The government said this afternoon it accepted the Opposition’s request to the Auditor General to investigate the Mark Gaffarena expropriation deal.

In a news conference this afternoon, the Nationalist Party requested the Auditor General to investigate the deal following a series of revelations by Times of Malta.

The government said it welcomed all kinds of scrutiny and immediately assured all the cooperation by the Auditor General to ensure full transparency.

Times of Malta today revealed that land the government gave Mr Gaffarena as part of a controversial expropriation deal on a Valletta property is worth at least double, according to conservative estimates by independent architects.

Last Sunday, it revealed that the government had paid €1.65 million for half the ownership of a property in Old Mint Street – Mr Gaffarena was paid €516,390 in cash and given land valued at just over €1 million.

However, an independent assessment by experienced architects commissioned by this newspaper shows the parcels of land given to Mr Gaffarena were exceedingly undervalued. Their assessment increased the value of the land by at least another €1.6 million, doubling the value of the payment he got. The land is at Manuel Dimech Street, Sliema; Ta' Kandja, White Rocks, Zebbug and Handaq.

Parliamentary Secretary Michael Falzon defended the negotiations carried out by the government property division, saying the deal was only news because of Mr Gaffarena’s surname. The man, who has multiple business interests, has a controversial track record. Dr Falzon told this newspaper the government wanted to own at least part of the property to avoid having its government departments evicted by 2028.

What the PN asked the Auditor General to investigate:

• Did taxpayers get value for money from the deal?

• Whether the principles of good governance and transparency were followed?

• Whether any public officials or civil servants facilitated the transfer of confidential information to third parties?

• If so, are the actions of such public officials in breach of the criminal code? Were rules governing the actions of civil servants breached?

• When the government property division classified the Valletta property as a building site rather than a historical site, was this an honest assessment?

• Was the advice of the Superintendence of Cultural Heritage sought in the assessment of the property as a building site?

• Has the deal set a dangerous precedent that will force government to expropriate all properties rented out for commercial purposes/offices by 2028 – the deadline for eviction according to the revised rent laws?

• Did the government property division reply to the legal letter received last August? If not, why?

• Who was the government property division negotiating with last year?

• Were the valuations on parcels of land given to Mark Gaffarena accurate and fair according to present market value?

• Whether the government property division used due diligence in giving Mr Gaffarena the property in Manwel Dimech Street, Sliema when its value will increase exponentially next year?

• Was the hefty expenditure justified when citizens have been waiting to be paid smaller amounts for property expropriated decades ago?

• Who made the request for expropriation and who decided to purchase it bit by bit?

• Is it normal practice for the government property division to expropriate property in fractions?

• Does the government really need this building, paying more than €3 million, when it has many other properties that can house the Building Consultative Council?

• Does it make sense for government to expropriate first one quarter and then another quarter when it would have cost less to buy it all at once?

• Was it Mr Gaffarena who chose the land he was given since he has a commercial and strategic interest in all of them?

• Considering the chronology of developments, does the deal merit disciplinary or criminal action against those who did not fulfil their duties?

The PN's letter to the Auditor General can be read in the pdf link below.

See Times of Malta and timesofmalta.com Premium for the estimates on the parcels of land and the legal letter threatening eviction.