The Nationalist Party has backed up its claims that a controversial €250,000 loan from a construction magnate was paid last year, by releasing scans of the cheque and an official notice.

The Times of Malta had reported earlier this month that the PN had finished repaying the loan to developer Żaren Vassallo six months ago.

A letter signed by both PN financial controller Malcolm Custo and Mr Vassallo, seen by the Times of Malta, had shown that the final repayment of the loan had been finalised on August 1.

The loan has come under fire from the Labour Party, which is questioning, among other things, its “suspicious timing”.

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The loan had been made a few weeks after Mr Vassallo acquired a large plot of land in Qormi for an amount the National Audit Office said was under market value.

The former Lowenbrau factory site in Qormi was transferred for €706,000 when it was value at some €7.83 million.

This newspaper can now publish both a copy of the letter and a scan of the final repayment by cheque sent to Mr Vassallo.

Asked about the loan and its alleged link to the deal, PN president Anne Fenech had said there was “absolutely and categorically no connection between the two”.

Earlier this month Justice Minister Owen Bonnici said the PN had a lot to answer for and questioned conflicting media reports – one which said the loan had been repaid, and another which said outstanding debts were still being settled.

Dr Fenech explained that the PN still had outstanding debts with Mr Vassallo explaining, however, these were of a commercial nature related to his services as a contractor.

PN secretary general Rosette Thake insisted the party had not been in contact with Mr Vassallo about the loan since it was repaid. There was no evidence of any link between the loan and the land purchase, she had said.

Despite this, Ms Thake was quick to add that the party had since changed its financing structures – to ensure against large sums coming from individual contributors.

In a reaction, the Labour Party had said the PN had jumped out of the frying pan into the fire by revealing that it had other debts with Mr Vassallo. What did these debts consist of, the party had asked.

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