A controversial development permit issued for the construction of a three-storey commercial building in an Outside Development Zone in Burmarrad was only possible after the involvement of the Land Department, The Sunday Times of Malta has learnt.
This newspaper revealed last week that a permit for a commercial development was approved by the planning authority on a site that could only be used for agricultural activities until 2063.
The public land was given to Farmer’s Wine Co-operative in 1965 on emphytheusis (a long-term lease) for 99 years to be used for wine production. Yet the development permit recently approved is for a retail outlet, storage and offices on three floors.
The company behind the development is BCBT Properties, in which Burmarrad Commercials is a main shareholder. Farmer’s Wine sold the lease to BCBT for over €815,000 in 2008. At that point, the condition of use for agricultural activities still stood. In October 2013, the government transferred the public land to a third party as compensation for the expropriation of a large tract of land in Mosta.
The law states that redemption of such a lease should not have meant it loses its agricultural function, lawyers explained. This can only be done through a parliamentary committee or through a tender for the sale of the lease. But the Land Department insisted neither of those procedures was necessary.
“The Ganado family acquired the emphytheusis and full ownership in 2013 from the government,” a government spokesman said.
BCBT projects bought the Burmarrad land from the Ganado family soon after the government transferred ownership. The Ganado family – the third party involved in the deal – said it was the Land Department that offered the land in question.
“We were owed millions for land expropriated in 1988. Our only condition was that if we were going to get land in return it would be one that could be sold immediately. We had no use for the land. They informed us there was someone interested in buying it,” Max Ganado said.
The government keeps saying there’s no money and the only option offered is land
The contract for the transfer of the land to the Ganados stated the family was owed compensation for a large area (over 31,000 square metres) expropriated in Mosta in 1988 valued at close to €6 million excluding interest.
The contract also notes the family would be selling the land, showing the government was aware who would ultimately be acquiring it.
The developers applied pressure to get a commercial development permit for the site for a number of years under the former administration but failed, sources said.
It was the Land Department that brought in third parties, leading ultimately to the permit. The value of the Burmarrad land the Ganado family received was €845,000.
“This is a typical case of people waiting for decades to be compensated for expropriated land. The government keeps saying there’s no money and the only option offered is land. It’s shocking to have to wait all these years and the compensation so far is still a drop in the ocean in terms of what we’re owed,” Dr Ganado said.
Mepa is insisting the ODZ permit would not take up agricultural land, since it was already committed to industrial activity. In 2009, the planning authority issued an enforcement notice for change of use from agricultural activities to vehicle storage. But Mepa said its use was then regularised by means of a permit issued in 2011 for internal alterations.
When the government decided to expropriate half a building in Old Mint Street from Mark Gaffarena earlier this year for €1.65 million, he was immediately paid over half a million in cash.
Mr Gaffarena made a profit of €685,000 in less than two months – a deal exposed by this newspaper that is subject to two ongoing investigations.
caroline.muscat@timesofmalta.com