The PN has a lot of questions to answer regarding the Valletta property it bought “for no reason” from HSBC for €2.2 million, PL Deputy Leader Toni Abela and MP Silvio Schembri said this afternoon.
Addressing a press conference, Dr Abela referred to a recent newspaper report on the purchase contract and the “warnings” former Finance Minister Tonio Fenech had receive from his Permanent Secretary, Alfred Camilleri.
“The previous administration bought the HSBC property in Republic Street to relocate the Attorney General’s office there but it turned out that €2.2 million from taxpayer money were forked out for nothing,” Dr Abela said. Referring to the Malta Today story, the PL Deputy Leader said Perm Sec Alfred Camilleri had warned that the property was overvalued and that he “was not confident that the government would not be paying more than it should for it.” His advice was ignored and the sale went ahead nonetheless. “This was not the first time that the government ignored the advice of the authorities during the previous legislature. Deals were carried out in an unorthodox way,” Dr Abela argued.
Mr Camilleri had also advised the former minster to make sure that the property was in a good state and ready to move into but this was not the case and engineers later established that around €250,000 were needed to repair the electrical infrastructure and air conditioning. Camilleri had also warned that a particular clause agreeing to the acquisition of something tale quale would render any subsequent claims useless”. The Perm Sec, described by Dr Abela as a person of integrity, had also noted that the engineering report was only commissioned after the sale was agreed.
“The fact is that this property was bought for nothing and it only started being used by this government. The last PN government purchased an 11-year lease and, after three years, it had not even started using the building. This also shows a lack of forward planning.”
PL MP Silvio Schembri challenged PN Spokesman on Lands Jason Azzopardi to call a press conference, but this time to answer questions about the controversial property sale. “Why did the PN government only buy an 11-year lease if it needed it so urgently? Why did it not just buy the property? Can Jason Azzopardi and Tonio Fenech explain what the urgency was?”
Mr Schembri said Tonio Fenech should also explain why he did not heed the advice of his Permanent Secretary, especially when he had warned that the deal would certainly be criticized in the future? “Will Azzopardi and Fenech go to the Auditor General out of their own free will? Why was the engineering report only commissioned after the agreement was sealed? Why did the government of the day pay 11% more than it should have on the property? Is it normal for a €2.2 million deal to be concluded in less than an hour?”
Labour Party is clutching at straws - PN
In a statement this evening the PN said "it's very rich for the Labour Party to try and sell something which is not news to journalists in the midst of summer. However, a party which is stooping low in its levels day after day, will do anything to try and distract people’s attention from their own scandals."
"Deputy Leader Toni Abela could might as well, whilst addressing the press, speak about Michael’s Falzon involvement in what is now the third scandal revealed just yesterday - the Parliamentary Secretary’s involvement in the acquisition, by BOV, of House of Four Winds. This amidst facts emerging day after day with regards to the unique ‘early termination benefit from BOV’ and Michael Falzon’s involvement in the Gaffarena scandal.
On his behalf, PL backbencher Silvio Schembri could have given a thorough explanation of all the roles that he has been given by this government, and the payment of a minimum of €65,000 he is being paid every year.
Purposely, Toni Abela and Silvio Schembri chose to repeat half-truths to deceive both the journalists and the public in general. If Labour really believes that there is some wrongdoing in this deal, it should publish all the file, together with the files related to the Cafe’ Premier and Old Mint Street scandals.
Labour has once again failed in going through all the files of previous years within the Lands Department to try and find something to attack on. Muscat’s party is now really clutching at straws. Today’s press conference is really a storm in a teacup."