Nazzareno Vassallo, chairman of the Vassallo Builders Group, has denied ever having discussed the transfer of government property in Qormi with Jason Azzopardi, the former minister of lands.

Mr Vassallo issued a statement after Justice Minister Owen Bonnici last week criticised the way the property, formerly used as a brewery, was transferred.

It was claimed that Mr Vassallo and Dr Azzopardi had discussed the issue and Mr Vassallo was promised 'a compromise'. The minister also said the government lost some €7m in potential revenue because of the way the deal was made.

"I categorically deny ever having had meetings with Dr Azzopardi or reaching some sort of agreement with him. I never discussed this issue with Dr Azzopardi when he was minister for lands or since. This also applies for the members of his secretariat," Mr Vassallo said. 

He observed that Dr Bonnici had also claimed that that someone had made a sworn statement to back the allegations.

Mr Vassallo said that if this statement truly exist, it was a false oath.  

In a reaction Dr Bonnici in a statement issued by the Labour Party, stood his ground. He pointed out that on May 20, 2011 the Lands Department had written to Mr Vassallo's company to revoke a contract signed illegally on December 3, 2009 about the site in Qormi which was worth in excess of €8 million.  

Mr Vassallo then met Jason Azzopardi, then responsible for lands, and he was told that a compromise would be reached. 

The compromise was the appointment of three architects who acted on a valuation made in 1990 of just €700,000. 

More facts would be released shortly, the PL said.