The Justice and Home Affairs Ministry yesterday denied, though a statement issued by the Department of Information, that former Church property was being sold at higher than market value.

The law that set up the Joint Office, it said, was based on the 28 November 1991 agreement between the government and the Holy See under which Church property not being used for religious or pastoral purposes was passed over to the government at a price agreed between both parties.

The government had agreed that any profit from the sale of these properties would be used to subsidise Church schools while it would also pay all teachers’ salaries along with a 10 per cent contribution for all maintenance.

This, said the ministry, meant that the agreement presumed that all property would be sold at a profit and that any profit must go towards subsidising Church schools.

In its statement, the ministry said that allegations in certain sections of the press inferring that someone was making money out of the agreement by selling it at a price higher than market value did not hold water.

The ministry reiterated that any profits made went directly to the schools, and it added that it was simply untrue that property was being sold at higher than market value. In fact, the properties were sold according to calls for purchasing according to the Government Property Transfer Act.

This, said the ministry, stipulated that the property was sold to the highest bidder.

The government has used this agreement to transfer some Lm10.7 million worth of lands to the Housing Authority so as to allow it to construct subsidised housing units.