The man at the centre of the Café Premier affair has claimed that he had asked someone “close” to former tourism minister Mario de Marco to pass on the message that the place was for sale.

Mario Camilleri has clarified that he never spoke directly to Dr de Marco about a proposal for the government to buy back the leasehold of the loss-making business, but that he had asked someone else to raise the matter with the former tourism minister.

“I was told Mario [de Marco] had been approached but it was too close to the election for the matter to be considered,” Mr Camilleri said.

Mr Camilleri would not divulge the identity of the person he spoke to, insisting he would first have to seek the individual’s permission if it became necessary to name him.

“This happened a few months before the election when my business partner and I decided to sell the Premier,” Mr Camilleri said.

Mr Camilleri, one of the shareholders of Café Premier, told Times of Malta on Wednesday that he had approached the previous administration to see whether the government was interested in buying back the property, mentioning Dr de Marco by name.

Dr de Marco has denied ever having a conversation with Mr Camilleri on the establishment’s finances or telling him that the deal could not be discussed because it was too close to the election.

When contacted, Dr de Marco yesterday confirmed that a third party had mentioned Mr Camilleri’s proposal.

“I was going on a radio programme and the host told me he had been approached by Mario Camilleri to ask me whether the government would be interested in buying back the Café Premier concession,” Dr de Marco said.

He could not recall any discourse on the financial situation of the Premier. “I told this person I don’t see any reason why the government should be interested but I cut short shrift. After all, the Land Department was not even under my wing. What the other person told Mario Camilleri I have no control over.”

I told this person I don’t see any reason why the government should be interested

Dr de Marco recalled having had two meetings with Mr Camilleri prior to the March 2013 election: one of the meetings was where to place tables and chairs in the square; the second was an official visit to the café’s waxwork exhibition.

“These were official meetings in my capacity as a Cabinet member [first as parliamentary secretary and later as minister] because I know Mario Camilleri and had several other casual encounters with him in Valletta,” Dr de Marco said.

Mr Camilleri said he was convinced the previous administration knew Café Premier was for sale because at one point there had been talk that McDonalds was interested in buying the place.

Centre of attention...the Café Premier. Photo: Jason Borg

The fast food chain was at risk of being forced to leave its premises in Republic Street and the owners were looking for alternatives, Mr Camilleri said.

Café Premier has been at the centre of controversy after the National Audit Office released a damning report on the €4.2 million sale of the property back to the government in the first six months of the Labour administration.

Café Premier had run into financial difficulties, racking up thousands of euros in debt. It closed a day before the election and Mr Camilleri e-mailed Prime Minister Joseph Muscat less than a month later to arrange a meeting during which the buy-back proposal was made.

The agreement was concluded within six months and handled by the Office of the Prime Minister. This has raised question marks 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.

Option to withhold €210,000 commission excluded

The government would not consider withholding the controversial €210,000 commission paid on the €4.2 million Café Premiere deal even though the full amount had not been settled yet.

Replying to questions by Times of Malta during a news conference on the introduction of a legal notice against precarious employment, Prime Minister Joseph Muscat said yesterday the contract was “closed”.

According to the contract signed by the government and Cities Entertainment Ltd on behalf of Café Premiere, two more instalments of €590,200 each have to be paid by January 2016.

In a damning report on the deal, the National Audit Office expressed “notable reservations” regarding the manner in which the reacquisition was made and pointed out that a five per cent commission had been paid.

It noted the Government Property Department could have pursued court action to terminate the lease when rent arrears exceeded set threshold. However, the government still opted to reach an out-of-court settlement to buy back the remaining leasehold.

Dr Muscat said yesterday the government was not prepared to spend years in court to have its property back. Nevertheless, a review of the shortcomings flagged in the report had been ordered, he added.

Dr Muscat said it was of great comfort to him that the NAO described the price paid by the government for this commercial property as being fair.

kurt.sansone@timesofmalta.com