Alleged Palazzo Verdelin expropriation under investigation

The government has confirmed that it has launched an investigation into the "alleged expropriation" of Palazzo Verdelin in Valletta.

A government spokesperson said that a request was made earlier this week to extend an IAID investigation into the expropriation of a building in Old Mint Steet.

"At no point was interest shown by the parliamentary secretary or the ministry to expropriate Palazzo Verdelin," the spokesman said, adding that the investigation requested following reports in the media.

The spokesman added that the investigation was requested by parliamentary secretary Michael Falzon.

News of the investigation emerged during a press conference with shadow justice minister Jason Azzopardi and PN MP Ryan Callus when Azzopardi was asked by the Labour Party's media whether he was aware of the ongoing investigation.

Allegedly, owners of the Palazzo which houses the police station were approached by Marco Gaffarena showing interest in buying their property, adding that the government was interested in buying the property "to make sure it continued to serve as the Valletta police station". 

Home Affairs Minister Carmelo Abela has categorically denied in a parliamentary question that the government intended to buy the Valletta property. Last month, government ordered two separate inquiries over the controversial expropriation deal in which Gaffarena was paid €1.65 million for half the ownership of a property in Old Mint Street.

Nonetheless, the government extended its original investigation into the Old Mint Street expropriation deal to cover Palazzo Verdelin.

"No, I was not privy to that information and the government should have at least issued a statement," Azzopardi said.

In reply to MaltaToday, Azzopardi said he did not know whether an actual valuation of Verdelin had been ordered by the Lands Department because he was not privy to the files.

"Our press conference is based on the fact that government remained silent four days after a report was published in the media," Azzopardi said, adding it was impossible that someone would offer to buy a property knowing that he would not make any profit off it.

Gaffarena already owns a third of the palazzo in a deal struck 15 years ago.

The Opposition said Prime Minister Joseph Muscat has failed to reply to a series of questions raised by Simon Busuttil on whether kickbacks were involved which allowed Gaffarena to be aware of government's plans.