The government paid €1.65 million for half ownership of a property in Valletta that an investor had bought for a fraction of the price just weeks earlier, The Sunday Times of Malta has learnt.

The property in Old Mint Street, which houses a school and government offices used by the Building Industry Consultative Council, is part-owned by Mark
Gaffarena – who made a profit of €685,000 in less than two months as well as acquiring parcels of land in exchange measuring more than 10 football pitches in total.

Mr Gaffarena, whose family have been at the centre of a controversy over an illegal Qormi petrol station, bought part of the property knowing the government intended to expropriate it. Mr Gaffarena bought the area on February 26 for €139,762. The government expropriated it on April 10 for €822,500 in land and cash.

Architects who spoke to this newspaper said they had never seen such a quick expropriation in Malta, a process that normally takes years.

This was the second time in the space of a few months that the government
bought an area in the same property from Mr Gaffarena. On January 28, it expropriated another quarter of the property from Mr Gaffarena, paying another
€822,500 in land and cash.  The other half of the property is still owned by third parties. A government spokesman said a decision was taken to expropriate part of the property because the owners were threatening to take back the property for their own use.

Mark Gaffarena gained:

• Cash €516,390

• Land measuring 1,663 square metres at White Rocks l/o Naxxar (valued at €70,000) as well as adjacent land measuring 3,735 square metres (valued at €260,000).

• Land measuring 24,073 square metres and another measuring 2,150 square metres in Żebbuġ (combined value of €375,000).

• A property in Manwel Dimech Street, Sliema (valued at €65,000).

• Land measuring 5,992 square metres at Ta’ Kandja, Siġġiewi (valued at €165,800).

• Land measuring 9,980 square metres at Ħandaq, Qormi (valued at €192,810).

Timeline

18-12-2007: Mark Gaffarena buys a quarter of the property for €23,294.

22-01-2015: President declares expropriation of a quarter of the property.

28-01-2015: Government compensates Mr Gaffarena with €822,500 in land and cash.

26-02-2015: Mr Gaffarena buys another quarter of the property for €139,762.

08-04-2015: President declares expropriation of a quarter of the property.

10-04-2015: Government compensates Mr Gaffarena with another €822,500 in land and cash. Mr Gaffarena makes a profit of almost €685,000 in less than two months.

Full story in The Sunday Times of Malta and the e-paper on timesofmalta.com Premium.