WATCH | Cassola says government bent rules to favour Fortina

Momentum chairperson Arnold Cassola has insisted the Fortina deal scandal went beyond administrative shortcomings, accusing the government of bending the rules to favour the company.

Interviewed on XTRA by host Saviour Balzan, Cassola said political and criminal responsibility must be shouldered over the case, also questioning former Prime Minister Joseph Muscat and his chief of staff Keith Schembri’s direct involvement.

He said the case was not just about valuation, but also about politicians abusing their positions to benefit specific individuals.

Government MP Alex Muscat on the other hand defended the Lands Authority, insisting the institution cooperated fully with the National Audit Office.

He acknowledged that discrepancies existed in valuations, with one pegging Fortina’s obligation at €8.1 million while another estimated it at €12 million. Muscat underlined, however, that these decisions were made based on the information available to the board at the time. For him, the issue lay in methodology rather than malice.

He argued it was unfair to suggest everything the Lands Authority did was wrong, framing the controversy within Malta’s long history of governments allocating land for economic development. He also conceded that the realities of 2025 required a rethink of how such powers should be exercised.

Nationalist MP Ryan Callus, who represented the Opposition on the Lands Authority board, recalled how it had voted against the deal after realizing the valuation did not reflect the true market value.

He noted that “someone decided to forget €4 million,” emphasising a third valuation by Grant Thorton, which was not initially disclosed, only came to light after the NAO stepped in. For Callus, this concealment undermined public trust, and accused government ministers of knowing about the higher valuation but failing to act responsibly.

During the debate, Cassola insisted how the practice of public land being handed over to private developers should stop. Cassola firmly rejected the practice, arguing that in Malta’s context, where land is scarce, such transfers should stop altogether.

Muscat, by contrast, defended the principle, pointing to the role land grants had historically played in building Malta’s tourism sector, although he acknowledged that the goals and safeguards must evolve with the country’s changing circumstances.

With the police saying they will be speaking with the NAO over a possible investigation into the case, Cassola expressed skepticism about Commissioner Angelo Gafà’s willingness to act against political figures.

He also criticised both major parties for failing to pursue court action despite the possibility of annulment under Maltese law in cases of fraud. The opposition, meanwhile, has maintained that the government must honor its promise to recover the millions allegedly lost. “If not,” Callus warned, “we will safeguard the people’s interest ourselves.”

A National Audit Office investigation tabled in parliament revealed how the Fortina Group paid less than half the amount owed to have conditions imposed on several parcels of public land in its possession lifted.

Fortina paid €8.1 million but a valuation report kept hidden by former Lands Authority chair Lino Farrugia Sacco, now deceased, put the valuation at more than double the amount paid. 

The deal was signed in 2019 after parliament approved a proposal put forward by Borg, who was then lands minister. The Opposition had voted against.