Mambra Electonics owner Joseph Pavia is willing to mortgage his villa in Sta Maria Estate to pay his debts with the VAT Department, a court heard this morning.

Lawyer Jose Herrera told Judge Tonio Mallia that he had checked how much his client really owed the department and the sum amounted to €850,000.

Of these, €350,000 were owed in value added tax, eco contributions and social security payments. The remaining €500,000 were for fines and penalties for late payments.

Dr Herrera said his client, who was still abroad, felt he was overcharged in certain payments of eco contribution so he did not pay these in full. Dr Herrera said he had told the department that his client was prepared to mortgage his villa in Sta Maria Estate but he wanted to keep his other property in Zurrieq because he wanted to live there.

He asked the court to grant his client more time to reach an agreement with the department and said that his client was ready to cooperate with the authorities.

The court granted both parties until September 10 to reach an agreement.

Mambra's shop in Luqa closed down for a long shutdown in July but never re-opened on August 5 as it was meant to do. Mr Pavia's sister, who worked at the shop, informed employees not to return to work a day before the shutdown was to end.