With an outstanding €73 million loan and just seven months left to pay, the Foundation for Tomorrow’s Schools is in dire financial straits.

Evarist Bartolo is trying to take credit for these ideas, to fool people

But while Education Minister Evarist Bartolo said the Government faced a tall task in paying off the debt without compromising its new schools programme, former finance minister Tonio Fenech believed the alarm being sounded is disingenuous.

According to Mr Fenech, the previous administration had already held “extensive” discussions between the finance and education ministries to sell off old school buildings in prime real estate locations.

“The plan was to refinance the loan by gradually selling off these schools in a programmed manner, through a Special Purpose Vehicle,” Mr Fenech told The Times.

While the foundation’s loan agreement with HSBC was set to expire in January, the Government could easily refinance, he insisted.

“All they need to do is sit down with bank officials and agree on extending the loan terms.”

But while Mr Bartolo yesterday acknowledged that talks had been held under the previous administration looking into the possibility of selling old schools, he insisted that alone would not suffice.

“School property evaluations were drawn up, and it was estimated that the Government could raise some €50 million by selling old schools. That’s still quite a shortfall,” he said.

He indicated that the Government was disposed to follow through with this plan, saying it was a “good idea that should be considered”.

Mr Bartolo also suggested that the blame for the foundation’s financial situation rested on Mr Fenech’s doorstep.

“Budgets and financial allocations are set by the Finance Ministry,” he said, “so not finding the necessary money reflects poorly on the previous finance minister.”

But for Mr Fenech, it was Mr Bartolo who was being misleading. “Of course Evarist Bartolo is trying to take credit for these ideas, but he’s just trying to fool people.”