Perm sec’s advice on HSBC acquisition ‘never overruled’, Azzopardi insists

A €2.2 million acquisition of HSBC premises in Valletta included the outright sale of almost half the property, former lands minister Jason Azzopardi said.

Contacted by MaltaToday, Azzopardi also insisted that neither he, nor former finance minister Tonio Fenech, ever overruled permanent secretary Alfred Camilleri on the matter. Camilleri had advised against the deal.

“At no point were Fenech and I involved in the negotiations. I would be more than glad if the government were to publish the full file because there is nothing that can put me to shame. As far as I can recall, Camilleri’s reservations were taken onboard and implemented by the end of the negotiations and, by the end of the deal, Camilleri gave his consent as well.

“I am sure that neither I nor Tonio Fenech overruled Camilleri,” Azzopardi said.

Last Sunday MaltaToday revealed that Camilleri – permanent secretary in the finance ministry – had criticised the way negotiations for the acquisition of the HSBC property on a sub-emphyteutical basis had developed which “would likely result in adverse comment by any third party observer and, most likely, would not escape the negative censure of the National Audit Office and the Public Accounts Committee”.

“[...] given that I am not convinced that government would not be paying more than it should for the acquisition of these premises if this proposed deal is approved, I feel duty-bound not to recommend the approval of this acquisition,” Camilleri had told Azzopardi.

Azzopardi also said that it was “untrue” that the property had been acquired in a disastrous state, although admitting that some €250,000 was needed to upgrade mechanical and electrical installations.

“Fenech told Camilleri to quantify the expense and deduct it from the final payment to HSBC. I believe that we had reached a stalemate until HSBC finally caved in.”

Despite a ‘tale quale’ condition in the contract, HSBC also requested a lump sum of €350,000 for the movables.

“I am not aware of this but I have no problem in government publishing the full file,” Azzopardi reiterated. “What I’m certain of is that the government had spent €2.2 million on a property centrally located in Valletta… almost half of the 1,500 square metres acquisition was freehold.”