The government was failing to be honest, transparent and accountable to the public and saying the truth on the Café Premier deal, the Opposition said yesterday, as it listed 10 “lies” by the Prime Minister in one week.
The people deserved to know the whole truth about the Café Premier scandal and Prime Minister Joseph Muscat should shoulder political responsibility, PN deputy leader Beppe Fenech Adami insisted at a press conference.
The €4.2 million deal made by the government to buy back the public lease of the iconic Valletta property was marked by a lack of transparency and poor governance, according to an investigation by the Auditor General.
News confirms the Prime Minister’s personal involvement in what is considered the biggest scandal involving politicians in recent years
“News on the Café Premier deal over the last week confirms the Prime Minister’s personal involvement in what is considered the biggest scandal involving politicians in recent years,” Dr Fenech Adami said.
Countering criticism that Café Premier director Mario Camilleri had made a €1,000 donation to his party, Dr Beppe Fenech Adami stressed the PN did not get bribed.
“The PN got €1,000 from Mr Camilleri and initiated a court case against him to recoup public finances. We are not the party that gets bribed.
“We are the only party to issue a receipt for every donation. It is the Prime Minister who has to explain the favours being granted,” Dr Fenech Adami said.
Café Premier has been at the centre of controversy after the National Audit Office released a damning report on the sale of the property back to the government in the first six months of the Labour administration.
The Café Premier had run into financial difficulties, racking up thousands of euros in debt. It closed a day before the election and one of the owners, Mario Camilleri, e-mailed Dr Muscat less than a month later to arrange a meeting during which the buy-back proposal was made.
The agreement was concluded in six months and handled by the Office of the Prime Minister. This has raised questions over whether the deal had been agreed before the election, something the Prime Minister and Mr Camilleri have both denied.
The €4.2 million from taxpayers’ money cancelled out all the business’s debts and included a brokerage fee of €210,000 for Mr Camilleri.
The property was transferred back to the government in January 2014 when the sale contract was signed and remains unutilised till this day.
‘10 lies in one week about Café Premier‘
• The Prime Minister said the deal was done to avoid lengthy court litigation. The NAO report says this court option should have been pursued.
• The Prime Minister said the €4.2 million was paid to remove dangers beneath the national library. The NAO report says no danger existed.
• Dr Muscat said the deal was made to pass on the building to the public, but a year later the place remained closed and the Culture Minister has no plans for it.
• The Prime Minister said the place was needed for better access to the national library; “a weak excuse” sidelined in the NAO report.
• Dr Muscat said the matter had been discussed in Cabinet. The NAO report says Cabinet simply rubberstamped the deal.
• The Prime Minister said he met director Mario Camilleri twice. Mr Camilleri said he met him three times.
• Dr Muscat said Café Premier should not be commercialised, when the Cabinet memo in the report said the €4.2 million deal was to commercialise the venue.
• Dr Muscat said he shouldered political responsibility by allowing the Auditor General to investigate. He investigated the case on the Opposition’s initiative and Dr Muscat does not have the power to stop him.
• Dr Muscat said this bailout had not been discussed with Mr Camilleri before the election. The PN said circumstances point to this conclusion.
• Dr Muscat said he had not been involved in negotiations. The NAO report showed he led negotiations.