Projects Malta Chairman James Camenzuli could not confirm under oath in court on Monday whether the contract transferring the former ITS site in St George's Bay to the db Group, actually reflected the bid accepted by the evaluation committee.
Mr Camenzuli was speaking from the witness stand in libel proceedings which the group, headed by Silvio Debono, had instituted against Daphne Caruana Galizia.
The group plans to build apartments, a hotel and a retail centre on the site.
Mr Camenzuli explained how he has occupied the position of Projects Malta Chairman since July 2017 and had also served as chairman on the Evaluation Committee tasked with assessing bids in relation to the development of the site in St George's Bay.
After exhibiting a summary on the sequence of events which culminated in the signing of the highly-controversial deal, Mr Camenzuli was asked whether any valuation of the property in question had preceded the choice of the preferred bidder.
Pressed by Dr Joseph Zammit Maempel, counsel to the Caruana Galizia family, the chairman could not supply an answer, pointing out that the db Group had been chosen as the preferred bidder since they met the requirements laid down in the Request for Proposals.
Pointing out that as chairman of Projects Malta the witness ought to be able to supply the requested information, Dr Zammit Maempel once again asked whether the final deed had reflected the bid accepted by the Evaluation Committee, ultimately prompting Mr Camenzuli to state that he would “have to check” and return to court with the necessary documentation.
Also testifying in Monday’s hearing was Peter Mamo, Deputy CEO of the Lands Authority, who at the time of the deal had occupied the post of Commissioner of Lands, representing the government on the final deed.
Mr Mamo explained how pre-contractual negotiations were always handled by consultants, insisting that the Lands Department had no say whatsoever in what went on at negotiations stage and had no idea of the valuation of the property involved.
Asked who had issued instructions regarding the signing of the contract, Mr Mamo recalled that the department had been directly instructed from the Office of then Parliamentary Secretary within OPM Deborah Schembri, responsible for Lands.
Asked whether instructions had been issued over the phone or via email, Mr Mamo explained that although he always insisted on written communication, he would have to check this out before the next hearing.
A representative of Deloitte Malta, a local operator in business management consultancy services, explained that the company had been tasked by Projects Malta to evaluate the bid by the db Group so as to assist the government in determining the price of the deal. Raphael Aloisio explained that a revision of conservative assumptions which had fixed the original bid at €17 million, set the re-evaluated price at €56.1 million, €44.9 million for residential and office space, €8.7 million for retail development and €2.5 million for the hotel.
Asked by Dr Zammit Maempel whether €50 per square metre of hotel space in a prime location was realistic, Mr Aloisio replied in the affirmative.
During Monday’s hearing, Louis Gauci, a director in hotel and construction industries, as well as Ivan Portelli, a director within the VAT Department, both mentioned by the assassinated journalist in her stories about Mr Debono, also took the witness stand.
Mr Gauci explained how his “old friend” and business partner Silvio Debono had once asked him to join him on a trip to the UK where he was planning to purchase a car and travel back to Malta overland. Since Mr Portelli, another friend of Mr Gauci, had earlier covered the same journey when purchasing a Mercedes from the UK, the two had joined Mr Debono and another friend in Leeds, covering the trip back home in three or four days, whilst traveling in two cars.
Mr Portelli explained how after being targeted by Ms Caruana Galizia as the “taxman” who had accompanied Silvio Debono when purchasing his Maserati from the UK, he had been cleared by an internal ministerial inquiry after he had presented all necessary proof to rebut the journalist’s allegations.
Mr Portelli confirmed that he had instituted no suits against the former journalist. The db Group had, however, last year slapped Ms Caruana Galizia with 19 libel suits over her comments in respect of the db Group after the latter’s ITS property deal with government.
The cases continue. Dr William Cuschieri as counsel to the db group.