Emanuel Peresso – the entrepreneur whose land was taken away by a Labour government back in 1974 without being given any compensation whatsoever but was awarded €400,000 in 2012 by a PN government said that an article which appeared in MaltaToday “distorts the truth and puts him in a bad light”.
The current government said that the PN awarded €400,000 in compensation for a “passageway” but the PN is insisting that the land is far from a passageway but comprises eight tumoli.
In comments to this newsroom yesterday, PN MP Jason Azzopardi said that the government was trying to divert attention from the Old Mint Street controversy and instead of apologising over the fact that then Labour prime minister Dom Mintoff had “snatched” the land in question from Mr Peresso, it was trying to make it look as though the PN awarded an exorbitant sum for a ‘passageway’. Dr Azzopardi said that the government leaked the story and lied.
In a statement issued this afternoon, Mr Peresso referred to the article in question which appeared on MaltaToday’s Sunday edition entitled ‘Lands dished out €400,000 compensation for €60,000 land in 2011’ which distorts the truth and puts him in a bad light.
He explained that in 1974, a substantial parcel of agricultural land/waste land (i.e non-building) in Mtahleb was expropriated by a Governor’s declaration of which land he owned 8,569 square metres (7.62 tumoli), rather more than a small “country side passage” as described in the MaltaToday article.
He continued: “Up to early 2010, I never heard anything from the Lands Department and no notice to treat was ever served on me by such date.”
Article 18A of Chap. 88 of the Laws of Malta (land acquisition {Public purposes} Act) stipulates that “the value of any land (a) still in the course of acquisition on 1 January 2005; (b) in respect of which declaration under Art. 3 was issued before the 5th March 2003, and (c) in respect of which a notice to treat was not issued before 1 January 2005... Shall, saving any interests due until payment is made under Art. 12 (3), be its value as on the 1st January 2005”; interests stipulated under Art. 12 (3) shall be 5% from 15 days after the date of the Governor’s declaration of expropriation to date of contract.
“It was at this stage that I communicated with the Lands Department to enquire why no communication was ever made over land expropriated 36 years previously; since I received no reply, I sent several emails to then Prime Minister Lawrence Gonzi reporting this injustice and asking him to redress this injustice; it seems that Dr Gonzi had referred the matter to Dr Jason Azzopardi, who at the time was the Minster responsible for the Lands Department,” he said.
He continued: “When, at a later stage, I once again sent an email to the Prime Minister, his reply was that ‘as Prime Minster responsible inter alia for the administration of public funds, I have the duty to follow rigorously what is stipulated by the law of this country. In this context I have also the duty to ask for the advice and guidance of the Attorney General’ and again ‘allow me to emphasise that the valuation of any piece of land is not and can never be a political decision.
‘This is why it is a matter left in the hands of the architects. Of course, you are not obliged to accept it and you have every right to contest it in accordance with the established procedure’ and finally ‘I will continue to insist that you are given what is due to you by right. This must be done in accordance with the correct procedures and for no other reason’ – this, I believe, is not political interference as MaltaToday insinuated in its publication.”
Mr Peresso said that some weeks later, he received a letter from the Lands Department dated 11 June 2010 informing him of a valuation of his and third parties’ land.
“I informed the Lands Department that the valuation included land belonging to third parties and I required a valuation of MY land i.e. the 8569 square metres of the expropriated land. The first time I was informed of the valuation of my land was received on 10 January 2012 which stated that “the amount of compensation due to be paid, including interests, is approximately €118,000” made up of €59,130 being the price of the land and €58,946 as interests.
“I fail to understand from where the valuation of €60,000 came from since I was never shown any such valuation by any architect; furthermore, any Tom, Dick and Harry will realise that €7,760 per tumolo is ridiculous and far from reality.
“Can I just point out that some weeks ago, relative to the Zonqor project, government offered the private owners €50 per square metre which is equivalent to €56,000 per tumulo or rather more than seven times what was offered to me.
“In the same letter, the Assistant Director of Contracts added that “interests are calculated as per schedule attached to the Land Acquisition Ordinance (Chapter 88) that is, at 5% per annum on the average of the current value from when it was occupied. Interests are calculated up to the date of acquisition by Government”. In this particular case, interests would adapt to 170% on the value of the expropriated land.”
Mr Peresso further explained that it was some time in 2011 that the Lands Department offered to pay him in kind by offering a plot at Attard but did not accept this offer as he needed the cash at the time and the plot was not saleable since there existed no road formation leading to such plot. “Furthermore Chapter 88 of the Laws of Malta does not contemplate barter but only payment in cash for any expropriated land,” he said.
“I had engaged an architect (Mr Denis Camilleri A & CE) who valued the expropriated land at €307,775 (some €40,000 per Tumolo); architect Camilleri’s report and valuation was supported by documented evidence which showed the real market value of the expropriated land, which contracts were shown to the Lands Department; some time later, I was informed that a fresh valuation was made and the new price offered was €140,000 but a few days later, I was informed by the Lands Department that this valuation was dropped and proposed that a panel of architects (which the Lands Department called Arbitration Committee) be engaged, one of whom would be appointed by me, to establish the market value of the expropriated land.
“I agreed to this proposal made by the Lands Department and this panel valued the property at €206,000 i.e. €27,034 per Tumolo. Adding 170% as interests for the 38 year period, the total amount I would be receiving would be €556,200.
“The contract was signed on 16 May 2012, when I was paid the sum of €206,000 as the price of the expropriated land and €198,020 as interests – a total € 404,020. Please note that interests were paid at the rate of 2.5% per annum (instead of the 5% established by law) and that a clause in the contract was inserted that I could not institute any judicial proceedings against Government relative to the forced expropriation and the relative compensation received.
“From the above facts, it is obvious that I am the one who was wronged when I had to accept a sum inferior to what I was entitled at law; I and my lawyer at the time (Prof. Ian Refalo) protested vehemently but to no avail as I was faced with a situation that I either accept the compensation as offered or wait for it for an undefined period,” he concluded.