Any action against the General Workers’ Union over the breach of a lease agreement would depend on the Attorney General’s advice, the Prime Minister said yesterday.

In a report tabled in Parliament last Wednesday, the National Audit Office concluded that the GWU had rented out part of its offices in Valletta in breach of a lease agreement extension signed with the government in 1997.

According to the contract, the union’s premises can only be leased to entities in which it has 51 per cent shareholding. However, the GWU has no interest in State utility company ARMS Limited, Sciacca Grill restaurant and Vjaġġi Untours, which are occupying parts of the union headquarters.

Contrasting legal views

Joseph Muscat noted that the issue was rather complex, saying that even the Auditor General’s report had “contrasting legal views” on the matter because the GWU at some point had redeemed the lease.

Dr Muscat cautioned that any action might have repercussions on other government leases, including cases of social housing.

“Government property may have been leased at subsidised rates on condition that this could not be sold within 10 years and, so,we have to tread cautiously,” the Prime Minister said.

Asked who would shoulder political responsibility for turning a blind eye to the contractual breach which had already been flagged in the media months ago, Dr Muscat stuck to his guns saying he would wait for the Attorney General’s advice and act accordingly.

He was speaking at the inauguration of the €15 million Fort St Angelo restoration. The venue will be hosting 53 heads of State and government at next month’s Commonwealth summit.

He said the government’s intention was not to leave this historic fort to serve as a showcase but explore how the public could make the best use of it.