Issue link: https://maltatoday.uberflip.com/i/582103
maltatoday, WEDNESDAY, 7 OctObEr 2015 5 News A ONE NIGHT STAY AT HILTON WITH DINNER AT BLUE ELEPHANT We are nearly at 100,000 LIKES! Like our page and create an online account with www.maltatoday.com.mt to be in a chance to win. Executive lounge facilities include: î3ULYDWHFKHFNLQ FKHFNRXW î%UHDNIDVWLQWKHORXQJH î$IWHUQRRQ7HDZLWKFDNHVDQGSDVWULHV î3UHGLQQHUGULQNVLQFOXGLQJFDQDS«VDQGDOFRKROLF drinks î7HDFRIIHHDQGQRQDOFRKROLFGULQNV available throughout the day 7+(5220 $FFRPPRGDWLRQLQRQHRIRXU&RQWHPSRUDU\([HFXWLYH5RRP including breakfast and Executive Lounge facilities Original €950,000 tender value slashed by 45% COntinued frOm page 1 Malta- Today understands the NAO will investigate why the GPD and its lands department proceeded to negotiate with the owners of the apartment block. The estimate by the govern- ment-appointed architect, Michael Schembri, was that the abusive footprint of 165 me- tres squared should be sold for €950,000. The GPD issued a public ten- der, subject to the right of first refusal, with the sole offer hav- ing been that of Vincent Farru- gia's company Eighty Two Co. Ltd, totalling not more than a ridiculous €192,225. The Commissioner for Lands wrote back in August 2010, ar- guing that the property could only be sold for nothing less than €950,000, and that unless it rais- es its offer Eighty Two Co. would lose its right to the tender. Eighty Two Co. wrote back, arguing that the government's price was "unreasonable". They said that the company had been misled by the Lands Depart- ment, 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 reasonable… the [€950,000] valuation is unreal- istic and inexplicable. It is 500% higher than all other profession- al valuations obtained by my cli- ents," their law yers wrote. So the company proposed in December 2010 that the matter be resolved by the nomination of an 'ad hoc committee' composed of three architects – one nomi- nated by Eighty Two Co., the other nominated by the GPD. The chairman of the committee would be nominated by the com- pany from a list of three archi- tects proposed by the GPD. The idea was to have the com- mittee listen to both parties and decide on a fair price to be paid for the property. The decision was subsequently green-lit by finance minister Tonio Fenech, who signed the GPD's request. The GPD nominated Michael Schembri as the architect who came up with the original es- timate, while Eighty Two Co. nominated Edwin Mintoff and selected Anton Zammit as chair- man. By November 2011, the com- mittee had decided to slash over €400,000 from the original price being requested. In a letter sent to parliamen- tary secretary for lands Jason Azzopardi (whose portfolio fell under the finance 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 op- tions to Azzopardi: reissue the tender for €525,000, now dis- counted by 4.5% for the prop- erty 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 property, option 2 is being rec- ommended as this option will ensure net revenue to govern- ment of the full amount over a future period of time. Farrugia has also indicate that, for cash f low purposes, he would prefer this option," Schembri told Az- zopardi. But in February 2012 however, Azzopardi was recommended by the GPD to choose the first op- tion, which he duly authorised. The GPD director Iman Schem- bri proceeded to offer Eighty Two Co. 30 days to come for- ward to sign the €525,000 con- tract, without any tender having been issued for the land itself as had been originally outlined. The payment was further fa- cilitated in April 2012, when Schembri accepted a request by Eighty Two Co., to pay the €525,000 over a period of five years.