Taxpayers have paid nearly a quarter of a million euros to compensate five kiosk operators outside City Gate who had to make way for the area’s embellishment project, even though none of them had legal title.

Work on the project, which comprises restoration of the Triton Fountain, pedestrianisation of the old bus terminus and embellishment of the City Gate ditch, started last January and is scheduled to be completed by the end of the year.

The first phase involved the demolition of 15 commercial kiosks that had occupied the same positions around the fountain for decades.

In 2011, when plans to move the bus terminus and embellish the area had already been laid out, talks were held with the kiosk owners, whose lease had expired and was not renewed. However, it appears no final agreement was reached back then.

A request for information had to be filed under Freedom of Information Act

Last January, then Planning Parliamentary Secretary Deborah Schembri announced that an “amicable settlement” with the owners had been reached after months of negotiation.

As part of the settlement, they were given the right of first refusal for 10 new stalls that will be part of the new project.

At the time, Dr Schembri made no reference to any compensation, but a few weeks later, this newspaper learnt that the impasse had only been resolved after some tenants were offered cash to move out.

Attempts were made to verify the information with official sources within the Planning Parliamentary Secretariat, and questions were sent at the start of March. However, no reply was received. A request for information had to be filed under the Freedom of Information Act and it was accepted last month.

Under the settlement, owners of seven of the 15 kiosks demolished were provided with an alternative kiosk somewhere else and the other eight vacated the premises last January, according to the replies received. Vendors of five of the vacated kiosks have been granted a “one time ex gratia payment of €50,000” for moving out. One of those vendors actually had two units but received €80,000 instead of €100,000.

The total compensation paid amounted to €230,000.

The Parliamentary Secretariat justified the move by saying the settlement had been reached in line with a commitment which the PN-led government had made in 2011.

However, former lands minister Jason Azzopardi yesterday insisted no such deal was reached with the Government Property Division during his time.

“This is news to me, as no such deal was reached between the Government Property Division and the vendors when I was in charge of this ministry,” Dr Azzopardi said.

As for the call for the 10 new kiosks, the design of which was unveiled last April, this would be issued when the project was at an advanced stage, the government said.

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