Issue link: https://maltatoday.uberflip.com/i/770367
maltatoday, SUNDAY, 8 JANUARY 2017 4 News CONTINUED FROM PAGE 1 NOT taken notice of in the run-up to Christ- mas and the holiday season, a damning re- port by the Auditor General into the 2009 land transfer showed that Zaren Vassallo – owner of Vassallo Builders Group – got public land for cheap, while also highlighting gross shortcomings in the process. The NAO claimed that the €8 million site was illegally transferred to Marsovin so that they could then sell it off to Vassallo Builders. The plot of land at Tal-Istabal, Qormi, measuring approximately 21,000 square me- tres, was originally granted to Löwenbräu Ltd by the Government of Malta on 13 No- vember, 1990. This direct allocation of land was authorised by the then Minister for Eco- nomic Affairs, George Bonello du Puis, and justified in terms of the economic benefit that was to be generated. The minister had established that the allo- cation was to be made on a perpetual basis against the annual payment of a non-revisa- ble ground rent of Lm10,000 (€23,294). The contract stipulated that the land was to be used specifically for the production of alco- holic and non-alcoholic beverages. In 2009, Marsovin – the owners of LBM Breweries – entered into a contract with Nazzareno Vassallo, the owner of Catermax, to sell him the land in question once they redeemed the ground rent. In allowing the redemption of the ground rent, the Lands Department also waived the condition that the land was to be used specifically for a bev- erages plant – the direct dominium – and with that any premium to be paid for such a waiver. In 2011, after the matter was brought to the attention of the House of Representatives by Labour MP Charles Mangion, the Com- missioner for Lands notified Catergroup Ltd (LBM Breweries Ltd) that it would be seeking to annul the 2009 agreement. Bonnici claimed it was at this point that Azzopardi interfered directly, so that the legal procedures were halted on 30 January, 2012 and three architects appointed to es- tablish the true value of the transaction. This committee of architects had estab- lished the cost of the withdrawal of the original direct allocation conditions based on 1990 values, leading to a valuation of €706,400, Bonnici said, when the Auditor General concluded that the land was in fact worth €8 million. He insisted the government ended up ow- ing Vassallo money after property he used to pay off the evaluation, was found to be worth more than previously estimated. Azzopardi reacted furiously to Bonnici's al- legations yesterday, pointing out that he had acted immediately upon being made aware of the unauthorised removal of the clause re- stricting the site's use. In comments to MaltaToday, he vehe- mently denied any wrongdoing, accusing the justice minister of outright lying, pointing out that he – Azzopardi – had been the one to order legal action against Vassallo in the first place. "In 2009, the ground rent had been re- deemed, so arbitration was entered into between an architect appointed by Vassallo and another from the Lands Department in a committee chaired by Alex Torpiano, who was also appointed by the Lands Depart- ment," he said. Azzopardi confirmed that the commit- tee had established the value of the removal of the condition that the land be used as a brewery at around €700,000. "That figure is the value of the condition, not the freehold value of the land as Bonnici is saying," Azzo- pardi said. "Labour is making the dishonest argument that the €700,000 figure, that was reached by three architects, represents the freehold val- ue of the 1.2 tumoli of land," he complained. "But the architects had made it clear that the figure represented the value of the condition that the land be used as a brewery." Azzopardi said that Vassallo took "this al- leged favour" the government was said to have done him so badly, that he filed a sepa- rate lawsuit against the Commissioner for Lands and Marsovin to recover the €700,000 that he had paid because he had thought that he had bought the land freehold. "This shows how untrue the assertion is that we made him any favours," he said. Azzopardi insisted that as soon as he found out that the condition restricting the use of the land to drink production had been re- scinded, he had immediately phoned the Attorney General and asked him to start legal actions against Vassallo "as the Lands Department had abusively and without au- thorisation, dropped a condition from the contract." He said he had even been prepared to re- scind the contract, if necessary. "Bonnici is a liar for saying that I colluded with Vassallo," Azzopardi said. "I never met Vassallo or any- one connected to him." But Bonnici, in his press conference, insist- ed Azzopardi had not assumed any political responsibility for this "very serious case in- volving over 21,000sqm". In its report, the NAO said that Azzopardi "shoulders an element of responsibility" because he was aware of the nominal com- pensation being claimed by the GPD, charg- ing him with having failed to "question the grossly misrepresentative value of the land, which was a shortcoming of ministerial oversight". "Jason Azzopardi, the same person who is calling everyone corrupt, had sought a com- promise," Bonnici said. "And they found that compromise." Asked what he meant by political responsi- bility, Bonnici said that he recalled the leader of the opposition saying that he would not tolerate corruption for more than a few sec- onds. He called on Simon Busuttil to now put his words into action. In the Gaffarena case, the government had immediately filed a court case to return the land to the government, the minister re- called. "The way in which this contract was made, showed great skill." Bonnici said. "I have to hand it to him." 'Be my guest': Bonnici reacts to Azzopardi's threat of libel action Justice Minister Owen Bonnici is claiming that former lands minister Jason Azzopardi is responsible for the way the Lowenbrau plant was undervalued to be sold to Nazzareno Vassallo Nazzareno Vassallo acquired the Lowenbrau plant from Marsovin's LBM Breweries just a month after they redeemed the ground rent without the condition that the plant remain a brewery, a condition that led to the undervaluation of the land at Qormi