The General Workers’ Union’s written request for a valuation of its Workers Memorial Building in Valletta in 2008 shows it was aware that redeeming the ground rent was not sufficient to bypass the property’s lease conditions, according to Nationalist Party shadow justice minister Jason Azzopardi.
Dr Azzopardi, who was responsible for the Land Department while serving as parliamentary secretary before the 2013 election, said that by ignoring past discussions the union was expecting to get away with paying €16,026 for ground rent rather than purchasing the property for the minimum estimated value of €3.2 million. He confirmed he met a delegation from the union in May 2008 to discuss the matter. What was communicated was that the only way to bypass limitations on the lease of the Valletta premises held by the union was to buy the property (what is referred to as directum dominium).
On May 21, 2008, the GWU wrote to the finance ministry and requested the purchase. Dr Azzopardi, together with former finance minister Tonio Fenech, then informed Cabinet and asked for direction. The Land Department was asked to kick-start the process and make a valuation.
The Sunday Times of Malta revealed last week that the property was valued at a minimum of €3.2 million. However, the architect’s valuation was never handed to the National Audit Office investigating the lease of the union’s property.
He told them he had no knowledge of such information
The NAO concluded in a report tabled in Parliament last month that the union had breached the conditions of its contract when it sublet parts of the property ARMS Ltd, the travel agency Vjaġġi Untours and ciacca Grill restaurant because it did not have a majority shareholding in any of them.
The NAO said the Attorney General should consider legal proceedings against the GWU for breach of contract.
Since the controversy erupted over the issue, the union has argued that by redeeming the ground rent on the property for €16,026 it had extinguished the conditions of the contract.
The union said it was relying on the advice of retired judge and former PL MP Philip Sciberras who has been appointed by the government to chair or form part of a number of independent inquiries including Mater Dei Hospital’s weak concrete structures and the shooting involving former home affairs Minister Manuel Mallia’s driver.
The NAO’s legal advisers and the Attorney General contest the legal advice given to the union.
The NAO did try to source the valuation based on a note in the Land Department’s file have referring to the valuation. Yet “attempts at sourcing” a copy had been “to no avail”. The union insisted it was never told about the €3.2 million value. This newspaper confronted its former general secretary Tony Zarb saying he must have known of the valuation done during his tenure. He declined to comment.
When the union’s new management was asked yesterday whether they had asked Mr Zarb about this, they said he told them he had no knowledge of such information.
The former land commissioner told the NAO he had phoned Mr Zarb to inform him that a parliamentary resolution was necessary for the union’s request to be met.
The NAO report also said Mr Zarb told the former commissioner in a telephone call not to cause any problems because “the pertinent authorities were aware of this matter” and the request should be approved.