Keith Schembri denies wrong doing on Fortina deal, claims unfair reporting

Updated at 8:30pm with Fortina statement 

Former Office of the Prime Minister Chief of Staff Keith Schembri has denied any wrongdoing from his end when the government pushed through a parliamentary resolution to remove conditions on public land acquired by the Fortina Group.

“At no stage did I suppress, authorise, or conceal any valuation. The commissioning of valuations, the negotiation of terms, and the final decision-making were the exclusive responsibility of the Lands Authority and, ultimately, Parliament — not the Office of the Prime Minister,” he said in a Facebook post, denying allegations made in reporting, and insinuations contained in the National Audit Office (NAO) report.

Keith Schembri's post on Facebook

The information comes from the National Audit Office’s latest investigation, which report was tabled in parliament on Monday. The probe, requested in 2021 by Arnold Cassola, delved into the 2019 contract between the government and the Fortina Group.

The contract was to amend past deeds by which the Fortina Group had acquired parcels of public land to expand its Fortina Hotel in Sliema. The historic deeds had included conditions that limited development to a hotel and imposed height limitations.

The 2019 deed was to waive those conditions, enabling the company to go ahead with a planned mixed-use, high rise €55 million development.

Schembri said on Monday evening, the NAO report itself highlights contradictions in documentation, missing records, and uncertainties as to who had access to particular reports.

“Importantly, the difference between the €8.1 million and €21 million figures is not a question of suppression but of method: the government’s figure was derived from a 2017 valuation of part of the site, while the NAO relied on 2019 values and included the entire site,” Schembri claimed.

He concluded by saying reporting is unfair, and singles him out on the basis of selective and out-of-context observations, rather than on the facts as set out in the NAO’s own report.

Fortina denies ‘insinuations’

In a statement issued on Monday night, Fortina said it acknowledges the NAO report.

“This report spans more than 200 pages and took the National Audit Office over four years to compile and publish. Given the substantial nature and scope of this document, Fortina will take the necessary time to thoroughly review and evaluate its contents. Fortina denies any insinuations made in its regard,” a company statement read.

They said, however, it would be premature to make substantive public statements at this stage, before we have had the opportunity to properly review and analyse the report's findings.

“Fortina remains committed to transparency and will provide appropriate responses following our comprehensive review of the document,” the statement concluded.

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