During the discussion programme Bondiplus aired on TVM on 6 February, Josie Muscat made a false and scurrilous accusation of corruption regarding the Tigné Point Project being developed by Midi plc. He tried to justify this accusation by making a number of wild allegations that are absolutely without foundation and do not even, in themselves, support the serious accusation of corruption.

By way of background, the deed of title to the land, which contains the financial consideration payable by Midi as well as Midi’s development and restoration obligations, was discussed and negotiated with the government, and various other governmental agencies such as MEPA, over a period of about seven years. The discussions started during the Nationalist administration of 1992, continued under the Labour administration between 1996 and 1998, and were concluded during the Nationalist administration in the year 2000. The deed was then discussed and approved, without a division, by the House of Representatives after it was examined by the National Audit Office in terms of the Disposal of Government Land Act.

Dr Muscat had the effrontery to describe his allegations of “rampant corruption” as fact when it is blatantly clear that he failed to carry out any basic research on the facts, which are as follows:

Presumably, the document Dr Muscat referred to is the Development Brief approved in December 1992, which, for the avoidance of doubt does not specify a height of two storeys, as Dr Muscat alleged, but refers to various heights to be “generally applied” throughout the development at Tigné Point, including a vertical feature of unspecified height.

During the negotiation stage and following various consultations, outline development permission was granted by MEPA in October 1999. The outline permit is attached to the deed of title. The master plan being implemented by Midi for Tigné Point generally reflects the outline permit, and absolutely reflects the total volumes and the categories of use that were originally approved. There has been no change in volume of development approved, since the original schedule of development accommodation was approved in 1999.

Dr Muscat states that although Midi was obliged to build roads, a yacht marina and a breakwater and to carry out restoration work on heritage buildings, it failed to do so. He describes this as “a scandal”.

The facts are as follows: Midi has to date completed restoration work on the Garrison Chapel and the Clock Tower block at Tigné Point and is close to completing the full restoration of both Fort Tigné and Fort Manoel. The application for the restoration of the Lazzaretto complex was submitted to MEPA in 2005 and as soon as the relative permits are finally issued, the restoration work on this third major heritage structure will also start. The only road specified in the deed of title, the underground link road between Tigné Sea Front and Qui-si-Sana, will also be completed shortly, after suffering major delays related to the need to preserve the Garden Battery structure that was not scheduled for preservation in the Outline Permit.

Midi has in fact spent over €15 million on public infrastructural and restoration work to-date and this figure will rise to €30 million in restoration work alone by the time the Forts and the Lazaretto are fully complete.

As for the accusation about not building the breakwater and yacht marina, Dr Muscat should note that after completing extensive studies, Midi lodged an application for the construction of the breakwater in 2003 and is still awaiting a decision by MEPA on the matter. The development of the yacht marina at Manoel Island depends on the construction of the breakwater. Midi has every interest in developing the marina but of course cannot proceed to do so without the relative permits in hand.

Dr Muscat also alleged that it was a scandal that the transfer of land was exempted from stamp duty.

The facts are as follows: Midi negotiated and agreed a total package that represented the consideration payable for the lease concession. Part of the consideration could have been expressed as duty, yet rather than doing so, the total consideration is shown in the premium and ground rent payable as well as the public infrastructural works and restoration work, which Midi is bound to carry out.

There is nothing unique or “scandalous” in this, since Midi was given exactly the same treatment as other major projects involving transfer of government land at the time among which one can mention the Valletta Waterfront (VISET) Development and the Cottonera Project.

The deed of title, which was examined by the National Audit Office Committee and approved by Parliament without a division, contained a reference to this exemption order in respect of duty on documents.

We would like to make it absolutely clear that Midi is honouring all its commitments and obligations in the deed of title and will continue to do so. The company’s integrity is one of its most important assets. Midi has been unjustly vilified and maligned by Dr Muscat and will be instigating libel proceedings in his regard.