The Labour Party is challenging Opposition Leader Simon Busuttil to take action against former lands minister Jason Azzopardi following revelation of an expropriation under Nationalist government.

Malta Today reported that a €60,000 countryside passage in Mtahleb that was expropriated back in 1974 returned €400,000 in compensation to its original owner in 2011.

The land belongs to entrepreneur Emanuel Peresso, CEO of Michele Peresso Group of Companies. Mr Peresso received €400,000 in cash even though the director of the lands department at the time, Albert Mamo, estimated it at just €60,000.

The newspaper revealed a thread of email showing how a new valuation of the land was negotiated. In one email, Mr Peresso said that Prime Minister Lawrence Gonzi had confirmed that valuation amounts to €140,000. An additional amount was paid for damages and interests.

In a statement, the PL said that Dr Busuttil should start engaging in clean politics, as he promised earlier during the day.

The PL questioned how a land valued at €60,000 by Mr Mamo resulted in a payment of €400,00 compensation – almost seven times the amount, saying that it is clear that this was the result of a political decision.  

In a reply, the Nationalist Party said that after an extensive search, Labour could only find an email which was copiwed to politicians. But this will not remove the grave scandal of the government's dealings as uncovered recently in the Gaffarena, Zammit cases.