The Prime Minister has instituted a court case for the government to be handed back all assets given to Mark Gaffarena as part of the expropriation of his part-ownership of a palazzo in Valletta.
The case was instituted against Mr Gaffarena and his wife Josielle.
The court was asked to revoke all transfers made in terms of the two expropriation contracts. It was also asked to order the Gaffarenas to return all assets given to them.
The court was also asked to issue a warrant of seizure equivalent to the funds already paid to the Gaffarenas and a warrant to stop the Gaffarenas from transferring properties handed to them by the government.
The government paid €1.65 million for part ownership of the Valletta property that Mr Gaffarena had bought for a fraction of the price just weeks earlier. He made a profit of €685,000 in less than two months, apart from acquiring parcels of land in exchange equivalent to the size of more than 10 football pitches.
It was subsequently reported that the land given to Mr Gaffarena was worth substantially more than its stated value.
The prime minister's action today follows a damning report by the Auditor General, who found that the public interest was not safeguarded in the expropriation deals. The report led to the resignation of Parliamentary Secretary Michael Falzon.
LIST OF PROPERTIES HANDED TO MR GAFFARENA
Two plots in White Rocks - Land measuring 3,735 square metres ).
A property in Manuel Dimech Street, Sliema
Land in Tal-Ħandaq, Qormi, measuring 9,980 square metres
Land in Żebbuġ measuring 26,223 square metres
Land in Ta’ Kandja, Siġġiewi, measuring 5,992 square metres
PN; MUSCAT'S ACTION IS TOO LITTLE, TOO LATE
In a reaction, the Nationalist Party said the prime minister's action was too little, too late, and Dr Muscat should have acted nine months ago when the story broke.
He had acted now only because he had no choice.
Furthermore, despite the Auditor-General's condemnation, Dr Muscat had chosen to retain former Parliamentary Secretary Michael Falzon in the Labour parliamentary group.
"Whenever Dr Muscat is called upon to take action over corruption, his only interest is self-preservation rather than raising standards in this country," the PN said.
As a result, the government was "in a crisis of corruption."