Government probes subletting of Freedom Square outlets

A number of shops in Freedom Square, Valletta that were allegedly being illegally sublet for huge sums of money are being investigated by the government, The Times has learnt. The Parliamentary Secretary for Land, Jason Azzopardi confirmed when contacted that investigations were under way and action would be taken accordingly.

When government property was leased, he explained, it was illegal to transfer the lease or sublet the property. It was not a criminal offence but it remained illegal.

"We are taking it extremely seriously because I was personally disgusted when I discovered the shops were being sublet for huge sums of money when they were being leased from the government for a pittance. We are investigating and action will be taken," he insisted.

He hinted that, although the investigation was focusing on the shops in Freedom Square, it could possibly spread to other shops around Valletta.

Dr Azzopardi said he had individually met tenants of the 16 shops in part of Freedom Square who had to move out by December to make way for the Renzo Piano City Gate project. To move out, the shop owners will be offered compensation, either financial or in the form of alternative premises.

The affected shops in Freedom Square had a lease renewable every six months, Dr Azzopardi explained. Of the eight shops on the opera house site, one had no legal title whatsoever and had been tolerated over the years while the others had been served with a stop rent notice about four years ago due to the project. However, the Land Department had been accepting money from them as compensation for use.

Dr Azzopardi said the majority of shop owners preferred being given alternative premises rather than financial compensation as they all wanted to continue with their business.

Asked which alternative pre-mises were being considered, Dr Azzopardi mentioned the area above Burger King as an option. However, there was no space for everyone there.

He said he was meeting each tenant individually to hear their views and to show them the government did not simply want to throw them out. They understood this and were grateful for the advance warning.

Dr Azzopardi asked the shop owners to provide their profit and loss accounts covering the last five years of operations and also information on the number of employees they had.

"We gave them the opportunity to identify any government property that is vacant and which could possibly be given to them. Obviously, it's going to be our call but by December it has to be settled," he said.

mxuereb@timesofmalta.com