The planning authority paid its chief lawyer Anthony Degaetano more than €250,000 as part of a golden handshake, The Sunday Times of Malta has learnt.

Asked to confirm the information, a Mepa spokesman said its chief lawyer had recently received a payment “worth five years of income”. The authority called it an out-of-court settlement after Dr Degaetano won several cases against the Mepa management.

“The agreement was done on the basis that the employee retires from employment with Mepa and renounces any damages which are, or might have been, due to him, including those of a constitutional nature, which the latter won. The out-of-court settlement together with his retirement equate to five years of income for Dr Degaetano,” the spokesman said.

But sources close to the authority denied this was the reason for the payment since the problems which led to the court cases between the Mepa management and Dr Degaetano had been sorted out years ago.

The authority’s management “wanted him out” and the hefty payment given in recent weeks ensured he left Mepa four years earlier than he should have. The move by Mepa was “unprecedented”, they added.

Mepa falls under the responsibility of Planning Parliamentary Secretary Michael Falzon who had to approve the pay-off. Dr Falzon was himself at the centre of controversy after it was revealed he received a similar sum from Bank of Valletta in an early retirement golden handshake with a special clause allowing him to return to the bank.

Mepa lost a court appeal it instituted against a 2005 court judgment that had decided that a charge against Dr Degaetano issued by the Mepa director at the time, Godwin Cassar, was illegal.

The agreement was done on the basis that the employee retires from employment with Mepa and renounces any damages

The case was one of at least five instituted by Dr Degaetano against the authority and third parties concerning the alleged falsification of plans by his neighbour.

Mepa’s legal services will now be provided by law firm Abela Advocates under the same terms and conditions of its current contract for the provision of legal services, which runs until the end of this year, the authority’s spokesman said.

Abela Advocates is managed by Robert Abela, son of former President George Abela. The managing director’s wife, Lydia Abela, is also a partner in the firm and is the executive secretary of the Labour Party.

Questions sent to Mepa asking whether Abela Advocates were appointed following a tender issued or by direct appointment were not answered.

The authority would also not provide information on the total value of the legal services being offered.

Additional reporting: Ivan Camilleri

caroline.muscat@timesofmalta.com