The Malta Independent 6 May 2024, Monday
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Muscat rules out renegotiating Café Premier bailout to remove controversial ‘commission’

John Cordina Friday, 6 March 2015, 16:36 Last update: about 10 years ago

Prime Minister Joseph Muscat has ruled out any renegotiation of the €4.2 million "bailout" of Café Premier to remove an apparent €210,000 commission paid to Cities Entertainment co-owner Mario Camilleri, deeming the deal final.

The €4.2 million are being paid in instalments, and two instalments of €590,200 are still pending.

But Dr Muscat said that the government would not renegotiate any part of the deal, stating that it was comforted by the fact that the National Audit Office's assertion that the price paid reflected the property's commercial value.

However, the NAO had flagged numerous shortcomings in the deal with Cities Entertainment, which could have been evicted through court proceedings due to its failure to pay ground rent, and found insufficient justification for the government's decision to go ahead with the agreement instead.

The Prime Minister, on the other hand, said that the government's decision was a matter of policy, as it did not want to leave the property closed and was not prepared to spend years in court to get its property back.

Dr Muscat also noted that while his personal preference was for the non-commercial use of the site - including extending the National Library to improve accessibility for people with mobility problems - commercial uses were not being ruled out.

The various options for the use of the building would be formalised in the near future, he said. 

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