Partit Demokratiku today reiterated its concerns about plans to re-develop the site of the former Fortina Hotel into an office block.

In a statement, the PD said last year it had blown the whistle on Fortel Company Ltd's plans to change part of the Fortina development exclusively into luxury apartments, when part of the land in question was sold by government on the premise that this public land will be used solely for the hotel tourism industry.

It is also rumoured that the whole building is possibly going to be internally furnished by a company with links to an OPM official. Partit Demokratiku requested that this potential conflict of interest be investigated.

Since last year, Fortel Company Ltd has applied for a change of use with the PA, changing its application from one of luxury apartments to an office block. PD reiterates its concerns regarding the preferential less than market value of the redemption of the soft ground rent of land in question as a state incentive intended for tourism investment.

That the office spaces have already been rented, months before the actual shell construction of the property is completed, is testament to the fact that the investment here has no risk, and the change of use, prompted by the premature disposal of the premises to third parties, should nullify the favourable price of the land. It is not right for the taxpayer to subsidise private enterprise.

It had been declared by Fortel CEO that the residential block has already been sold to a foreign gambling company. This implies that government has already made up its mind to accommodate Fortel’s plans as part of its economic policy, PD said.

Partit Demokratiku requests the Lands Authority deals with this situation in the interests of the general public rather than in the interests of private business, which continues to exploit loopholes and bully its way to further enrichment at the expense of the average citizen.  The sale of public land to Fortel Company Ltd was done some years back, and since then not only has the price of this prime land become dearer, but tall buildings are being given permits thus increasing the floor space.

PD notes that Joseph Muscat’s pro-business government and its perverse incentives have broken the system of good governance through shady deals. A robust economy is not built on scandal, but on honest, transparent business. Businessmen should not have to operate in a dirty environment to remain competitive.