Updated | Michael Falzon rubber-stamped Gaffarena expropriation

Parliamentary secretary for planning Michael Falzon has declared that it was he who signed the valuation of the 50% share in the Old Mint Street, Valletta offices housing the BICC, owned by Marco Gaffarena.

Gaffarena was paid €1.65 million in lump cash sum and selected lands by the Government Property Division, as compensation for the expropriation of his 50% share in the offices housing the BICC which he purchased for little over €150,000.

The excessive valuation of the Old Mint Street offices, and the lands he was regaled – some of them adjacent to properties he owns, or to which he intends to develop into new constructions – is now the subject of an investigation by the National Audit Office, the Internal Audit and Investigations Department, which falls under the Office of the Prime Minister.

Falzon said that it was usual practice for the minister responsible for the GPD to sign such valuations by the GPD. But he failed to explain how the lands in question were selected for the compensation, especially since some of the lands abut on property already owned by Gaffarena.

He also said that one of the architects involved in the valuation of the property was a head of department of the University of Malta.

MaltaToday can confirm that it has been trying to solicit a comment from architect Dr Joseph H. Spiteri, head of department at the faculty of architecture at the University of Malta, for the past week.

“These architects worked without any interference according to procedures established throughout the years… this architect, a veteran when it comes to valuations, was also used by the GPD under the former administration.”

Falzon also said that upon signing, he made it clear to the GPD to proceed with the expropriation “only if everything is in conformity with the law.”

Falzon had previously declared that the expropriation was regular and above board.

In a reaction, the Nationalist Party said Falzon’s statement was clear that the junior minister was “under pressure from the Prime Minister to answer to this scandal”.

Joseph Muscat as prime minister is responsible for lands, although Falzon is parliamentary secretary.

“Falzon’s attempt to blame the GPD architect’s is pathetic: deep down he knows that it is not the architect who decided on unnecessarily acquiring the quarter-share of the BICC offices, the acquisition of the other quarter, and which lands were offered in compensation,” the PN said.

“If it has nothing to hide, the government must tonight publish all files connected to this scandal. Muscat cannot stay silent on this scandal. He has to answer for his actions.”

MaltaToday has also filed a Freedom of Information request for all the files pertaining to the Gaffarena expropriation.