Issue link: https://maltatoday.uberflip.com/i/1519405
2 maltatoday | SUNDAY • 21 APRIL 2024 NEWS WT Global replies to MaltaToday's report that took a deep dive into company accounts The following is a verbatim re- action received from WT Glob- al Ltd to last Sunday's article 'Revealed: Malta's largest cab supplier's murky accounts'. WT Global welcomes any fair scrutiny as it is proud to have been an innovative disruptor in the transport sector in Mal- ta after this remained stagnant and milked local consumers by charging higher prices for many years. One would hope that your newspaper will now also examine the operations of legacy providers who have benefited from lack of nimble competition for many years. There is hardly anything "re- vealing" in your article since it is based on the company's pub- lished accounts. Rather, the one sided and limited analysis it offers points at either an am- ateurish review or an ulterior agenda to the article. We will first reply to the spe- cific points which you men- tion. - This might be the first time that a company is attacked for being well managed. Nev- ertheless, the article makes a number of wrong assump- tions, which includes that cost of sales are the only costs in- curred, with no attention to indirect costs which went up by 25% in parallel with sales growth. - The article takes WT Global in isolation without adequate notice to it relations with sister companies in the group which supply most of the labour force. This omission leads to a series of wrong conclusions, including on wages paid. - The group employs more than 700 employees and one can rest assured that if the in- accurate wage levels you quote were correct, we would not only be in breach of law, but it would be impossible for us to retain any member of our workforce given the compet- itive and challenging labour market environment in Malta. - We are proud that not on- ly we manage to retain most of our employees, but we cur- rently have a waiting list of around 500 individuals work- ing for other providers and who have registered an inter- est to work with us. We are sure that this is because of the reputation we enjoy amongst third country nationals of be- ing a group that embraces cul- tural diversity, trust, fairness, professional development, and compensation. That might al- so be driven by the fact that the owner is a third country national himself that has made Malta his home. - The impression that any of our companies pays below statutory wages is totally un- founded. Our pay scales are all in line with Maltese legislation. - Your reading of our Fuel Policy also shows lack of infor- mation or that you have been misinformed. This policy is a key issue for our employees as it ensures that they have a sufficient cash flow and nev- er run out of pocket to assure business continuity. Your ar- ticle wrongly extrapolates one single payslip without taking in consideration the periodic business fluctuations. - The group is committed to Malta in the long term. A clear sign of this is that contrary to many players in the industry, it has embarked on a signifi- cant asset investment strate- gy. Amongst other things, the group owns rather than rents its fleet. - The group is fully tax com- pliant and has the necessary clearance certifications by competent authorities. Given the increase in revenues, it is normal that authorities take more interest in particular subjects and we are fully co- operative and confident in this process. - The group is fully commit- ted to comply with existing and forthcoming legislative updates in the transport sec- tor. The fact that you quote an interview by a sector rep- resentative and then try to attribute the term "non-com- pliant" to us is not only mis- leading (since the interview did not in any way mention the group) but also totally in- correct. In fact, we have an in- house team dedicated exclu- sively to compliance with such legislation. Finally, apart from the in- accuracies we pointed out above, there is a more serious issue that needs to be pointed out in your article. This is the clear dog whistle approach. It is reminiscent of recent media stories involving other unrelat- ed individuals, trying to depict the owner as an irresponsi- ble foreigner trying to take an unfair advantage in a sector and running a shady business, while living the good life. The owner is grateful of hav- ing received refugee status in Malta after he fled war in Libya in 2011. He has a clean criminal record and has always paid his taxes in full as a local business, without any reduction. He has built a successful business de- spite regular racial abuse by a minority. On the other hand, he has found an open heart and door by most Maltese and does his best to support fellow Maltese and foreigners in the country. It is quite disappointing that a newspaper whose editori- al policy is usually one of the most progressive in the coun- try, has lent itself to play into such deplorable narrative that only fuels stereotypes. Editorial note WT Global was given the opportunity to reply to each of the pertinent observations made before the article was published but regrettably the company chose to ignore the questions sent to it by Malta- Today. This newspaper rejects the spurious suggestion that its reporting was in anyway moti- vated by racial considerations. MaltaToday has consistently embraced diversity and taken a stand against racist and xenophobic behaviour from wherever it may come. The reporting was a deep dive into the accounts of the largest cab supplier and its rapid growth over the past couple of years. The cab market has been at the centre of public controversy for some time and thus the ex- ercise was wholly justified from a public interest perspective. 