Marco Gaffarena, the protagonist of a 2016 property scandal which led to the sacking of a parliamentary secretary, is developing a block of apartments on a site he had been ordered by a court to return to the government.
The site in question is a shop situated at 73, Manuel Dimech Street, Sliema. It was one of several government properties found to have been illegally bartered in a deal with Mr Gaffarena. In return for the properties he gave the government half a palazzo in Valletta’s Old Mint Street.
The deal was subsequently struck down by the court, which ordered that Mr Gaffarena return all government property that he had acquired under the arrangement.
However, an investigation carried out by The Sunday Times of Malta over the past few weeks has established that the shop which had to be returned to the government now forms part of a mega development being carried out by Mr Gaffarena to turn it and an old townhouse into a block of luxury apartments.
According to plans approved by the Planning Authority and seen by the newspaper, there will be at least two bedrooms in the place of where the shop now stands. Works were underway on the site when the newspaper paid a visit some days ago.
In January 2016, an inquiry by the National Audit Office had slammed the government over its negotiations with Mr Gaffarena, describing it as a textbook case of lack of good governance and transparency.
Declaring the deal to be irregular, the NAO had recommended that the government take steps to take back possession of the public property traded under the deal.
It’s a court decision which all media reported
In order to counter the political flack over the scandal, Prime Minister Joseph Muscat had sacked then parliamentary secretary Michael Falzon (today a Cabinet minister) and opened a court case against Mr Gaffarena and the Lands Department to take the government property back.
In March 2018, the court decided in favour of the Prime Minister, ordering the nullification of the deal with Mr Gaffarena and the return of all the property to the government including the Sliema shop.
In a statement, the Office of the Prime Minister had described the court decision as a win for the Prime Minster in “safeguarding public property”.
Asked a few weeks ago whether the government has indeed taken back all the public property from Mr Gaffarena, a spokesman for the Prime Minster said this was the case.
“The Prime Minster took political and legal action over the said case to safeguard people’s interests. He won the case in court on behalf of the people, which ruled that the lands obtained as part of the expropriation deal should be returned to the government”.
Pressed on whether the OPM was sure that the properties in question have indeed been returned to the government, the spokesman said that “it’s a court decision which all media reported”.
The Lands Authority has told The Sunday Times of Malta that although Mr Gaffarena filed an appeal against the court decision, “there is a warrant of prohibitory injunction in place safeguarding any transfers of property involved in this case”.
At first, the authority conveyed the impression that the development does not involve the government-owned shop but only the adjacent private property (Nr 74) acquired by Mr Gaffarena in 2013.
However, when The Sunday Times of Malta pointed out that the shop was part and parcel of the plans approved by the Planning Authority, and that works were actually being carried out there, a spokesman said the authority was not aware of this.
“Any works on 73, Manuel Dimech Street, do not have the blessing of the Lands Authority,” the spokesman said.
“Although the application was made on property 74 and notwithstanding that the LA was never a consultee (nor informed or had any reports) of works on Number 73 (the shop), the LA will take all available legal steps to continue safeguarding its property.”
So far, The Sunday Times of Malta is not aware of any legal steps that may have been taken by the authority or the government to stop the private development of public property, as works by Mr Gaffarena on his apartment block continue unabated.
Gaffarena scandal timeline
May 2013: Labour returns to power. Marco Gaffarena signs deal to acquire an old townhouse at 74, Manuel Dimech Street, Sliema.
April 2015: Following negotiations with the government, the Lands Department grants Mr Gafferena title over 73, Manuel Dimech Street, an adjacent shop. This makes his development possible.
May 2015: Mr Gaffarena applies for a development permit from the Planning Authority to turn the two properties into a block of apartments.
January 2016: NAO investigation finds irregularities by the government and Mr Gaffarena over the Old Mint Street property transfer and states that all government property handed over to Mr Gaffarena, including the Manuel Dimech shop (Nr 73) have to be returned to the public. Prime Minister sacks parliamentary secretary Michael Falzon.
January 2016: Dr Muscat files a court case against Mr Gaffarena and the Lands Department to revoke all the property deals done under his watch.
April 2017: The Planning Authority grants permission to Mr Gaffarena to develop his property in Sliema including the shop which was supposed to be returned to the government. The Lands Authority does not intervene.
March 27, 2018: The court decides against Mr Gaffarena and the Lands Authority, revokes all property deals with Mr Gaffarena and orders the return of all public assets to the government including the Sliema shop. The government issues a statement welcoming the court decision and praising the Prime Minister’s action to “safeguard public property”.
April 10, 2018: Mr Gaffarena files an appeal against the court decision.
April 16, 2018: He gives notice to Planning Authority that development work is to start on his Manuel Dimech property including the shop, which was supposed to have been returned to the government.
Last week: Works carry on: the shop is being turned into a bedroom for one of Mr Gaffarena’s new apartments.