Issue link: https://maltatoday.uberflip.com/i/494410
maltatoday, SUNDAY, 12 APRIL 2015 11 News MATTHEW VELLA THE aftermath of an acrimonious €28 million split between two of the country's major entrepreneurs con- tinues to be heard in court, as hotels group Island Hotels demands that construction magnate Nazzareno Vassallo pays up on costs incurred on a stock exchange listing. Once partners in the Island Hotels Group since 1987, now IHG chief ex- ecutive Winston J. Zahra and Vassal- lo Builders Group's chairman Naz- zareno Vassallo are at loggerheads over a €264,421 payment in costs for the submission of a prospectus for bonds. The case has been ongoing since 2010, when Island Hotels filed an ap- plication stating that a 2009 frame- work agreement had bound Vassallo to pay all costs related to the admis- sion, preparation and submission of a prospectus offering bonds to the public. However only part of these costs had been paid, leaving an outstand- ing balance of €264,421. No reason was given for this. Vassallo Group is claiming that it paid IHG more than it was bound to by the agreement. The amount requested was inflated and exagger- ated, representing costs not related to the admission and preparation of the prospectus. Vassallo Group declared that while it did not contest the agreement, IHG "conveniently left out" the cir- cumstances that led to the clause about costs. It says the costs of the listing's submission were overstated to €927,791, and that while Vas- sallo had already paid €642,970, in reality the costs should have been €494,500. "They are nothing but expenses that were either extra, or exagger- ated and unnecessary to the listing of the prospectus, arbitrarily included without our consent," the Vassallo Group argues. The ongoing court case is just part of the backdrop to the IHG-Vassallo split: in 2009, after Vassallo split up with the Zahras, he went on to open his own catering company, Cater- max, to take on Island Catering head on. Catermax is also 50% owned by ho- tel giants Corinthia Palace Holdings. Corinthia Hotels's holding compa- ny, International Hotel Investments plc, now plans a €50 million takeover of Island Hotels Group – offering a twist to fission and fusion of business alliances. Additional reporting by Matthew Agius Business giants locked in court over €264,000 bonds-listing expense Cittadella multi-storey parking proposed on illegal site MEPA offering 'compromise penalty' for illegalities JAMES DEBONO OWNERS of illegalities served with an enforcement notice and daily fines imposed by the Malta Environ- ment and Planning Authority have been given a new legal option, which enables them to propose a "compro- mise fine". The lowest daily fine foreseen in legislation approved in 2011 is set at €2 and the highest is capped at €50 per day. But a new legal notice states that the authority can consider written requests from persons served with daily fines to pay a "compromise fine" instead. Any such request must specify "the impelling reason" why the penalty established by law must not be paid as well as "the manner in which the fine" is to be changed. The new legal notice also foresees the creation of a new committee composed of three board members, one of whom is the chairman of the authority or a chairperson of one of the two Environment and Planning Commissions. Prior to 2011 the maximum fine envisioned by law amounted to just €2,300. The law regulating daily fines cat- egorises illegalities into four main sections namely, developments that are not in accordance with a devel- opment permit; developments with- out any development permission (whether in ODZ area or not), minor developments and other offences. "There is a distinction being made between infringements carried out within the development zone, and those carried outside the develop- ment zone. Penalties for breaches carried out in a protected area can increase by 100% and can go up to as much as €50,000," it said. According to law MEPA cannot regularise illegal development car- ried out in ODZ if this was carried out after 2008. Persons served with fines against illegalities can now present a request to pay a "compromise penalty" instead of a full fine LOST CAT Still missing since Wednesday 4th March. Semi Persian fawn neutered cat from Verdala Castle grounds – Buskett If seen or found phone 21454138/99489897 A three-level car park is being pro- posed on an ODZ (outside develop- ment zone) site covering a total area of around 3,690 square metres to the west and southwest outskirts of the Gozo Cittadella, in an area known as 'ir-Raba' ta' Wara is-Sur'. Gozitan developer Joseph Portelli is proposing the development. The proposal consists in the con- struction of a three-level car park and a new road. The parking area will cover around 1,050 square metres and will have a capacity of approximately 107 park- ing spaces. The maximum height will not ex- ceed the existing house on Triq il- Kastell (two-storeys high) and this proposal will also involve the demo- lition of the house, retaining its fa- cade. The application is also proposing the construction of a new road with a carriageway of approximately five metres. The aim of this road is to improve traffic flow within the area and allow traffic from Triq Sant' Ursola to gain access to the parking area and the upper part of Triq it-Telgha tal-Belt in Victoria. The site for the proposed devel- opment is mainly characterized by semi-natural or disturbed ground, with terraced slopes of cultivated and abandoned agricultural land. The site lies immediately outside of the Special Area of Conservation (SAC) of International Importance. But parts of the proposed develop- ment are currently being used as a makeshift car park. The site is subject to an enforce- ment notice against non-permitted soil excavations and leveling at the same area. The Environment Protection Di- rectorate has noted that the devel- opment will result in the formali- zation of the site adjacent to the Cittadella and that the new road is of concern from an environmental point of view, due to its impact on the topographic characteristic of the site and site protection. "This proposal would result in land take-up within a site located ODZ and a change in the site topography, also leading to impacts on the land- scape of area," the directorate said. It also noted that the site is subject to an enforcement order. Therefore the existing development on the site cannot be considered when assess- ing the impact of the new develop- ment. The development may also have a geological impact. Aerial photogra- phy of the Cittadella and its immedi- ate environs has indicated that there were two landslides on the eastern flank of the nearby Gallus Hill. "Whilst having no clear evidence of landslides on the west-facing slopes of the Cittadella, the area may be subject to such events from the proposed interventions," a screen- ing report by MEPA states. The MEPA report concludes that the proposal requires an Environ- mental Planning Statement (EPS). Winston J. Zahra and (right) Nazzareno Vassallo