Back
Register for SMS Alerts
or enter your details manually below...
First Name:
Last Name:
Email:
Password:
Hometown:
Birthday:
Sorry, we couldn't find that email.
Existing users
Email
Password
Sorry, we couldn't find those details.
Enter Email
Sorry, we couldn't find that email.

Spinola property partly owned by government, legal action to be taken if land value not paid

Genuine oversight caused misconception that property was wholly Church-owned, Lands Authority chief committed to legal action if Vince Farrugia does not pay government land value

massimo_costa
Massimo Costa
21 November 2017, 6:37pm
Part of the property at 83, Spinola Road, which was thought to have been wholly Church-owned, had actually been owned by the government
Part of the property at 83, Spinola Road, which was thought to have been wholly Church-owned, had actually been owned by the government
The property at 83, Spinola Road, St Julian’s, which had been thought to be wholly owned by the Church, was partly owned by the government.

This emerged in today’s Public Account’s Committee, where Carlo Mifsud, Lands Authority chief executive, testifying for the second time, clarified that the government would not only be earning €35 for the property sale, as had been previously thought.

Instead, the government will be earning a much higher figure, going into the thousands, for the portion of the property which it owned.

It was previously reported that, since the government had decided to transfer the property via outright sale instead of perpetual emphyteusis, it would only be earning €35, due to an agreement on properties which were formerly Church-owned.

The property had been sold for €525,000. Mifsud explained that the government would not be earning €35 for the part of the property which it owned, but would instead be earning the portion of the total price which the property was sold at corresponding to part of the property which was government-owned.

He did not however have the exact figures at hand immediately available, he maintained.

The Church has been informed about this, Mifsud said, and once it received the full amount which had been paid for the property, it would be transferring to the government the amount which would cover the portion with it owned.

The mistake was due to a genuine oversight, caused by a delineation error on the blueprints of the property. It was a report by an auditor which had brought to light the anomaly, which was discovered in July 2017, Mifsud added.

The PAC had previously heard that Vince Farrugia, one of the businessmen behind the illegally developed property, had yet to pay the government the amount which the land on which the property was situated was worth, which was €290,000. 

In regards to this, Mifsud said at today’s PAC that if Farrugia did not pay the required amount by the end of this year, legal action would be taken against him.

Testifying at the previous PAC, Farrugia had said that he aimed to make between €9 and €10 million from the sale of the property which he had bought off the government.

massimo_costa
Massimo Costa joined MaltaToday in 2017 as a journalist. He is a graduate in European Stud...