When Lubinsky duped Malta Enterprise

Sunday, 29 Apr 2012, 05:08

 

Ten years ago, AC Cars, Britain’s oldest car brand, started looking at Malta as a potential country to open up a new factory. In 2004, Alan Lubinsky, Chairman of AC Holdings Ltd. announced the opening of a factory in Malta, primarily to build composite body versions (an elaborate term for replicas) of a popular car for worldwide exports. AC Cars Ltd. were given the sum of € 582,343 by Malta Enterprise and a government factory in Hal-Far Industrial estate. AC Cars were supposed to invest around € 2.3 million and initially employ 20 persons which number of employees was meant to rise as production increased. It was a well advertised achievement of the Government.

Since then, in 2008, the company ceased operating. Mr Lubisnky abandoned the island and left several private companies that assisted him empty-handed. Unsurprisingly, Lubinsky is renowned for his unreliable history in international business. Mr. Lubinsky and AC Cars have a long trail of failed projects and unpaid bills.

In Malta several of the firm’s creditors have taken the company to court. Malta Enterprise has a court case pending against AC Cars Manufacturing Ltd. Malta Enterprise is trying to collect the half a million euro it has given to Mr. Lubinsky and his company.

It seems that Malta Enterprise, in their eagerness to claim success for bringing over another company to Malta and in a bid to enhance the Government’s job creation statistics, forgot  to carry out a due diligence report on the company and Mr. Lubinsky.

There are several records, before the venture with Malta Enterprise and since, where Mr. Lubinsky has sweet talked authorities only to fall back on his promises and to resort to bankruptcies and receiverships. Some of these date back to 1996. Since leaving Malta, Mr. Lubinsky has tried to relocate in Wales, in the USA and apparently has now managed to set up AC cars in Germany.

At the time, the local papers were full of the authorities’ scoop in bringing over this company. One wonders if any bonuses had been paid to the high ranking staff at Malta Enterprise at the time. It is relatively easy to finance people to come to Malta to create jobs. However when similar misadventures happen, the people concerned are not accountable. It is the Maltese taxpayer who has to foot the bill.

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Comments (1)

Irresponsible

- Sun 29-Apr-2012, 13:49

Have you forgotten AMS Ltd, nicknamed Ahtaf Malajr & Sons Limited who were also given hundreds of thousands of Malta Lira and vanished without trace?

I suggest that those who handed over our money be held personally responsible for not carrying out a due diligence examination and simply handed over OUR money.

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