When Mark Gaffarena offered to sell to the government part of a Valletta property at the centre of a controversial expropriation he still did not own it though he then made a profit of €685,000, government documents show.

The Sunday Times of Malta revealed that the government paid €1.65 million to expropriate half of a property in Old Mint Street through two contracts signed with Mr Gaffarena.

Mr Gaffarena was paid €822,500 in land and cash for a quarter of the building he owned last January. Then, on February 13, Mr Gaffarena offered to sell another quarter of the property to the government. He actually sealed the purchase of this part on February 26, having signed a promise of sale agreement for it last October. He bought this part for €139,762 and then got another €822,500 in land and cash from the government, the same payment he was given under the first contract. The declaration for expropriation was issued on April 8, after Mr Gaffarena had acquired the property. The previous owners had not been informed of any expropriation.

The deals had been approved by Parliamentary Secretary Michael Falzon on behalf of the government. Replying to questions, Dr Falzon said he signed all government expropriations, as was normal practice. 

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