Issue link: https://maltatoday.uberflip.com/i/388498
maltatoday, SUNDAY, 28 SEPTEMBER 2014 News 7 MATTHEW AGIUS FRANK Farrugia, leading the Lib- ya Crisis Committee panel of the Malta Chamber of Commerce, has described the situation in the North African country as very unpredict- able. "Our business contacts in Libya are still there, but the situation is very different from two years ago. We knew whom we had to talk to and had well-established government contacts, today there is nobody to contact," he told MaltaToday. "The Maltese government is as- sisting businesses on a case by case basis, through Malta Enterprise," Farrugia said, who is also managing director of Alcom, an import-export business that also operates in Libya. "From a business perspective, so far, Alcom has managed to hold on to its Maltese employees in Libya, while most other Maltese companies in Libya have found their workers al- ternative employment," he said, lay- ing emphasis on "so far." "We hope our business contacts remain valid and our stocks were not looted – that's another concern." The problems faced by businesses in Libya are manifold. "Banks are not operating in Libya, so no payments can be made or re- ceived. Furthermore Air Malta no longer operates to Libya, so get- ting there means flying to Tunis and covering the rest of the trip by road, which is highly dangerous. The Djerba route is no longer viable." The instability has resulted in loss- es for every business in the country. "Time has been wasted, loans are gathering interest… the problems are tremendous." The best case sce- nario in his view "would be a strong Libyan central government with a clear direction, that issues clear con- tracts". Farrugia hasn't given up hope however, adding that the political and administrative vacuum in Libya has created "big opportunities, but also big risks". "We just have to wait and see." TIM DIACONO ALBERTA Group, a firm which has specialised in security and fire alarms for 25 years, has faced a mas- sive downturn as a result of the on- going Libya crisis. The company's two branches in Libya, Alberta Group and ISTC Lib- ya, have been forced to shut down as a result of the unrest in the country. All 25 of their Maltese employees were shipped back to base in Malta this summer while all 10 of their Libyan and Filipino employees in the country remain on the payroll. "Our projected revenue from Libya for the plan year was €10 million," Alberta Group director Liz Barbaro Sant told the Commercial Courier. "We have debts in excess of €500,000. All our open projects are halted, which will affect progress payments for all work in progress. All our busi- ness development plans and invest- ments over the last year or so have now proven to be superfluous." While Barbaro Sant asserts that Alberta Group have always strived to keep the Libya and Malta opera- tions financially separate, they are dealing with a severe case here "The reality is that the blow to the Libyan branches will hit the Malta finances too," she said. The toppling of dictator Muammar Gaddafi had seemed like the start of a new, democratic age for Libya. Three years later though, the country finds itself with two governments, and the situation is not showing signs that it may improve anytime soon. Liz Barbaro Sant was clear when she explained what the shutting down of the Libyan branches could spell for the Maltese branch. "If the Libyan situation deterio- rates, it will bring an untenable situ- ation for us," she said. "Losses would be too high for the Malta operation to support." She is not too optimistic that there will be change anytime soon either. "Libya was never an easy market to operate in but we believe that once this situation clears or improves, whenever that may be, it will be even more challenging and complex," she said. "It will not simply be a matter of mobilising again and starting where we left off." After the rebels toppled Gaddafi back in 2011, the government helped Alberta Group out by giving them quicker tax refunds, easing their cash flow. "Ideally something similar is done this time round and I am sure this is being considered," Barbaro Sant said. Tuesday, The 30th being the trigesima of the death of Josette Amato. A mass for the repose of her soul will be held at Ta L-Ibragg church at 6.30pm on Tuesday 30th September. LORD GRANT HER ETERNAL PEACE The attendance of friends will be appreciated IN LOVING MEMORY OF JOSETTE AMATO daily fines for pre-1994 illegalities legality and giving a period of time in which the site is to be restored, at his expense. In this case the cost involved can still be claimed from the offender once he is known, the government spokesperson told MaltaToday. Last year a planning applica- tion was presented to develop a seven-storey hotel on the same site. The application has not yet been validated by the MEPA. The application, presented by Anthony Curmi in Decem- ber, foresees the demolition of the existing Costa del Sol restaurant and the construc- tion of a hotel, beach bar, an underground car park and new residential units. Curmi had presented an application to develop a 260- room four-star hotel on the same site in 1994, which was rejected in 1997 due to its im- pact on the landscape. Libya crisis wipes out projected €10 million revenues for Maltese firm Liz Barbaro Sant Libya instability 'wreaks havoc on Malta businesses' Frank Farrugia