The police are investigating links between Marco Gaffarena and Castille, the Malta Independent has learnt.

Replying to the following question; “On the Opposition's call to investigate links to Castille in the Gaffarena case, what has the police done so far?”; the police said – “regarding the Gaffarena case, this is being investigated.”

PN Deputy Leader Beppe Fenech Adami had sent letters to the Police Commissioner requesting an investigation last February.

Marco Gaffarena has been at the centre of one of the islands largest scandals, which relates to a controversial expropriation deal that had Mr Gaffarena being given €1.6 million in cash and land as compensation for the part expropriation of the Old Mint Street property in Valletta.

The Prime Minister, in his capacity as a member of Parliament, and the Attorney General have filed a lawsuit against the Gaffarenas after a damning National Audit Office report found serious irregularities in the transfer and in the way Mr Gaffarena purchased the two halves of the Valletta building. They are effectively calling for the annulment of the whole deal. In the meantime they filed an injunction to stop the Gaffarenas from disposing of the properties transferred to them through a warrant of prohibitory injunction.

Legal experts had previously told this newsroom that by filing legal proceedings in his own name he may very well have saved himself from the embarrassing situation of being called up as a defendant. This is because that the Lands Department falls under the Parliamentary Secretariat for Planning, which falls under the Office of the Prime Minister. Parliamentary Secretary Michael Falzon resigned in January after the NAO report.

Dr Muscat has previously defended his choice to initiate legal proceedings as a Member of Parliament, rather than as the Prime Minister. “The action which was filed is a special action that may be exercised in the public interest according to Article 4 of the Disposal of Government Land Act. It is the law itself which states that the action may be filed by the Attorney General and by any person who is a member of the House of Representatives at the time when the action is filed.”