An in-depth look at just two of the areas entrepreneur Mark Gaffarena received in return for the controversial expropriation of half a Valletta property sheds light on the real value of the deal.

The case so far

Two simultaneous investigations are under way into the scandal related to the controversial expropriation from Mark Gaffarena, first revealed by Times of Malta.

Pressure has been mounting over the case since the government bought half the ownership of a property in Old Mint Street for €1.65 million from Mr Gaffarena through two separate contracts.

The expropriation order for the second part of the property was issued a few weeks after Mr Gaffarena had bought his half, allowing him to make a profit of €685,000.

The Nationalist Party asked the Auditor General last Friday to investigate the deal. The letter sent to him, listing 18 points deemed worthy of investigation, was signed by five Opposition MPs. This means the inquiry must automatically begin, according to the law.

On Monday, the government followed suit and, in a statement, announced that Planning Parliamentary Secretary Mi-chael Falzon had “requested” an investigation by the Internal Audit and Investigations Department (IAID).

The internal inquiry was dubbed a “farce” by the Opposition, because the IAID reports to Cabinet.

The Auditor General will conduct a thorough investigation and then report to Parliament, with his findings being made known to the public. This has led to a war of words between the two political parties. The Opposition said the government made a U-turn on the case since, only last week, it said no investigation was necessary but then opted for two.

The government insisted that the increased scrutiny would ensure transparency.

In a statement yesterday following the exchanges in Parliament during question period on Monday, the government committed to publishing the internal inquiry.

Yet this contrasts with declarations made by Tourism Minister Edward Zammit Lewis who told this newspaper on Monday that he was unable to publish the internal investigation by the IAID into the case of the former head of the tourism institute, Henry Mifsud.

According to the law, Dr Zammit Lewis said, the findings “shall be treated as confidential and shall be solely used by the directorate for the purpose of carrying out an internal audit”.

Independent assessments by architects commissioned by Times of Malta showed that the property and land that Mr Gaffarena was given in return for the Valletta property were worth at least double the value estimated by govern-ment architects.

Mr Gaffarena was given land in Siġġiewi, Qormi, Żebbuġ, White Rocks and Sliema.

A more in-depth look at just two of the areas sheds light on the commercial value of what Mr Gaffarena received.

Sliema

The property Mark Gaffarena was given in Manuel Dimech Street fits into his plans to build flats and garages on the site.

In May 2013, Mr Gaffarena bought the two-storey Sliema townhouse. Then, last April, he was given the shop beneath the house as part payment for the Valletta expropriation.

The government property division valued the shop at €65,000, because it was not a freehold property. Yet the rights to property ownership expire next year, at which point it will be worth more than double the price to Mr Gaffarena, according to the assessment of independent architects.

Good governance, they say, requires the government property division to retain the property until it can be issued for sale at a higher value.

In 2007, Mr Gaffarena had already filed a development application to demolish the existing building to construct apartments with underlying garages. Mepa refused the permit in 2012.

A month after Mr Gaffarena acquired the Sliema property, he filed a development application with Mepa to demolish the townhouse and shop to build 10 apartments spread over four levels, a penthouse and five garages.

White Rocks

The parcels of land that Mr Gaffarena was given at White Rocks are at the edge of the development zone in the area and feature unobstructed sea views.

He was first given a parcel of this land, measuring 3,735 square metres, in the first contract signed last January. There is a building on this land, with a footprint of 240 square metres.

New planning authority policies introduced under the Labour government allow existing buildings in ODZ to be converted to dwellings, exponentially increasing the value of the coastal land. Yet it was only valued as agricultural land by government architects.

Mr Gaffarena was then given another parcel of land adjacent to the first in the second contract, signed in April. This increased the size of the original land he was given by 1,663 square metres. It was valued by government architects as a separate parcel of land that cannot be built on, rather than land that adds to the value of the adjacent one given to Mr Gaffarena.

In total, Mr Gaffarena was given almost 5,400 square metres of land which can accommodate a villa with vast gardens surrounding it and featuring unobstructed sea views.

While government architects estimated the combined value of these lands at €330,000, the architects commissioned by Times of Malta gave “a very conservative” estimate of €650,000.

Developers told this newspaper that the land would be easily worth €2 million when developed.