The Opposition insisted today that the government was going against its own planning laws when choosing Zonqor Point over a Tarxien site for the development of the American University of Malta. It argued that, according to MEPA, the Tarxien site was the only ideal one for the project.
The PN has also filed a request for the government to file copies of the financial due diligence on the Sadeen group as well as the company’s audited accounts and net asset value.
The request was filed as the National Audit Office Accounts Committee today continued debating the contract for the transfer of land in Marsascala and Cospicua to Sadeen.
In a previous session it had emerged that the government is pushing the AUM land transfer while the accreditation has not yet been granted by the National Commission for Further and Higher Education. Education Minister Evarist Bartolo presented government's recommendation to transfer land at Zonqor and Dock 1 in Bormla to the Sadeen Group, in the National Audit Office Accounts Committee. The government later said that the contract would be declared null and void if the group fails to obtain and hold accreditation for the University, a government spokesperson said today during a briefing.
Replying to questions by Government Whip Godfrey Farrugia, PL MP Charles Mangion said the public would still enjoy access to Dock 1. Part of Zonqor would not remain accessible to the public but this was only because it would be landscaped. The area in question was set back from the shore. The foreshore would not be touched and people will still be able to swim and hold BBQs in the area as is the situation now.
Mr Mangion said the project’s sole purpose was educational and the dormitories on campus would be reserved to students and academia. He also confirmed that, should the Sadeen group fail to acquire the relevant accreditation, the contract will become null and void.
PN MP Jason Azzopardi noted that while the contract said the public would enjoy an unhindered right of passage in Cospicua, it did not say the same for Zonqor. Mr Mangion replied that since the campus would not touch the foreshore, public access is guaranteed.
On the open area that will become part of the university’s landscaping area, Dr Azzopardi said this would be the Opposition’s first point of contempt. It was not right that access to this area would be regulated by the AuM, he said, pointing out that all outdoor areas of smart city are accessible to the public.
Education Minister Evarist Bartolo said that it goes without saying that an educational campus would include some areas that were restricted to the general public.
PN MP Marthese Portelli said the contract went against the principles of SPED. “We were assured that rural areas would always be used as a last resort.” She recalled how the government and opposition had argued on the use of the word ‘feasible’, which was too open to interpretation. “The contract speaks of use of vacant land which, according to SPED can only be used as a last resort. The planning document requires the government to come up with a reasoned decision for using such an area. Therefore we require such an explanation from the government.”
Dr Portelli said the site selection process had identified a site in Tarxien which was suitable to house at least part of the campus. The study also noted that, while the Zonqor swimming pool area had no significant ecological importance, other nearby areas were earmarked for scheduling. She asked why the government was insisting on building on ODZ land in Zonqor when it could have sited the second part of the campus in Tarxien.
Dr Mangion said the government had reduced the original 90,000sqm area in Zonqor to 18,000sqm.
Dr Portelli said that the Tarxien site was the only one out of hundreds that MEPA had recommended as being suitable for the development of a university campus. The Tarxien site was not ODZ and was big enough in size. The only things it lacked were sea and countryside views.
Dr Mangion said the positive spillover effect in Marsascala would be greater and the government would have risked losing the whole investment deal had it barred the Zonqor site. The original aim was to have one campus – this was a precondition set by the developers. Despite incurring higher administrative costs, the government and the developer had agreed on a split campus. “Everyone wants this project to succeed,” he said, insisting that the project would bring with it economic benefits and would also boost the local economy in Marsascala.
Dr Portelli said Dr Mangion had still not explained why the Tarxien site had not been considered despite being ideal. She also noted that the site selection exercise had been commissioned by the Office of the Prime Minister, as confirmed by MEPA CEO Johann Buttigieg. The report was not conclusive, so why was the government refusing to heed MEPA’s advice? Why was it hell bent on allowing the AuM to be built on ODZ land in Marsascala?
Dr Mangion said he had nothing to add.
Dr Portelli insisted that the government was not giving answers to pertinent questions. She asked again if the government would observe the rules as laid out in SPED and whether it would give the required explanation as to why it was opting for rural land.
Dr Mangion said the government had found Zonqor to be the most feasible site after studying various reports. He insisted again that from a planned 90,000 square meters, only 18,000 square meters of ODZ land would now be taken up for the AuM.
He said that, unlike what had happened under the previous administration, the site would be handed over to Sadeen on a temporary emphyteusis which could not be changed into a permanent one.
Jason Azzopardi asked if the 29,000 sqm in Tarxien was all public space. He noted that it was unfair that Michael Falzon, the Parliamentary Secretary responsible for MEPA, was not present for the debate. On the government’s failure to observe the SPED regulations, Dr Azzopardi said the government was sending out the wrong message that it was above the law.
