(Adds PN's reply)

The Labour Party said today that the acquisition, for €2.2 million, of the HSBC property in Valletta for 11 years by the previous government, against the advice of permanent secretary Alfred Camilleri raised a number of questions which deserved an answer.

Addressing a news conference this afternoon, PL deputy leader Toni Abela and MP Silvio Schembri said that former Finance Minister Tonio Fenech signed in the deal in spite of the fact that Mr Camilleri had expressed his disapproval with former Land Minister Jason Azzopardi.

Mr Camilleri had told Dr Azzopardi that the deal would most probably be met with criticism from the Auditor General and the Public Accounts Committee, they said.

Dr Abela said that the argument that the place was acquired to start being used immediately did not make sense because a report commissioned after the deal clearly showed that it needed repairs for which another €250,000 were needed, according to Mr Camilleri.

Moreover, Mr Fenech went for the highest offer and the place was only put to use by the present government.

Mr Schembri asked why had the place not been bought outrightly and what was it needed for so urgently. And if it was needed so urgently, why was it kept vacant for more than two years.

He asked why had the former ministers gone against the advice of the permanent secretary and if Mr Fenech and Dr Azzopardi would take the case to the Auditor General.

He asked why the engineer’s report was commissioned after, rather than before, the deal was made and why had the highest bid been approved when the negotiating team was supposed to be safeguarding the country’s interests.

Was it normal for a deal of more than €2 million to be approved in an hour, he asked.

Dr Azzopardi said in Parliament earlier this month that the previous government had planned to move the Attorney General’s office and other entities operating from the Palace to the building so that the Palace could house the Valletta council.

LABOUR PARTY 'CLUTCHING AT STRAWS'

In a reply, the Nationalist Party said Dr Abela should have spoken about Parliamentary Secretary Michael Falzon’s involvement in the acquisition, by BOV, of the House of Four Winds.

This was when facts about his unique ‘early termination benefit from BOV’ and his involvement in the Gaffarena scandal were emerging every day.

On the other hand, Mr Schembri could have given a thorough explanation of all the roles he was given by this government, and the minimum of €65,000 he was being paid every year.

Instead, they chose to repeat half-truths to deceive journalists and the public.

“If Labour really believes that there is some wrongdoing in this deal, it should publish all the files, together with the files related to the Cafe’ Premier and Old Mint Street scandals,” the PN said.

Dr Muscat’s party, it said, was now really clutching at straws.

“Today’s press conference is really a storm in a teacup.”

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