One of two Government Property Division officials who were berated by the Auditor General in his report on the controversial Gaffarena expropriation deal “is on leave and in the process of resigning,” according to government sources.

The NAO report, published yesterday, found that former Parliamentary Secretary Michael Falzon, former Director General of the GPD Raymond Camilleri, and the Director Estates Management, Carmel Camilleri, failed to safeguard the government’s interest by expropriating property belonging to Mark Gaffarena in Old Mint street which, although useful, served no identified public purpose.

Raymond Camilleri, picture, resigned ‘for personal reasons’ back in August last year, amid an investigation by the Internal Audit Investigations Department. Simone Mousu is currently serving as acting DG.

This paper can now confirm that Carmel Camilleri will be resigning his post as Director Estate Management shortly.

A source said the Public Service Commission will be investigating all officials named by the NAO report as having acted incorrectly. Prime Minister Joseph Muscat yesterday said he would also ask the Attorney General to look into the case to determine whether there were grounds for criminal action.

Employees of the Government Property Division were locked out of their offices this morning as police officers searched the building.