6 maltatoday | SUNDAY • 14 APRIL 2024 NEWS WT Global: Impressive profits, but dismal wages CONTINUED FROM PAGE 1 WT Global has seen impressive revenue levels over the years. Be- tween 2019 and 2020, the compa- ny grew its revenue by a whopping 493.9%. More recently, between 2021 and 2022, the company's turnover increased by 98%. Ac- cording to the company's financial report, its revenue comes from the provision of food delivery and taxi services, and the operation of a Floriana bar. The company also enjoys an impressively low cost of sales. In 2022, it only registered cost of sales worth only €10,913, resulting in a gross margin of 99.8%. How- ever, the bulk of the company's operating expenses come from its administrative costs, which to- talled to €4.4 million in 2022 and is largely attributed to labour costs and depreciation. The company's balance sheet also appears healthy, with €7.5 million in total assets and almost €5 million in current liabilities. However, in 2022, WT Global spent €1.5 million on salaries and wages, excluding directors' remu- neration. Yet in the same year, the company employed 423 full-time workers on average. Despite im- pressive turnovers and a low cost of sales, the accounts suggest that the average wage in the company is a mere €3,600 a year. Meanwhile, the social security and maternity payments appear to be in line with statutory rates, unlike the wages. To understand further, MaltaTo- day obtained a payslip belonging to a cab driver employed with WT Global. Here, the driver appears to receive €6 an hour before tax, and between €100-€150 in additional food and mobile allowances for a two-week period. An additional reimbursement is handed out for fuel payments. The payslip is issued by United Human Resources, an associate company of WT Global falling under the same parent company, owned by Libyan national Walid Ouhida. The financial accounts for this company also point to an average yearly salary of €4,390 for its workers. Walid himself made hefty pay- ments out of WT Global during the 2022 financial year. The direc- tor's current account, which sum- marises transactions between the director and the company, shot up drastically from €196,788 in 2021 to €2.7 million in the following year. The current account is "un- secured, interest free and has no fixed repayment date", indicating what is ultimately a very generous, interest-free loan to Walid. This loan is separate to the div- idend paid out to the immediate parent company, JWJ Invest- ments, of which Walid is the sole shareholder. In 2022, WT Global issued a dividend of €600,000. A life of luxury Walid Ouhida, the director and owner of WT Global, is an enigma. The 41-year-old Libyan national has had a presence in Malta since at least 2016 but was granted asy- lum in Malta in 2020. He's had several business en- deavours throughout the years but is now best known as the director of WT Global, which has been dominating the cab and food de- livery sectors. Walid resides in a St Paul's Bay flat, but his social media shows a life of luxury. His Facebook posts show him to be a frequent traveller and a regular visitor to many luxu- rious hotels. In one post from 2021, he is seen sporting Gucci shoes and Armani clothes at the Westin Dragonara Resort. In July 2022, he stayed at the Iniala Hotel's presidential suite and the Intercontinental Hotel, before heading off to the Le Royal Hotel in Luxembourg a month lat- er. He was also a guest in various luxurious hotel rooms in Zurich and Tunis. Walid celebrated the new year with a limited-edition bottle of champaign, as well as a gold-cov- ered steak from Caviar & Bull. Last August, he flaunted his new BMW M7, the number plate a nod to WT Global's parent company, JWJ Investment Group. Earlier this year, he was notified by the Malta Tax and Customs Administration to contact them immediately. This would typical- ly be the case for persons from whom the tax administration re- quests documents for the carrying out of tax audits or to notify with a tax assessment. The notice was published in the Government Ga- zette on 13 February. WT Global's massive influence within the cab sector WT Global is currently Malta's strongest player in the ride-hailing industry when it comes to the size of its fleet. As of last November, the company owned 269 Y-plate vehicles, distancing itself from the second-largest fleet by 119 vehi- cles. Information tabled in parliament last March shows that WT Global employs 62 drivers and has four garages, although the capacity of each garage is unknown. MaltaToday has found several of the company's vehicles parked ille- gally overnight in several locations, including St Paul's Bay, Marsaska- la and in supermarket parking fa- cilities. Last October, Transport Malta (TM) announced that fleet owners with more than five Y-plate vehi- cles require a commercial garage. Operators were given a 12-month window to abide by the regula- tions, with the window is set to expire in October. With only four garages and near- ly 270 vehicles, WT Global ap- plied to convert a Mosta carpenter workshop into a public service ga- rage. Walid Ouhida, the director and owner of WT Global 7 NEWS maltatoday | SUNDAY • 14 APRIL 2024 WT Global: Impressive profits, but dismal wages The company, as do most fleet operators, offers its services to ride-hailing platforms, name- ly Bolt, eCabs, and Uber. A high-ranking industry source told MaltaToday that the size of WT Global's fleet is large enough to influence the ride-hailing industry, and that it enjoys low commission rates and higher priority on certain platforms. Cab industry questions success of 'non-compliant operators' WT Global's aggressive expan- sion within the ride-hailing sector is not lost on other operators who question how the company regis- ters such