NAO exposes scandalous manoeuvres to favour Fortina proprietors. Keith Schembri, Joseph Muscat’s Chief of Staff, involved in these manoevres

Arnold Cassola, Momentum Chairperson, stated: “Over four years ago, I had requested an investigation by NAO into irregularities in land concessions by government to the Fortina Group, spearheaded by prime PL donor, Michael Zammit Tabona”.

Amongst other things, I had requested

 “- Whether the evaluation process (and decision as to the amount of compensation for the waiver of any conditions) has been carried out in a transparent manner, according to established procedure and established professional norms according to clearly identifiable criteria which are the same for all players in the field;

– Whether fair and good value for money has been obtained and whether factors such as public and social wellbeing have been taken into consideration”.

After over four years, the NAO investigation report just tabled in parliament has confirmed that my information was right. The investigation reveals:

a. Zammit Tabpona’s Fortina was being leaked valuations by Lands Authority. Nao writes: “No reasonable explanation was put forward by either the Lands Authority or Fortina as to how a sensitive document, meant to be accessible solely to the former, ended up in the possession of the latter, raising serious concerns regarding the transparency of the process and the integrity of those involved”.

b. NAO concluded that the Government accepted €8.1 million for waivers that the NAO independently valued at €21 million, representing a detriment to public finances of €12.9 million.

c. “Furthermore, a critical, substantially higher valuation report by an independent audit firm, commissioned by the Lands Authority’s Board of Governors (BoG), was deliberately suppressed by the then Chair of the BoG”.

d, “Chief of Staff’s Involvement: The Chief of Staff OPM, Keith Schembri, “convened a meeting with the firm” to discuss its valuation and later “authorised the settlement of the invoices.”

● The NAO found this involvement “anomalous and questionable” as “there was no functional link between the role of the Chief of Staff OPM and the settlement of fees due by the Lands Authority.”

e. Prime Minister Joseph Muscat’s Involvement: The Prime Minister recalled a meeting with Fortina and his Chief of Staff around October/November 2018 to “push for progress” due to Fortina’s project stalling and the involvement of a major gaming company relocating to Malta”.

Arnold Cassola concluded: “Apart from the non-transparent behaviour of the Lands Authority, it is scandalous that Prime Minister Joseph Muscat himself got involved in the talks to speed up Fortina’s interests, to the detriment  of the Maltese taxpayer, and that his Chief of Staff, Keith Schembri, also convened meetings which he had no authority to convene or attend.

Muscat and Schembri should be investigated for their non transparent manoevres to favour Fortina, whose owner is a major PL donor”.

Arnold Cassola

Momentum

———- Forwarded message ———
From: Arnold Cassola
Date: Sat, 8 May 2021 at 08:24
Subject: Press Release: Talba investigazzjoni Fortina Hotel u ksur kundizzjonijiet art pubblika
To:

Please find my request to Auditor General to investigate Fortina Hotel’s non adherence to stipulated conditions, in connection with granting of public land.

Arnold Cassola

Independent Candidate

———- Forwarded message ———
From: Arnold Cassola
Date: Fri, 7 May 2021, 19:06
Subject: Fwd: Talba investigazzjoni Fortina Hotel u ksur kundizzjonijiet art pubblika
To: Deguara Charles at NAO

L-Awditur Ġenerali,

Charles Deguara, NAO

Għażiż Awditur Deguara,

   Qiegħed nibgħatlek talba dettaljata (ara attached) għal investigazzjoni dwar ksur ta’ kundizzjonijiet da parti tas-sidien tal-Fortina Hotel, in konnessjoni ma’ art pubblika mogħtija lilhom mill-Gvern.

   Ser nibgħatlek dokumenti aġġuntivi  bil-posta, għaliex ma jgħaddux bl-email. 

    Nirringrazzjak tal-attenzjoni u nistenna li nisma’ mingħandek.

    Inselli għalik,

     Arnold Cassola

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