Falzon claims Gaffarena outrage ‘just like 1970s strikes against Mintoff’

Parliamentary secretary for lands Michael Falzon insisted that he had done nothing wrong with regards to the highly controversial expropriation deal that saw property developer Marco Gaffarena receive  €822,500 in cash, together with several parcels of government lands, valued in total at €822,500, for the expropriation of his 50% ownership in a Valletta building that houses the government offices of the Building Industry Consultative Committee.

Participating in the latest edition of Saviour Balzan’s current affairs discussion forum Reporter together with shadow minister for justice and former minister of lands, Jason Azzopardi, Falzon emphasised that there had been no political interference on his part and repeated that if it emerged that any wrongdoing came to light, he “would take the necessary steps,” but stopped short of promising to step down.

“Did I impose myself on the architects, or negotiate with Gaffarena?” asked the embattled parliamentary secretary. “This is the issue. There was no political interference.” 

Azzopardi demanded that political responsibility be borne by the minister for lands, pointing out that for the fist time since Malta’s independence, that position was held by Prime Minister Joseph Muscat. “The biggest lands department scandals have emerged under Muscat’s tenure.”

Asked if he would be stepping down, even temporarily, Falzon replied: “I will be clear. There are two investigations underway. I have no problem and am declaring that I will follow the recommendations of those investigations.”

Falzon drew a historical parallel to the PN’s reaction. “This is a repeat of the Seventies. When [former Labour Prime Minister Dom] Mintoff started creating wealth, the PN did its best to disrupt the government’s efforts with strikes. It is doing the same now.”

Balzan asked the parliamentary secretary whether the fact that Gaffarena was allowed to pick and choose his compensation bothered him.

“It is not my remit as a politician to go around valuing lands,” replied Falzon, before attempting to turn the question on to the PN, saying that it had “brought the country to the disastrous state it was in now.”

Extrapolating from that point, Balzan quizzed the PN representative on the expropriation of the Fekruna restaurant in Xemxija. Despite owing over €80 million in compensation to landowners whose lands were expropriated by the state, the restaurateur was given a €4.3 million land swap in a compensation deal brokered just four days before the 2013 general elections.

Azzopardi did not see the comparison as valid, saying that in the Gaffarena case, half a building was expropriated for the benefit of one man, whereas in the Fekruna case, the PN had been elected in 2008 on a promise to expropriate private properties in scenic areas, to allow them to be enjoyed by the community .

“At the end of 2008 the five sites [for expropriation] were identified as Ulysses lodge in Gozo, Apartments on the limits of Għadira, the Tigullio at St. Julian’s, tal-Fekruna on the limits of Xemxija, and Riviera Martinique, near Għajn Tuffieħa.”

“In 1996 the ombudsman had ordered the government to allow public access to the foreshore, so an expropriation took place In the public interest.”
Azzopardi pointed out that the Fekruna land had been valued by three different and independent architects who had agreed on a value of €5million. One architect was chosen from the private sector, said Azzopardi, “who by the way I never went abroad with, nor did I send a representative with.” 

“The expropriation process didn’t take three days, it took almost three and a half years,” added the former minister for lands

He asked what the PL was finding difficult about the Fekruna expropriation. “Is it because it was so close to the election?” he challenged Falzon to, if that is the case, to make a pact that as soon as the next general election is announced there would be no expropriations.

Balzan pointed out that there are hundreds of ordinary citizens who have had their lands expropriated and are surprised by the fast-tracking of Gaffarena’s expropriation and the fact that he was given the option of picking and choosing how and what kind of compensation he would be granted.

“When I went abroad with Mark Gaffarena, I had not even thought of standing for election. Years before that, I had also gone abroad with one of Fenech Adami’s nephews. So does that mean that I would also accompany him during his meetings with Żeppi l-Ħafi?”

On the fast tracking, he said Gaffarena had made his first communication in July. “The request was received in July and the contract took place in February. Is this haste?”

Falzon announced plans to address the problem of the many other property owners whose land had been expropriated and who have been waiting decades for compensation.
“We are going to put aside a third of the budget to pay everyone who is owed up to €50,000”
“In the hope that this scandal is forgotten” quipped Azzopardi, without missing a beat.

The opposition MP reminded Falzon that on the 2nd March, “105 days ago,” he had challenged him and Prime Minister Muscat to publish the government files on the expropriation deals for Café Premier and Fekruna, but this information is yet to be made public,

Balzan asked Falzon to clarify for the benefit of those watching the programme, whether anyone who has had his lands expropriated could simply amble up the lands department and ask to be given a particular piece of land.

Falzon replied that he, like Azzopardi, had not interfered. “But who are you trying to fool, saying that you go up to swap lands with government...this is a unique, historical palace,” but Azzopardi interrupted him, pointing out that he had signed the site off as land which could be built upon, not as a historical building. 

“In the President’s declaration [of expropriation] it is stated that the land is for development. This is a building site.”

Falzon “What do you want me to do? Interfere in valuations?” let me show how we interfere” he then produced an email from 2011, in which former Prime Minister Lawrence Gonzi was in CC, regarding a meeting with the owners of the land at Fekruna. 

Describing that argument as pathetic, Azzopardi announced that the  opposition had tabled a formal request to the auditor general with 18 questions, amongst them why the government chose to expropriate by absolute purchase, when other, cheaper methods were available, for example holding the land on “public tenure.”

“When the scandal broke you denied involvement. Last week you admitted that you signed the note, that was logical. What is not logical is that you didn’t ask who made the note. Yesterday, thanks to the MaltaToday, we learned that you met this person and he offered to sell a quarter. This is unprecedented.”

“The truth is that there was no political intervention and that I have done nothing wrong,” said Falzon, saying the scandal was  “an exercise in backstabbing aimed not only at Michael Falzon but also at government, ”  and which made for a good distraction from the Mater Dei Concrete scandal.

“Two reports of the inquiries have been commissioned,” repeated Falzon. “I have no problem with fixing what needs fixing.