Magic Kiosk, Sliema's controversial turquoise landmark, began its vanishing act yesterday morning as the owner watched the government confiscate his belongings, including up to €70,000 in cash.

Government workers began demolishing the aquarium-like structure, which has dominated St Anne Square for some 30 years, at 5.30 a.m. The move paves the way for the embellishment of the square, which gives residents a breather, but left employees who turned up for work standing in disbelief.

The government had warned it would not renew the lease contracts with the tenant after they expired last month and gave an ultimatum for eviction. Since this was not done, all the items removed will become government property, including television sets, equipment, alcohol and the cash in the register and safe, which the tenant, Joe Pace says, amounted to between €60,000 and €70,000.

Mr Pace, 73, was served with an eviction notice some days ago but applied for the court to issue a warrant of prohibitory injunction on grounds of discrimination. The request was rejected and a hearing was set for Friday.

In the circumstances, Mr Pace expected the project to be put on hold until the court settled the matter but his hopes were crushed yesterday when family members woke him up at the crack of dawn to tell him the restaurant was being dismantled.

His 20 or so employees who turned up for a normal day's work were stunned when they found their workplace being torn apart.

Paul Cini, who worked at Magic Kiosk for 30 years, said that, although he saw it coming, he had had no chance to seek alternative employment.

Another employee, Martin Micallef, 53, who worked there for 25 years asked: "What am I supposed to do now? I have a wife and child. Who is going to pay my debts now?"

The first items to be removed were the tables, chairs and ceiling fans, followed by solar water heaters and the tanks on the roof. In the afternoon the roof was ripped up by a crane.

The restaurant was still serving customers until Thursday evening, so the cash register was full of money and the kitchen fully stocked.

Mr Pace, who remained level-headed, seemed resigned to the fate of his beloved restaurant.

"I have dealt with politicians in the past. I know how these things are done. I expected them to wait for a court decision. That's why I didn't move out. But I guess this goes to show the government's prepotency."

He was particularly disappointed that he was not called to open the establishment and take account of all his belongings or to take the readings of the electricity meter beforehand.

"The only thing they gave me was my diary with telephone numbers," manager Louis Scicluna said.

"They are acting as if we are thieves. Actually, they are acting as if they are thieves. It's like an organised robbery," his wife, Mr Pace's daughter, said.

According to Parliamentary Secretary Jason Azzopardi, yesterday's actions were "reasonable" because Mr Pace had been given a number of warnings to leave but he chose to ignore them. He said the government had forged ahead after getting expert legal advice.

Tens of Works Division officials and policemen were on the scene as many onlookers watched the Sliema Ferries' landmark being dismantled.

The restaurant was built on government land and was rented by the Pace family for the past 32 years through two contracts. One part of the lease expired four years ago and was never renewed while the second expired on December 19. The government had filed a judicial protest some months before informing Mr Pace the lease would not be renewed.

According to the Land Department, two eviction notices were issued after that date but Mr Pace expected the matter to be resolved in court and so he did not move out, even after a permit was issued for the demolition to take place.

The decision not to renew the leases was made so that St Anne Square could be returned to its former glory as an open public space with a small wooden kiosk, an initiative of Rural Affairs Minister George Pullicino. Mr Pace had offered to fund the project himself if he could run the small kiosk but this offer was refused.

"The former tenant has no ownership of the land and therefore no right to run the new kiosk," Mr Pullicino said when he visited the site yesterday.

The owner had said the Magic Kiosk was being targeted by people with a vested interest.

cperegin@timesofmalta.com