Issue link: https://maltatoday.uberflip.com/i/580873
maltatoday, SUNDAY, 4 OCTOBER 2015 4 News CONTINUED FROM PAGE 1 In Feb- ruary 2015, Falzon admitted to having held a bank account at Geneva's HSBC Banque Privée of some €465,000 after being questioned on the matter by the Malta Independent. "I am now certain that I was not on the so-called Swissleaks list," Falzon said of earlier re- ports when his admission was linked to names revealed by the International Consortium of In- vestigative Journalists of HSBC clients holding secret bank ac- counts. "I had no problem in confirm- ing that this information was correct at the time," Falzon said. "I panicked when ques- tioned by the reporter. I should have been more assertive when questioned." Falzon said the original ac- count was opened eight years before he had been appointed minister in 1987. "This was a time when the political climate in the country was so grim that I did not rule out leaving the country." When news of the Swiss ac- count broke, Falzon issued a public apology for having not declared his foreign account in his register of assets during his time as an MP. He also decided to suspend his press commen- tary, and resigned from the Na- tionalist party executive com- mittee and the government's oil procurement committee. "I was formally investigated by the Tax Compliance Unit, but I have not been informed of any outstanding issues here. I in- terpret this as good news." Falzon had admitted that be- tween 1975 and 1985, he was involved with other Maltese professionals in an architectur- al and civil engineering consul- tancy providing services abroad. These services were provided under the aegis of a Maltese registered company of which he was a shareholder and director. Their first job was in partner- ship with a Swiss architectural firm, requiring frequent visits to Switzerland and the opening of bank accounts so that funds placed by their Swiss partners could passed on to the Maltese company. "When the company was liq- uidated, and considering the political situation in Malta in 1985-87, I decided to retain a Swiss account in my name," Falzon said. "Eventually all the money in the account was re- patriated to Malta and today I have no money deposited in any Swiss bank or any other for- eign bank whatsoever. My fiscal position in Malta has long ago been regularised." Asked why he decided to take up writing again, Falzon said: "It is part of my life. Writing and political analysis is a passion and it gives me satisfaction." He added that he was also ap- preciative that Campus FM, PBS and MaltaToday had not asked him to stop his contributions. CONTINUED FROM PAGE 1 In 2003, property owners Vincent Farrugia, Ernest Grech, and companies E.G. Property Holdings and El Dara, were taken to court by the Commis- sioner for Lands for having abusively constructed their apartments at 83, Spinola Road, right out onto the public foreshore on Spinola Bay. In 2006, the courts ordered Farru- gia and Grech to restore the public foreshore to its former pristine con- dition. The decision was subsequent- ly confirmed in 2009 by the Appeals Court: a definite sentence that meant that the developers would have to demolish the entire building. However, instead of proceeding with the court decision, in May 2010 the Commissioner of Land decided that the area that had spilled out on- to the public foreshore would be of- fered up for sale by public tender – a lifeline for the developers that meant they could legally buy up their abu- sive extension. The estimate by the government- appointed architect, Michael Schem- bri, was that the abusive footprint of 165 metres squared should be sold for €950,000. The GPD issued the tender, subject to the right of first refusal, with the sole offer having been that of Vin- cent Farrugia's company Eighty Two Co. Ltd, totalling not more than a ri- diculous €192,225. The Commissioner for Lands wrote back in August 2010, arguing that the property could only be sold for nothing less than €950,000, and that unless it raises its offer Eighty Two Co. would lose its right to the tender. Eighty Two Co. wrote back to the Commissioner of Lands, arguing though their lawyer Peter Fenech that the government price was "un- reasonable". They said that the com- pany had been misled by the Lands Department, when it had enquired way back in 2003 as to whether there were any outstanding claims on the land since it was originally church property that was passed on to the State. "The [€194,000] bid is fair and rea- sonable… the [€950,000] valuation is unrealistic and inexplicable. It is 500% higher than all other profes- sional valuations obtained by my cli- ents," lawyer Peter Fenech wrote in Eighty Two Co.'s protest. So the company proposed in De- cember 2010 that the matter be re- solved by the nomination of an 'ad hoc committee' composed of three architects – one nominated by Eighty Two Co., the other nominated by the GPD. The chairman of the commit- tee would be nominated by the com- pany from a list of three architects proposed by the GPD. The idea was to have the commit- tee listen to both parties and decide on a fair price to be paid for the prop- erty. The decision was subsequently green-lit by finance minister Tonio Fenech, who signed the GPD's re- quest. The GPD nominated Michael Schembri as the architect who came up with the original estimate, while Eighty Two Co. nominated Edwin Mintoff and selected Anton Zammit as chairman. By November 2011, the committee had decided to slash over €400,000 from the original price being re- quested. In a letter sent to parliamentary secretary for lands Jason Azzopardi (whose portfolio fell under the fi- nance ministry) on 29 November, 2011, the director-general of the GPD at the time, Iman Schembri, said the final price was agreed to be €550,000. Schembri proposed two options to Azzopardi: reissue the tender for €525,000, now discounted by 4.5% for the property tax that should have been payable on the sale, or grant the site on perpetual emphyteusis at €15,700 annually. The second option meant that the government would have received €15,700 for 15 years (€235,500), and then €314,000 on the fifteenth year of payment. "Since the land is ex-church prop- erty, option 2 is being recommended as this option will ensure net revenue to government of the full amount over a future period of time. Farrugia has also indicate that, for cash flow purposes, he would prefer this op- tion," Schembri told Azzopardi. In February 2012 however, Azzo- pardi was once again recommended by the GPD to choose the first op- tion, which he duly authorised. The GPD director Iman Schembri proceeded to offer Eighty Two Co. 30 days to come forward to sign the €525,000 contract, without any ten- der having been issued for the land itself as had been originally outlined. The payment was further facilitat- ed in April 2012, when Schembri ac- cepted a request by Peter Fenech, as lawyer for Eighty Two Co., to pay the €525,000 over a period of five years. mvella@mediatoday.com.mt Original €950,000 tender value slashed to €520,000 Michael Falzon returns MaltaToday columnist returns to weekly slot and talks of his belief that he was not on alleged Swissleaks list As it stands today: Spinola Bay's public foreshore encroached by private property that the courts said had to restored to their former, pristine condition