WATCH | Abela says government could consider out-of-court settlement to take back Manoel Island

Prime Minister Robert Abela said government does not rule out an out-of-court settlement with MIDI plc to bring to an end the Manoel Island saga.

“One has to see if an out-of-court settlement can be reached given the situation we find ourselves in, as long as the sum requested is too much,” Abela told journalists outside parliament a day after MIDI plc’s surprise statement on Sunday.

In what many have interpreted as a step closer to a win for NGOs behind a petition calling for Manoel Island to be turned into a national park, the MIDI plc consortium said on Sunday night it is committed to finding a solution for the land to revert to government.

Fielding questions from journalists, Abela said MIDI must understand it cannot make profits off Manoel Island. “It reaped the profits it had to reap from the Tigné development, and while some sort of payment to shareholders can be justified, and maybe compensation for restoration works, but they cannot expect compensation for loss in profits.”

The PM said the announcement on Sunday was the consortium’s personal decision, and government had no say in it.

“I believe the dream of the people can be fulfilled, despite the contractual obligations. It could also be there are contractual breaches on timelines,” he warned.

Abela said he believes, clause 8 of the contract, specifically 8.1.4, which states: the “entire development shall be substantially completed by the thirty-first (31st) day of March of the year two thousand and twenty three (2023)”, had been breached.

“A three-year extension against a penalty was given in 2023, and this means a substantial part of the project has to be completed by 2024, which is physically impossible,” he said.

The PM insisted the interests of 5,000 bondholders and around 800 shareholders “most of them pensioners” must be protected, but “more importantly” the interests of the Maltese.

“The consortium, and yesterday’s company announcement I think indicates that, has to understand the people deserve a space where they can relax, and I will be leading that charge,” he told journalists.

The dramatic shift in the company’s position is attributed to Moviment Graffitti and Flimkien Għal Ambjent Aħjar after they successfully steered a petition to have Manoel Island returned to the public and turned into a national park.

The petition garnered 29,000 signatures and found the support of former prime ministers Alfred Sant and Lawrence Gonzi; former Labour minister Evarist Bartolo, the current Labour Party President Alex Sciberras and backbencher Edward Zammit Lewis; and several Nationalist MPs.

After initially wavering on the activists’ call, Opposition Leader Bernard Grech said every effort must be done to explore ways how the island could be returned to public ownership. He called for a review of the contract by the NAO before a parliamentary debate can take place.

Prime Minister Robert Abela initially refuted the petitioners’ call, insisting there was a contract in place and his government was not willing to pay millions of euros to MIDI investors. Nonetheless, days later Abela did a U-turn and hit out at MIDI investors, instructing Alex Sciberras and Edward Zammit Lewis to analyse the contract for any possible breaches.

On Sunday, Abela reiterated his government’s commitment to do all it can to see Manoel Island return back to public ownership, while protecting the investment of MIDI’s small shareholders and bondholders.

READ ALSO | Robert Louis Fenech: ‘We have a unique chance to get Manoel Island back