Maritime industry lobby fine with new TM CEO’s potential conflicts of interest

The Malta Maritime Forum industry lobby group finds no problem with the fact that the government has appointed its own executive board member and maritime business owner, Jonathan Borg, as the industry’s new regulator.

The Forum, which normally supports a distinction between operators and regulators, has welcomed Borg’s appointment as Transport Malta’s chief executive officer.

Up until his appointment, Borg was an active member of the MMF’s executive board until the appointment and is also the owner of marine and infrastructure industry player the Bluhull Group.

While many in the industry shared their concerns with The Shift about the fact that the regulator is now headed by a person with a personal business interest in the decisions taken by Transport Malta, MMF CEO Kevin Borg downplayed those concerns.

“Upon being nominated CEO of Transport Malta, Jonathan Borg resigned from the Board of Directors of MMF and from his private maritime business,” Kevin Borg told The Shift.

“This he did in order to concentrate solely on his new role. His nomination had the unanimous support of the Board of Directors of MMF and we can confirm that we have not received any comment to the contrary from any MMF member.”

When The Shift pointed out that the CEO’s resignation from his private interests was merely a paper transaction since his roles were transferred to his wife and that he is still a maritime business owner, the MMF CEO declined to comment.

The Shift has previously reported how eyebrows were raised among maritime industry operators, including MMF members, when the government announced the Bluhull Group’s owner was to be made the industry’s regulator.

When it comes to the maritime section of Transport Malta’s operations, Borg may be called upon to choose between his own business interests and those of the country.

Among Borg’s business activities, for example, is the securing of various Transport Malta permits for his clients, including some related to a private port agency.

Borg had been handpicked for the job by Transport Minister Aaron Farrugia. The two are known to be close and Farrugia had already appointed Borg to the lower-key role as Yachting Malta chairman.

Borg replaces Brigadier Jeffrey Curmi who was ousted from the CEO post less than a year after his appointment, which had been made on the direct order of Prime Minister Robert Abela.