The €4.2 million government deal to buy back the public lease of Cafe Premier “stinks” and Prime Minister Joseph Muscat should resign over his personal involvement in negotiations, the Nationalist Party said yesterday.

Deputy leader Beppe Fenech Adami said “the lies” being told to cover Dr Muscat’s involvement in the deal were scandalising.

He was referring to Dr Muscat’s declaration that, although he had met one of the company directors before the election, talks on the deal only started after he became Prime Minister and he was not personally involved.

Dr Fenech Adami referred to meetings and correspondence involving the Prime Minister that were listed in a report by the National Audit Office on the deal that was made soon after the Labour Party was voted into power.

The Prime Minister even “ordered” the payment to be made via e-mail.

The report highlighted shortcomings that “detract from the prudence expected” when deciding to undertake disbursements of such magnitude.

The Auditor General said a lack of transparency and poor governance marked the negotiations. He said a sum of €210,000 paid in commissions was “inappropriate”.

Dr Fenech Adami noted that the establishment closed its doors the day after the election.

A few days later, Dr Muscat again met the director.

“The truth regarding the Prime Minister’s personal involvement in negotiations is outlined in the report. By his own yardstick, set before the election, the Prime Minister should resign,” Dr Fenech Adami said.

Opposition lands spokesman Ryan Callus said Dr Muscat went against all established procedures, as was confirmed by the Auditor General.

The report noted the “government’s reluctance to involve the Government Property Division (known as Land Department) early in negotiations”.

Although the government said it noted the shortfalls outlined in the report and set up a working group to ensure they were not repeated, the Opposition said this was not enough.

It was clear the Prime Minister should not get involved in negotiations to pay off a private company’s debt with taxpayers’ money, the PN said. The focus should now be on accountability, it insisted.

The Labour Party said in reaction that Simon Busuttil’s allegations on the case were completely made up for partisan reasons. It insisted that no discussions about Cafe Premier had been held before the election.

The Labour government said it did not fear making decisions to get back from the owners €1 million left pending by the previous administration for the site to be returned so it could be used for public and productive aims. The site remains unused.

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