The Nationalist Party says there was a “whiff of corruption” in the way the “sleazy government” bailed out a bankrupt company to the tune of €4.2 million to take over the Café Premier in Valletta.

Nationalist MPs Jason Azzopardi and Ryan Callus said it “beggared belief” how the government paid so much money on property it owned.

Years back, the property had been given on emphyteusis to Cities Entertainment Ltd. In December 2012, the Nationalist government had started court proceedings to recoup more than €307,000 in ground rent arrears. The company contested the amount.

Three months after the March 2013 general election, Dr Azzopardi said, the court cases by both parties were withdrawn and the property was acquired by the government after paying a total of €4.2 million.

Mr Callus said that, according to the contract both parties had signed, the government had waived the €307,000 in ground rent arrears, €504,000 due in capital gains tax, €193,000 in tax and social security payment arrears, €227,000 in outstanding VAT, €131,000 in water and electricity bills, €2.56 million to settle an outstanding loan with Banif Bank, €3,265 owed to Golden Harvest and €210,000 paid to one of the two directors of Cities Entertainment, Mario Camilleri.

Describing this as “the cherry on the cake”, the two MPs questioned why the police had not probed the claim made by another director, Neville Curmi. Mr Curmi had told the police that the €210,000 given to Mr Camilleri was not money owed to him by the company but consisted of commissions paid to him for reaching the deal, Mr Callus said.

The police had said they had investigated the claims but found no violation of the Criminal Code.

The PN has asked the Auditor General to investigate the matter but Dr Azzopardi said no confirmation had been received.

The people, whose money was being spent, could draw their own conclusions

Asked whether the party was considering filing a complaint with the Permanent Commission against Corruption, Dr Azzopardi said this was not possible because the government had not constituted it. It was therefore “defunct”.

The two MPs said it was “inconceivable” that the government should lie to the media in its attempt not to be forced into furnishing information in terms of the Freedom of Information Act.

Dr Azzopardi claimed that the government had paid the company’s notary €20,000 for services rendered during the negotiations and the eventual deal.

Asked whether he suspected there could have been a pre-election deal on the matter, Dr Azzopardi said that the people, whose money was being spent, could draw their own conclusions.

The government said last week it had sought to re-acquire the Café Premier premises to protect priceless documents of historical value housed in the National Library, located in the upper floors of the same building.

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