Evarist Bartolo said all sites were evaluated and the use of 18,000sqm of ODZ land in Zonqor was as “a last resort.” Reacting, Dr Portelli said that the government should therefore have a reasoned explanation.
Godfrey Farrugia said the proposal had changed drastically from its original version. The project would strengthen the national economy, with a particular focus on the south. The government had looked at a number of alternatives and sought to choose the most ideal sites, not only from an economic point of view but also conscious of the specific needs and challenges of some areas. Cospicua, he said, was somewhat disadvantaged educationally. The Zonqor campus was much smaller than originally planned, would include sports facilities that can also be used by locals and was bound to serve exclusively as an educational facility. The project would have a positive effect on the socio-economic aspect in the South.
PN MP Tonio Fenech disagreed, noting that the government had always said it wanted a university in the South, and not specifically in Marsascala. Dr FArrugia said the project would have a positive impact on the entire country, so it might as well have been situated in Gozo. The excuse that the ODZ footprint had decreased drastically was nothing to applaud, Mr Fenech said, especially when there were other alternatives which were not ODZ. The former Finance Minister also insisted that the meeting should not have been held in the absence of Michael Falzon. If the PS was abroad the meeting should have been held on another date.
Marthese Portelli again insisted that the government was going against its own rulebook – SPED – and was essentially breaking the law.
Charles Mangion disagreed and insisted that all the necessary studies had been carried out. The government had always acted within the law, he said.
Tonio Fenech said that the law required the government to publish a reasoned explanation – if it did not then it would be in breach of the law.
He also asked whether a due diligence process had taken place on the Sadeen group? Mr Fenech drew a parallel to ElectroGas, noting that Gasoil had pulled out and government had to give out a loan guarantee.
Charles Mangion assured that all the relevant due diligence processes had been carried out, and were done in a much better way than those on Smarty City. The contract also stipulated that if funds were raised from the banks, this could only be done for the project.
Mr Fenech said the contract laid out that all construction had to be carried out within 73 months of a planning permit being issued. The government had originally said the project would be completed within three years.
(At this point Godfrey Farrugia informed the committee that the Tarxien site had been earmarked for a social project, which would mainly consist of social housing.)
Mr Mangon said the project would take time. In Cospicua restoration work had to be carried out first. He also noted that the AuM would be welcoming its first students in Smart City next year.
Mr Fenech again insisted that PS Michael Falzon should be present. Mr Mangion was not a member of cabinet, and as such was not part of the decisions taken, and he was not responsible for MEPA.
The chairman, Deputy PM Louis Grech said the PL MPs were representing the government on the committee. Mr Fenech replied by asking who had carried out the due diligence process – a question which none of the government MPs could answer. “Someone should be politically responsible for the due diligence process. Can we know who that person is? Can we know who actually carried out the due diligence?”
Godfrey Farrugia said the government had used the “usual” structure, but Mr Fenech said this did not answer his question. “Did a government entity carry out the due diligence or was it a foreign company?”
Jason Azzopardi said that, since the process had been carried out (according to the government) the Opposition was formally requesting for the document to be tabled. Mr Bartolo said the due diligence was made by the the MFSA using foreign companies.
"Can we at least be assured that the due diligence process was a proper one, and that we will not see a repetition of what happened with Electrogas?" Tonio Fenech asked.
Mr Mangion said the government would seek the dissolution of the contract if Sadeen ran into financial trouble and would not step in with a state guarantee.
Jason Azzopardi said the Opposition was also requesting Sadeen’s audited accounts and its net asset value. “Are we asking for too much?” Mr Mangion said he did not have the requested details at hand. All he could say was that that all due diligence tests had been carried out.
Asked about the lack of penalty clauses in the contract, Evarist Bartolo said the ultimate sanction was dissolution of the contract and the return of the land to the public.
Tonio Fenech said the Opposition wanted a copy of the financial due diligence for its internal consumption while the government should give a reasoned explanation for choosing Zonqor over Tarxien before the plenary debate and vote on the contract.
Charles Mangion said the due diligence was carried out by the reputable MFSA and the government was taking responsibility for that study. No one should doubt that process and there was no reason why commercially sensitive information should be published.
Mr Fenech said the Opposition’s request was a reasonable one. The MFSA had not simply carried out a due diligence process to issue a company licence. The Opposition should be given access to the document to see what the standards were.
Deputy PM Louis Grech said the government had taken note of the Opposition’s requests and would be evaluating them. The decision will be announced tomorrow.