Issue link: https://maltatoday.uberflip.com/i/592425
maltatoday, WEDNESDAY, 28 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 Gaffarena expropriation deal 'illegal', report concludes CONTINUES FROM PAGE 1 In 2014, Marco Gaffarena – a shareholder in J Gaff Service Station Ltd – was granted a controversial per- mit for the J. Gaff service station in Qormi by the Malta Environ- ment and Planning Authority, after it had been forcefully shut down in 2008 and again in 2009 after its owners built new struc- tures on site illegally. In reaction to the controversial permit, Joe Gaffarena said that his eight children had suffered "hardship" for five years due to the station's closure. On Sunday, MaltaToday re- vealed that the Office of the Prime Minister could be in a strong legal position to recoup lands granted to Marco Gaffare- na, from a controversially fast- track expropriation of a Valletta palazzino he owned. An inquiry by the OPM's in- ternal audit and investigations department (IAID) which was handed over to the Auditor Gen- eral, has revealed that the lands granted to Gaffarena as payment for the Valletta property expro- priated from him, was in excess of a legal 30% ceiling which such land valuations cannot exceed. Gaffarena made headlines this year when The Times revealed that the property owner was granted €1.65 million in a land and cash compensation, for just a 50% stake in the Old Mint Street building that houses government offices for the Building Industry Consultative Council. The two major political parties have so far failed to provide any details on donations received by Gaffarena family over the past years. The Gaffarenas are thought to have backed candidates from both the PN and Labour camps, especially in the sixth and sev- enth electoral districts. The €1.65 million expropriation was controversial because Gaf- farena originally took ownership of 25% of the building in 2007 for just €23,294 – and was compen- sated €822,500 in cash and lands in January 2015. But in February 2015 he had al- so managed to purchase another 25% portion of the building for €139,762, and was paid another €822,500 in lands and cash in April 2015. He also personally selected the lands for compensation, all of which were situated close to land he owned or leased, or which he intended to develop, adding even more value to the property he re- ceived in compensation. The IAID discovered a trend of excessive valuations of land which may have been ongoing since 2008. In the Gaffarena case, the land transferred was in excess of a 30% ceiling set in the Disposal of Government Land Act: that in land exchanges, the value of the government land to be given can- not exceed 30% of the value of the expropriated land. It appears that in their inter- views with staff from the Gov- ernment Property Department, the IAID found that there were a number of cases of expropria- tion and land transfers which might have breached the law in the same way. MaltaToday understands that there are three other cases which breached the 30% ceiling, one in 2008, another in 2009 and anoth- er in 2013. Replying to questions on the investigation, Azzopardi urged for "prudence" on commenting on the IAID findings, since the National Audit Office is also in- vestigating the Gaffarena expro- priation deal. Asked what political respon- sibility the PN was expecting, Azzopardi said the Opposition always insisted that something "stank" with the deal that saw Gaffarena take €1.65 million in a cash-and-lands deal for his 50% ownership an Old Mint Street palazzo that houses governments offices. "Someone should answer for it… Now that the NAO is in- vestigating the IAID report, we prefer waiting for the outcome," he said. Azzopardi added that he, former finance minister Tonio Fenech and former Lands Commissioner Albert Mamo had been called in for an interview by the IAID. "Fenech and I were asked about two cases which had nothing to do with this case," he said, con- firming that the two cases were pre-2013. He added that despite asking to give his statement un- der oath, his request was not ac- ceded to. Marco Gaffarena got compensation in excess of the legal limit