Former parliamentary secretary Michael Falzon used his political discretion to approve another €370,000 payment to the Gaffarenas at the same time as the controversial dealings on the Valletta property.

Although never mentioned by the government, the National Audit Office accidentally stumbled upon a payment made to Joe Gaffarena just days before the €3.4 million deal struck with his son, Mark, on the property in Old Mint Street, Valletta.

The new findings surfaced by chance during the NAO investigation on the Valletta property. While sifting through e-mails between the parliamentary secretary and the Land Department’s top brass, NAO officials encountered references to other payments made to a ‘Mr Gaffarena’. Questioned over these e-mails, Dr Falzon told the NAO these had nothing to do with the Old Mint Street property but referred to another payment given to Mark Gaffarena’s father for land that had been expropriated in 1987 and was still due to compensation.

The NAO found that two payments of €184,691 each were effected on October 30, 2014 and January 12, 2015 to Gaffarena Holdings Ltd. Both Joseph and his son Mark hold shares in the company.

The National Audit Office criticised Dr Falzon for his latest intervention in this new
payout, and said the discretion he exercised in determining who was to be paid for expropriations lacked “fairness and transparency”.