Issue link: https://maltatoday.uberflip.com/i/602004
maltatoday, SUNDAY, 15 NOVEMBER 2015 News 9 TIM DIACONO FORMER employees of a video gaming company at the centre of a political controversy have accused their ex-employers of luring work- ers to Malta on false promises of success. "TRC lured people into coming to Malta based on promises that it was very well-funded, that they were going to expand rapidly and dra- matically with a secondary studio in Malta that never materialized, and that the company had important contacts with major companies to publish the product, when it turns out that they were just showing it around like anyone else would do," a senior manager told MaltaToday. Prime Minister Joseph Muscat last month accused the previous administration of having invested €8 million in TRC Entertainment, despite a due diligence exercise hav- ing warned of its founder's "dubious background and links to criminal activity" – claims made by Muscat in the House of Representative. Former finance minister Tonio Fenech retorted that the company was vouched for by established names in the video game world, and that Malta Enterprise's investment was in either way conditional on TRC reaching profitability. However, behind the political tit- for-tat lie people who were fooled into believing that they were joining something special, with some even quitting their jobs and selling their houses to come to Malta. Indeed, the senior manager who has spoken to MaltaToday has chosen to remain anonymous as he plans to spearhead two separate lawsuits – one against TRC itself for charges including misrepre- sentation, and another against the Department of Industrial Relations (DIER) over its alleged failure to investigate a month's worth of out- standing salaries. TRC Entertainment's founders, Peter Robinson and his son Craig set up in Malta in 2011 with a dream to produce the next best-selling chil- dren's video game 'Wishingtooth' – the tale of a tooth fairy's adventures, that was the brain- child of Craig's novelist girlfriend Ashley Mansour. They wooed Malta Enterprise (ME) by recruiting some of the crème de la crème in the industry to their executive board – includ- ing former Jetix Europe CEO Paul Taylor and former Sony Computer Entertainment Europe president Chris Deering – the latter was also to become Malta's special envoy for digital gaming. Viewing it as a perfect opportu- nity for Malta to branch out into a new digital gaming economic niche, ME agreed to spend €4 million to become a minority shareholder in the venture, as well as an additional €4 million on investment – tied to a contract that half of TRC's work- force would be Maltese and that the company would become profitable by the end of the year. However, the dream soon turned sour and TRC was struck by poor plot reviews and continuous inner conflict – with the executive forced to shake up its management three times in four years. With no revenue from the game itself, TRC was forced to lean on a continuous stream of fresh pri- vate investment, hyping its future product up to keep itself afloat. In- vestment was channelled through Euphoria Media, an Ireland-based capital investment firm. MaltaToday is informed that some employees were placed in precari- ous conditions, with some not earn- ing enough to afford rent and one in particular not receiving a single salary for several months and only surviving through couchsurfing. Moreover, the Maltese "quota" only ever reached some 40%, and the senior source explained that TRC viewed the local workers as "cheap labour" – willing to work long hours under poor conditions for the sake of forming part of what they believed to be a grand project. The final straw came when Eu- phoria's chairperson, Simon Smith, also a TRC director, decided to put all his eggs in one basket and chase down a single €3 million invest- ment. While he was keen from the get-go, he eventually lost inter- est – reportedly after his wife was diagnosed with cancer. Although he was contractually bound to purchase TRC shares, he was not obliged to pay up until months later. With TRC revenue so heavily reli- ant on constant investment, the news came as a deathblow to the company – which could no longer afford workers' salaries and operat- ing costs. Smith's pledge to cover salaries and expenses pending new invest- ment never materialized, Euphoria eventually got struck off as a com- pany, and TRC finally shut down in October 2014. "As salaries dried up, we were as- sured that we would be paid again, and so people stayed, exhausted their financial reserves and found themselves in trouble to the point that some got evicted and didn't have enough money to fly back home," the senior manager said. Malta Enterprise spokesperson Fleurette Zarb Cocks told MaltaTo- day that ME remains committed to ensuring that all former TRC em- ployees are paid the arrears of their salaries. Its stance with regard to recover- ing the €8 million investment re- mains the same as it was when TRC closed its doors in September 2014. "We are taking advice on the op- tions open to us, in view of the com- mitments made with TRC by the previous administration," she said. "ME will seek to ensure that TRC enforces and collects guarantees available." tdiacono@mediatoday.com.mt Digital games firm 'lured people on false promises' From left: TRC executives Chris Deering and Paul Taylor, former finance minister Tonio Fenech, and former Malta Enterprise executive chairman Alan Camilleri Failed dreams: Wishingtooth was supposed to place Malta on the digital gaming map GAP steps in to develop Ta' Masrija JAMES DEBONO GAP Holdings have stepped in to propose the construction of 152 apartments over part of Ta' Masrija in Mellieha. The application was presented just weeks after a policy review which is set to allow buildings of up to seven storeys high, on parts of the site. The proposed block will be seven storeys high above three basement levels for 174 garages. The proposal only covers a part of the site that lies along the Mellieha by-pass. Although located within develop- ment zones, the proposal is still con- sidered sensitive as it is located on a ridge and is set to impact on views enjoyed by residents living in two or three-storey houses in the surround- ing areas. GAP – owned by Paul Attard, George Muscat and Adrian Muscat – are the developers behind Tigné's Fort Cambridge and recently pro- posed the development of a 40-sto- rey hotel right next door. Their Mellieha application lies on part of the site where developer Michael Bharwani had formerly pro- posed 300 apartments in 2006, which were however never approved. The policy that was granted final government approval last month was already approved by the Malta Environment and Planning Au- thority back in August. Deceptively, while MEPA's stated objectives for the planning review was to pro- hibit the adoption of the floor-area- ratio (FAR) policy on this site, the new policy still permits heights of four and five floors, with increased heights of up to seven floors in some parts of the site. Only two- to three- storey buildings are allowed in sur- rounding area. Under intense pressure from resi- dents MEPA had already committed not to apply the floor-to-area ratio policy in correspondence with the Mellieha local council dating back to 2007. But the policy was never changed, as two applications remained pend- ing. Residents have argued that such development would create excessive shadowing of a substantial number of properties. Development applications for three areas on the Ta' Masrija site, held by different owners, have been pending since 2006 because of the controversy that erupted over a pro- posal to build some 462 apartments, more than 700 parking spaces, a 1,025-square-metre neighbourhood centre, and a club of similar size. Representing residents, architect Carmel Caccopardo – Alternattiva Demokratika deputy chairperson – said at the MEPA hearing in August that the new policy represented a shifting of the goalposts, as it allowed for development up to twice as in- tensive as the surrounding areas. Residents who spoke at the meeting also said that the height restrictions should be identical to the surround- ing area, which was characterised by two- to three-storey buildings. The board refused a proposed amendment to minimise the visual impact by stepping down the de- velopment by reducing the building height towards the front of the site. The MEPA board claimed that the policy review was initiated after the various site owners failed to reach an agreement on a comprehensive plan as requested in the 2006 Planning Policy for Ta' Masrija.