payment of more than €51,000.”The Court has first and foremost not asked (at most, a court would order, not ask) Allwoods & Steel (Property 2) Limited to pay anything, and  having said that, nor has EPG Financial Services Limited asked the Court to make such an order.

On the contrary, it is Allwoods & Steel (Property 2) Limited that is asking the Court to order EPG Financial Services Limited to pay it the total sum of € 57,112. This was again, very easily verifiable by The Shift in the course of their investigation. The case in question is currently pending before the Rent Regulations Board.

With reference to the main point in the article about the persons residing in the Sliema apartment, whilst being aware that Mr Frendo was sub-letting the property, as was his right to do, Anthony and Karl Bugeja were absolutely not aware that there were 37 persons residing in it.

After this case became public through other media outlets, Anthony Bugeja was contacted by the Planning Authority and the Environmental Health Authorities who requested that action be immediately taken to remedy the situation, and this apart from issuing Enforcement Notices as soon as the report had been made. Various other authorities later made contact with Anthony Bugeja as well.

Contrary to what is written in the abovementioned article published on this website, Mr Bugeja did not shrug off responsibility but exercised his rights at law and judicial action was immediately taken against Mr Frendo.

A judicial letter (2443/2023) was filed on 9 June demanding the termination of the lease agreement and for Mr Frendo to return the keys to the apartment. Since this proved to be unsuccessful, a claim was filed before the Rent Regulations Board requesting the eviction of Mr Frendo, the return of the keys and the payment of damages suffered to the apartment. The application bearing number 379/2023JG has been scheduled for a hearing on 4 October 2023 at 13:30pm. All of this information is public information which could have been, and still is, easily verifiable.

As of the date of this news article, there is no active enforcement notices against the property in question, whilst the case before the Rent Regulations Board whereby Mr Frendo’s lease agreement is terminated is, as explained above, still pending.