After Michael Falzon’s rant, Auditor General stands by Gaffarena investigation

The Auditor General, Charles Deguara, has expressed his displeasure at the tone of a parliamentary speech in which the former parliamentary secretary for lands, Michael Falzon, alleged he had been “attacked” by the National Audit Office when it published its audit of the expropriation of the Old Mint Street palazzo in Valletta, that led to Falzon’s resignation.

READ The Gaffarena expropriation

“The office expresses, without any reservations, its disappointment at the tone [Falzon] used with respect to the institution of the NAO and its employees, such that it can damage an institution that has always enjoyed the trust of the House and the public in general,” Deguara said of the NAO, a constitutionally-appointed office of parliament.

“We insist that impartiality for this office is a sacred principle,” Deguara said, of the audit that suggested there had been some form of collusion between Falzon’s office and Marco Gaffarena, the property owner who was paid over €1.6 million in cash and government lands for what could have been a pre-planned expropriation of his 50% ownership of the Old Mint Street palazzo.

The Prime Minister has instituted a court case to recoup the lands granted to Gaffarena.

Specifically, Deguara said:

• That it was untrue that Antoine Calleja was involved in the Old Mint Street audit;
• That the NAO was still investigating various other irregular Lands Department expropriations;
• That it was untrue that NAO employees Keith Mercieca – whom Falzon said was an acquaintance of Nationalist MP Jason Azzopardi – and Josephine Vella, th wife of a PN candidate had “boasted about opening a bottle of champagne once an audit on privatisation related to Chris Cardona” is published;
• That it was untrue that employee Elaine Ghigo ordered business cards for an NAO position she had not yet been appointed to.

Deguara said he saw no reason why the NAO should published an addendum to the report as requested by Falzon, containing a statement he wanted added on the audit. Falzon has continued to insist that the Auditor General’s report was a “political witch hunt”.

Prime Minister Joseph Muscat has defended former parliamentary secretary Michael Falzon’s rant against the Auditor General, insisting that he had already “shown his respect” by resigning in light of a report by the National Audit Office.

“Michael Falzon expressed his opinion. He respected what the Auditor General said by resigning, contrary to what was done by Nationalist ministers in the past, when they hit out at the Auditor General and even passed a motion through the Public Accounts Committee calling for the Auditor General to be investigated.”