Issue link: https://maltatoday.uberflip.com/i/1516210
6 maltatoday | WEDNESDAY • 21 FEBRUARY 2024 NEWS MATTHEW VELLA mvella@mediatoday.com.mt Over 4,000 unused government properties, NAO finds in private lease survey Elderly man stabbed mid-argument in Paola Over €22 million spent in leasing state-of-the-art offices because of lack of fitting office space in government portfolio THE Maltese government owns over 4,000 unutilised properties, yet many of its en- tities are still leasing some 260 properties from the private sector. The findings form part of a preliminary review by the Na- tional Audit Office to evaluate the degree to which the gov- ernment's leasing of private property reflects value for money. In total, this represents 213,112 sq.m of private- ly-leased real estate, at a value of €22 million a year, but in to- tal valued at over €204 million for the total duration of the leases. Additionally, a €41 million outlay has been spent by gov- ernment by way of capital in- vestment in these leased prop- erties. Around two-thirds of these properties are used for office space, but in 43% of cases, no formal needs assessment was carried prior to leasing a pri- vate property. The process regulating the procurement of government leasing of private property was only recently ad- dressed in 2020 through new procurement rules to enhance the efficiency and transparen- cy of leasing activities. In general, government en- tities must first enquire about the availability of govern- ment-owned properties with both the Lands Authority and the Joint Office (JO) before starting a procurement pro- cess. But several operational issues still prevent this apparently seamless process, from outdat- ed digital information in the Land and Estate Management Information System (LEMIS), to a lack of standard operating procedures in managing these enquiries. On the other hand, govern- ment entities are also looking for adequate, accessible and state of the art premises, which are not readily available in the government's property portfo- lio, which apart from often be- ing in a state of disrepair, tend to be in undesirable buildings and areas. The survey results show that, in 2022, the average leasing cost per square metre (sq.m) was €118. However, the addi- tional capital costs incurred by Governmental Entities to refurbish some of the leased properties, raises value for money concerns. From 2018 onwards there was also a steady increase in the number of leased private properties: 76% of the 260 agreements were entered into between 2018 and 2022. Governmental entities told the NAO they face insufficient office space and need good lo- cations for their operational logistics and client interface. "On the other hand, the pre- vailing condition of many un- utilised Government-owned property as well as the up- grading costs involved and the time required to refurbish un- utilised properties, discourage and hinder governmental enti- ties from transferring and op- erating from these unutilised properties, which are listed in property inventories main- tained by the LA," the NAO said. This situation implies that government needs to strength- en its estate management arm to cater for demands driven by specific public bodies. The NAO called for a cen- trally maintained database of all leases from the private sector involving governmen- tal entities, new agreements, lease duration and annual leas- ing rate. This would facilitate comprehensive overviews of such activities, with real-time, centralised data that can be an- alysed. In view of the increasing number of private sector leas- es, the NAO said government should create a central depart- ment or entity which manag- es these leases. "Centralising lease management ensures consistency and standardisa- tion in lease agreements across various entities." It also called for studies and a cost-benefit analysis to deter- mine the best possible cost-ef- fective options for having ad- ditional space for government use, when required. The FIAU recently moved into its new premises at Trident Park, formerly the Farsons brewery headquarters A man was hospitalised in the early after- noon after being stabbed with a sharp in- strument, police confirmed on Tuesday. Police told MaltaToday that two men were caught in an argument in Triq il-Lampuka, Paola, when one of them pulled out a sharp object and stabbed the other. The victim, a 69-year-old from Żejtun, was assisted on site by a medical team and then transferred to Mater Dei Hospital. Police were informed that the injuries are not life-threatening but are yet to be confirmed whether they are grievous or slight. Police have not yet released details on the other man, who is currently in custo- dy and being interrogated. Governmental entities told the NAO they face insufficient office space and need good locations for their operational logistics and client interface Police told MaltaToday that two men were caught in an argument in Triq il-Lampuka, Paola