Businessman recalls shady property deals in 1980s

A businessman yesterday recounted in court how a former Labour minister used to instruct him to "take over" plots of land and how he used to pass on to the same minister money, amounting to hundreds of thousands of liri in cash in "small amounts".

Joe Pace said he had been coerced to do what he did by the former late minister Lorry Sant. Sant used to remind him that the business Pace ran - the Cafè Premier, Magic Kiosk and Australia Cafè - were all on government-owned land and he would "wake up and find nothing" if he failed to do as told.

Pace was testifying before Mr Justice David Scicluna in a case filed against him by Joe Borg. Borg is suing Pace for damages.

Borg claims he had only signed contracts on December 8, 1981 because he had been threatened. Through the contracts in question, 23 plots of land in Fgura had been transferred to a company owned by Pace.

Pace said he was a director and owned 99 per cent of the shares of Terry Ltd. Sant had told him he had to sign a contract so that 23 plots of land at Tà Zilfa and Tà Beligna, in Fgura would be transferred to Terry Ltd from the company Paola Developments Ltd in which Borg was involved.

A contract laying down that Pace had to pay Borg Lm7,500 had been drafted but it was all a scam as Pace said he had not paid Borg a single cent.

Pace said the meeting called for the signing of the contract was held in his office in Merchants Street, Valletta and there were several others present there. These included the late accountant Lino Cauchi, Pio Camilleri, Camilleri`s brother Andrew, who was also an accountant, and Notary Joseph Saydon.

Before the contract was signed there had been an argument between Borg, Pio Camilleri and Cauchi. Borg did not want to sign the contract but after some heated litigations, he signed it.

Pace said Borg was very pale and appeared terrified. "Camilleri was threatening him and I was afraid as well. Pio Camilleri wanted to have the lands transferred to one of his companies but Lorry Sant had told me he had enough land on his companies and wanted these transferred to my company.

"I was not too happy about this but Sant told me that the Café Premier, Australia Café and the Magic Kiosk were all on government-owned land and I would wake up and find nothing," Pace testified.

He said he never tried to build on property transferred onto his company or tried to sell it. However, he later learnt that Pio Camilleri was trying to sell the property.

"Lorry Sant used to decide whether property was registered with one of Pio Camilleri`s companies, Tor Ltd or Losreys Ltd, or mine. Lorry Sant used to sign the building permits," Pace said.

He said the plots of land registered on his company were for Sant. "I did not even know where they were situated. I obeyed him when he instructed me to transfer them to my company as otherwise my business would have fizzled out. This was not the first or last time I had been threatened," Pace said.

Pace said he knew that a bomb had been planted outside Borg`s home after the 1981 elections and two bombs had been planted at his home and at the Magic Kiosk.

"I was under threat for 20 whole years. When Lorry Sant, the `Capo`, was still alive, I had two bombs planted against me. The one planted by the flats where I lived could have easily killed 15 people and I had to pay Lm19,000 to repair the damage caused. The bomb planted at Magic Kiosk cost me Lm95,000 in damages.

"When I spoke to the police, I had told them I suspected that the bombs were planted by Pio Camilleri," he said.

Pace said Camilleri started asking him for money. "Dr Joe Buttigieg had told me to see what to do and pay Camilleri as otherwise blood would be shed. Shortly after, Camilleri had tried to pin me against the wall with his landrover.

"I than gave Camilleri Lm200,000, Lm170,000 of which were given by cheque given to him in the presence of Dr Joe Buttigieg and another Lm30,000 were paid by Mid-Med Bank cheque," Pace said.

Some time later, a middleman from Naxxar, whose surname was Gaffiero, urged him to sell the properties at Fgura and Lorry Sant called him shortly after to sell them to Vince Camilleri, of Vinca Ltd. However, Pace said he had told Sant there was a warrant of prohibitory injunction forbidding their sale.

"Things often happened in this way. Pio Camilleri would sell property and he would share the spoils with Lorry Sant. On a property in Marsascala, Camilleri took Lm50,000 and Lorry Sant took another Lm50,000. I simply signed when I was told to do so," he said.

Pace said Camilleri knew there was a warrant of prohibitory injunction but a promise of sale was made before (Notary) Tonio Spiteri and Pace said he had been paid Lm100,000, which he had deposited in an account and then gradually passed the money on to Lorry Sant.

"I used to give Lorry Sant amounts ranging from Lm4,000 to Lm10,000 in cash. He always wanted money to be given to him in small amounts so that it would not be conspicuous," Pace said.

"Pio Camilleri had wanted Lm200,000 and I was made to sign another promise of sale with Vince Camilleri with a gun against my back.

"Instead of Lm184,000 (as the first promise of sale had indicated) Vince Camilleri ended up agreeing to pay Lm253,000. I was also made to sign a lot of guarantees in front of Prof. Ian Refalo," Pace said.

"In the end, I had given Lm200,000 to Pio Camilleri and Lm220,000 to Lorry Sant. I gave Sant Lm100,000 and Lm120,00 between 1992 and 1993," Pace said.

The case continues.

Dr Edward Debono appeared for Borg.

Dr Keith Bonnici appeared for Pace.

Prof. Ian Refalo appeared for Vincent Camilleri.