rapid growth year after year in an industry where opera- tors are going out of business. In an interview with this newspa- per in September 2023, the Light Passenger Operators Association (LPOA) President, Aaron Gatt explained that operators were see- ing their profit margins dive by as much as 45% from the previous year while working more hours. WT Global's gross margin re- mained very steady throughout the years, although its operating and profit-before-tax margins experi- enced a 27% dip year-on-year in 2022. Last March, LPOA issued an- other statement on the significant challenges faced by law-abiding operators. Here, the lobby group stated that the "rapid growth of large operators raises questions about their compliance with trans- port regulations," as it called on au- thorities to investigate non-com- pliant operators. LPOA had asserted that the "un- checked expansion of non-compli- ant operators has led to oversupply in the market, harming law-abid- ing drivers and the industry. It's imperative to hold accountable those responsible for flouting reg- ulations and consequently, damag- ing the market dynamics." In 2022, the government sought to regulate platform work in gener- al by forcing employers to provide workers with a contract of employ- ment, a detailed payslip, statutory bonuses, and overtime rates paid by the hour. Platforms making use of recruitment agencies to secure a supply of workers must make sure that the agency provides all infor- mation necessary so that all salaries can be paid out accurately. Questions unanswered MaltaToday reached out to WT Global on Tuesday 9 April with a set of questions to understand the company's financial accounts, par- ticularly its large profits and low wage numbers. However, the com- pany did not reply by the time of publication. The questions sent to WT Global can be found below: • WT Global's 2022 accounts show an exponential growth in revenue in just four years, all while keeping cost of sales incredibly low. Could you explain, within the parameters of commercial confi- dentiality, what has caused this im- pressive growth, and how the sales costs have remained so low? • According to the same finan- cial accounts, WT Global pays an average wage of €3,681.95 per year. This number was calculated as the amount of salaries, wages and allowances divided by the aver- age number of persons employed. Could you shed some light on how this is possible? • MaltaToday has seen a payslip belonging to one of the company's employees. The employee makes almost minimum wage, but then earns almost double his/her fixed wage in non-taxable allowances. Could you explain this set-up? • The same payslip contains a hefty fuel reimbursement, between €700-800, for a two-week period. Is this amount of fuel reasonable for a cab driver? • On 13th February 2024 you were issued a notice by the Com- missioner for Tax and Customs. Could you explain the nature of this notice? • How many cars and motorcy- cles does WT Global have in its fleet today? Walid Ouhida frequently uploaded posts and pcitures showcasing his extravagant lifestyle YOUR RIGHT TO KNOW WWW.MALTATODAY.COM.MT SUNDAY 14 APRIL 2024 • ISSUE 1274 • PUBLISHED EVERY WEDNESDAY AND SUNDAY 3.60% p.a. MeDirect Bank is a participant in the Depositor Compensation Scheme established under the Maltese Laws. Rate is quoted gross of tax on a per annum basis and is paid into a savings account. Accounts can be opened with a minimum of €100 and deposit must be kept in the account for the duration of the term. MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371). on a 6-month term deposit in Euro. Open an account online today. medirect.com.mt 2557 4400 I info@medirect.com.mt What does MEPs' resolution on EU Charter mean for Malta? PAGES 10 - 11 Paola parish priest wants restaurant on church roof and souvenir shop PAGE 12 Abortion Holy dining peace maltatoday Revealed: Malta's largest cab supplier's murky accounts Legionnaire disease raises its head again WT Global has been dominating the cab and food delivery sectors. It's been registering record profits and hiring whopping numbers of couriers and taxi drivers to keep op- erations running. However, the financial accounts of the company paint a picture of a small empire built on the cheap labour of its workers, largely food delivery couriers and taxi drivers. MaltaToday takes a deep dive into the accounts of WT Global to understand how the com- pany is doing so well, and where there might be cause for alarm. PAGES 6 - 7 PREVIOUSLY associated with tourists staying in ho- tels with ill kept ACs and hot tubs Legionnaire disease is becoming increasingly com- mon among the resident population. Official statistics show that last year Malta recorded 13 cases of the potentially lethal water-borne disease amidst a spike in cases across Europe. This represents the third highest ever number of an- nual cases in Malta of the bacterial infection associated with neglected air-condition- ing and plumbing systems. According to the Infectious Disease Prevention and Con- trol Unit (IDCU)'s annual report nine cases out of the 13 recorded in 2023 involved Maltese residents. PAGE 2 JAMES DEBONO jdebono@mediatoday.com.mt Walid Ouhida, the director and owner of WT Global (inset) runs Malta's largest cab supplier With six seats up for grabs in the European election, we give you a nerd's guide to how they could be divided. PAGES 13 - 15 NICOLE MEILAK MATTHEW FARRUGIA & mfarrugia@mediatoday.com.mt nmeilak@mediatoday.com.mt How TM official bought fuel for private boat and billed authority PAGE 3 Fill it up Rule of law €1.95 Robert Aquilina on Robert Aquilina on his quest for justice, his quest for justice, Joseph Muscat, police Joseph Muscat, police inaction and the PN inaction and the PN INTERVIEW MT2