A timeline of the negotiations between the government and Mario Camilleri – one of the Café Premier owners – shows that Prime Minister Joseph Muscat was personally involved in all the crucial stages of the deal.
The National Audit Office gave a step-by-step timeline of the five-month negotiation process that took place on the €4.2 million deal struck between the government and Cities Entertainment Ltd.
Its investigation revealed that Dr Muscat had initiated talks with Mr Camilleri and instructed his close collaborators on how to proceed, including on the amount offered to buy back the government property.
Noting it was Dr Muscat who gave the green light on how the Government Property Department architect was to carry out the property valuation, the NAO said the department was kept in total darkness as to what was going on. The architect even admitted that, contrary to procedures, he did not inform his superiors about Dr Muscat’s assignment on Café Premier.
The department was only informed about the deal after negotiations were finalised during another private meeting between Dr Muscat and Mr Camilleri in mid-July 2013.
Pre-2013 election: Opposition leader Joseph Muscat holds two meetings with Mario Camilleri, co-owner of Café Premier. Dr Muscat says issue was never discussed.
March 10, 2013: Labour wins election. Café Premier ceases operations.
April 4, 2013: Mario Camilleri writes to Prime Minister Joseph Muscat requesting an appointment to discuss Café Premier. Dr Muscat replies on the same day giving Mr Camilleri an appointment for the following week.
April 17, 2013: Mr Camilleri meets Dr Muscat and offers him the opportunity to buy back Café Premier. Dr Muscat agrees to follow up.
May 2013: Dr Muscat instructs his adviser (architect John Sciberras) to contact Mr Camilleri to explore the Café Premier offer and report back to him.
May 6, 2013: Dr Muscat exchanges further e-mails on Café Premier with Mr Camilleri
May 17, 2013: Mark Camilleri (the son of Mario Camilleri) exchanges correspondence with Dr Muscat’s adviser on ongoing negotiations. Mark Camilleri tells Dr Muscat’s adviser the company is also negotiating with third parties.
May 18, 2013: Mr Sciberras asks Mr Camilleri for a proposal for negotiations on the sale of Café Premier.
May 20, 2013: Mark Camilleri sends proposal to Dr Muscat’s adviser requesting €5.3 million.
Early June: Mr Sciberras recommends that a senior architect at the Government Property Department make a valuation of Café Premier. Dr Muscat approves and gives green light.
June 4, 2013: The architect completes his valuation report and submits it to Dr Muscat’s adviser. Government Property Department’s management is not made aware of its architect’s assignment commissioned by the Prime Minister against procedures.
June 4, 2013: Mr Sciberras asks for the Prime Minister’s authorisation to table an initial offer of between €3.5 million and €4 million to Mario Camilleri. Dr Muscat gives authorisation on the same day.
June 11, 2013: Mark Camilleri makes a counter-offer of €4.2 million to Dr Muscat’s adviser.
June 25, 2013: Mr Sciberras informs the Prime Minister of Café Premier’s counter offer of €4.2 million
June 25, 2013: Dr Muscat directs his adviser to seek the Commission of Inland Revenue’s views on a report about tax dues in case of transfer of shares of Café Premier. Commissioner of Inland Revenue replies to the Prime Minister on the same day.
July 2, 2013: Dr Muscat instructs Mr Sciberras to make another counter-offer of €3.9 million. Mr Sciberras makes offer to Mark Camilleri.
July 5, 2013: Mark Camilleri replies and makes another proposal, this time asking for €4.5 million.
July 9, 2013: Dr Muscat instructs Mr Sciberras to inform Mario Camilleri that the government’s final offer was €3.97 million.
July 11, 2013: Mario Camilleri sends e-mail to Dr Muscat requesting a meeting to close the deal. Dr Muscat informs Mr Camilleri he is willing to meet him the following week.
Following week (no date provided): Dr Muscat meets Mario Camilleri, together with chief of staff, Keith Schembri, principal permanent secretary Mario Cutajar and Mr Sciberras. An agreement is reached to pay €4.2 million for Café Premier.
August 7, 2013: Dr Muscat instructs Mr Cutajar to consult with the Finance Ministry and prepare a Cabinet memo.
September 2, 2013: Mr Cutajar asks Mr Sciberras to help him draw up the Cabinet memo.
September 17, 2013: Cabinet approves the €4.2 million deal for Café Premier.
September 18, 2013: For the first time, Cabinet informs the Government Property Department that a deal had been reached over Café Premier and instructs it to prepare a contract according to the Cabinet decision.
January 29, 2014: The government and Café Premier sign a final deal to the amount of €4.2 million.