The sudden expropriation of a Valletta building from Mark Gaffarena “stinks”, and those involved should be brought to justice, said the man who sold him his family’s part of the property.
Last week this newspaper revealed how the government bought half the ownership of a property in Old Mint Street for €1.65 million earlier this year, a decision which prompted calls for an investigation.
The government paid Mr Gaffarena, who has multiple business interests, through different parcels of land and €516,390 in cash in two separate contracts.
Questions were raised about why the government is expropriating the property in a staggered manner after it was bought by Mr Gaffarena.
The government first expropriated the one quarter ownership Mr Gaffarena held, and then expropriated the second quarter a few weeks after Mr Gaffarena had just bought it. He made a profit of €685,000 in less than two months.
The Sunday Times of Malta contacted Tonio Mercieca who sold the second quarter to Mr Gaffarena. He said he failed to understand why the government had not dealt with him directly.
“We inherited our part ownership of that property. We sold our quarter to [Mr] Gaffarena for €139,762. It was expropriated a few weeks later for €822,500.
“I don’t mind people making money, but this stinks,” Mr Mercieca said. The ownership of the 445-square-metre property was split into four quarters, each owned by different parties.
The government admitted it never entered into negotiations with any of the other owners.
Mr Mercieca said Mr Gaffarena has already sealed a promise of sale agreement to acquire another portion of the property.
I want the people within government who were part of this to be held accountable
He is negotiating contracts to acquire what is left, knowing the government will be expropriating the rest of it.
After this newspaper revealed the story, the government said it intended to buy the other half next year. Mr Gaffarena’s recent promise of sale agreement expires in April next year.
“I don’t mind people making money and I don’t begrudge what Mr Gaffarena got. But if the government wanted this property so badly why did it never enter into negotiations with us? I want the people within government who were part of this to be held accountable. I want justice,” Mr Mercieca said.
The Opposition called on the Auditor General to probe the case following further revelations by this newspaper that the parcels of land given to Mr Gaffarena as part of the payment were worth double the estimate of government architects.
Independent architects said the value of the land he was given was undervalued by at least €1.6 million. Mr Gaffarena has strategic and commercial interests in each parcel of land he was given.
The real value of the payment he got for half ownership of the Valletta property therefore exceeds €3 million.
The PN also questioned the urgent need for expropriation of a property used by the Building Industry Consultative Council – a small council that can easily have its offices accommodated in another government property.
BICC is chaired by Labour MP Charles Buhagiar who was the first to receive a letter from the owners threatening the council’s eviction because it had no legal right to use the place.
Mr Buhagiar was Mr Gaffarena’s architect on a number of projects in the past, including a development application on land at Tal-Ħandaq that Mr Gaffarena has now been given as payment for the Valletta property.
Planning Parliamentary Secretary Michael Falzon approved the deals on behalf of the government, insisting the government would have needed to leave the premises in 2028 had it not acted.
Yet this applies to all properties the government is renting out, except those used for residential purposes.
Several attempts to reach Mr Gaffarena by phone throughout the past week have been in vain.