The government was until last March actively seeking to acquire Palazzo Verdelin in Valletta, in spite of its categorical denials, The Sunday Times of Malta can reveal.
These internal discussions coincided with Marco Gaffarena’s contacts with the private proprietors of the palazzo informing them that the government was ready to buy them out for €3.5 million.
Home Affairs Minister Carmelo Abela denied in Parliament that the government was considering either buying or expropriating the palace in Archbishop Street, currently housing the Valletta police station.
The Sunday Times of Malta has seen correspondence between the Land Department, the Permanent Secretary of the Home Affairs Ministry and the minister himself indicating that the government was about to decide on how to acquire the palazzo.
According to the correspondence, after asking the Land Department for a copy on the contract in place on Palazzo Verdelin, the Permanent Secretary at the Home Affairs Ministry Kevin Mahoney, asked Home Affairs Minister Carmelo Abela for “political direction” on the next step.
Minister was asked for political direction on the next step
But Mr Mahoney said that “due to the recent media hype on the acquisition of property by the government” (in connection with the controversial Café Premier case) he did not recommend an outright purchase.
Instead, Mr Mahoney suggested to the minister that the Land Department would be instructed to expropriate Palazzo Verdelin. He warned the minister that the latter move could instigate the private proprietors to open a court case against the government. Contacted by this newspaper yesterday, Mr Mahoney said: “I wouldn’t like to comment on this.”
When contacted, Dr Abela denied he was presented with any suggestions on the future of Palazzo Verdelin and the Valletta police station.
“I have already replied in Parliament and categorically excluded buying this property,” he said.
Pressed whether there had been any talks or if he was given advice to expropriate or buy the building, the minister said: “No, never.”
Parliamentary secretary Michael Falzon, directly responsible for the Land Department, has persistently refused to reply to questions on Palazzo Verdelin.
He has also refused to say whether he had ever discussed the future of the palazzo with Marco Gaffarena or any other member of the Gaffarena family.
Dr Falzon has been at the centre of a political controversy after approving the acquisition from Mr Gaffarena of half a property in Old Mint Street in Valletta.
Although he denies any wrongdoing, Dr Falzon admitted he had discussed the issue with Mr Gaffarena himself and that he had approved the deal.
Two inquiries are currently ongoing on the Old Mint Street issue.
The government has not reacted to the recent revelations by The Sunday Times of Malta on the ongoing dealings between Mr Gaffarena, the government and the proprietors of Palazzo Verdelin.
However, parliamentary secretary Falzon told a press conference that the issue would also be dealt with in the ongoing investigation carried by the internal audit department of the Office of the Prime Minister.