[WATCH] PL want ‘democratic process’ completed before speaking on Falzon’s future

Labour wants democratic process completed before discussing Falzon's future • Video by Ray Attard

Labour has refused to comment on whether planning parliamentary question Michael Falzon should resign, despite an internal inquiry uncovering “illegal land valuations” within  the expropriation of half a Valletta building from property entrepreneur Mark Gaffarena.

An inquiry by the OPM’s internal audit and investigations department (IAID) has found that lands granted to Gaffarena, as payment for half the expropriated property, were in excess of a legal 30% ceiling which such land valuations cannot exceed.

However, asked by MaltaToday after a PL press conference held to criticise Opposition leader Simon Busuttil for failing to fire MP Joe Cassar from the PN, economy minister Chris Cardona refused to provide a concrete answer as to whether this evidence should be grounds for Falzon’s resignation.

Instead, he repeatedly insisted that such a decision only be taken after the National Audit Office has assessed the IAID’s findings. “That is how things are done in a democracy,” Cardona explained. “One doesn’t just take unilateral decisions over somebody’s future without first going through the entire democratic process.

“Once the NAO investigation is complete, I have no doubt that the Prime Minister will take the necessary decisions.”

He questioned who should “ultimately shoulder personal responsibility” for the IAID’s findings, and when asked whether Falzon should resign refused to “play judge and jury”.

“Should we just capriciously pin the blame on anyone we want to?” he asked.

“We are a mature government that acts according to strong democratic principles – that responsibility must be shouldered once guilt is established.”

In a brief statement issued after Labour's press conference, the Nationalist Party said that Cardona "must have no shame" to preach about clean politics. 

Gaffarena made headlines this year when The Times revealed that the property owner was granted €1.65 million in a land and cash compensation, for just a 50% stake in the Old Mint Street building that houses government offices for the Building Industry Consultative Council.

The expropriation was controversial because Gaffarena originally took ownership of 25% of the building in 2007 for just €23,294 – and was compensated €822,500 in cash and lands in January 2015.

But in February 2015 he had also managed to purchase another 25% portion of the building for €139,762, and was paid another €822,500 in lands and cash in April 2015.

He also personally selected the lands for compensation, all of which were situated close to land he owned or leased, or which he intended to develop, adding even more value to the property he received in compensation.

MaltaToday confirmed last week that in its investigation, the IAID discovered a trend of excessive valuations of land which may have been ongoing since 2008.

In the Gaffarena case, the land transferred was in excess of a 30% ceiling set in the Disposal of Government Land Act: that in land exchanges, the value of the government land to be given cannot exceed 30% of the value of the expropriated land.

Sources privy to the investigation told MaltaToday that the Attorney General was consulted on the findings, and that the AG surmised that the lack of compliance with the 30% ceiling was “the only basis” for which the land deal could be considered to be null and void.