Transport Malta wins €500,000 over contract breach, takes less than half

Transport Malta has waived more than half the sum of €500,000 it was owed in damages by an advertising agency over a breach of contract two decades ago. The recent out-of-court settlement came after the agency, MPS, objected to paying and filed an appeal, this newspaper has learnt. The case revolves around a 1995 tender, won by MPS, to place advertising boards on each side of route buses. The agency pulled out of the contract, complaining the job had turned out to be possible with only a fraction of the bus fleet. A Transport Malta spokesman declined to divulge the final amount paid by the agency, but sources said it was €200,000, just 40 per cent of the original sum awarded by the Civil Court in 2013. "Transport Malta negotiated an out-of-court settlement which was approved by its board and the Ministry for Finance," the spokesman said. Transport Malta said the agreement was reached because at the time the agency "could not pay up". However, MPS CEO George Mifsud has vehemently denied this was the case. He told this newspaper that following the judgment delivered by Mr Justice Silvio Meli, MPS, on the advice of two eminent lawyers, filed an appeal based on crucial new evidence...

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