Fortina land deal shows ‘systemic corruption' - Repubblika

NGO says report exposes 'toxic closeness' between big business and political parties

Rule of law NGO Repubblika said a damning report into the Fortina land deal confirmed what the public had long suspected – that the Joseph Muscat government deliberately undermined procedures to transfer public assets into the hands of favoured businessmen.

The National Audit Office investigation shows that a key valuation report was concealed, allowing the owners of the Fortina group to pay less than market value and pocket higher profits. 

“This was not a mistake. It was a conscious act of corruption,” the NGO said.

The report again places former chief of staff Keith Schembri at the centre of the manoeuvring, while Prime Minister Robert Abela continues to defend Muscat, Repubblika said in a statement. 

This is happening even though the former prime minister moved directly from Castille into a consultancy role with the Fortina owners, in a similar manner to the Vitals case, the NGO said. 

The Auditor General also noted that James Piscopo, then a senior public official, admitted to providing Fortina with insider information while negotiations with the government were underway. Although he declared a conflict of interest, he still exploited the situation, the report found.

“This is corruption in broad daylight, yet Piscopo continues to enjoy impunity,” Repubblika said.

The NGO described the affair as exposing the “toxic closeness” between big business and political parties and compared it to Italy’s Tangentopoli, where commercial gains from state favours flow back into party coffers. 

“The losers are the Maltese people, robbed of public land and resources, while honest competition is destroyed,” the NGO charged.

On top of environmental damage and overdevelopment in Sliema, taxpayers were effectively made to subsidise the profits of a few.

The NGO called on the police and Attorney General to act without delay, stressing that the Auditor General, with far fewer powers, had unearthed evidence that enforcement bodies had ignored for years.

“Malta cannot move forward while those who committed and are shielding corruption of this scale continue to enjoy impunity,” Repubblika said.

In a statement on Monday night, Fortina said it remains committed to transparency and will provide appropriate responses following a comprehensive review of the document.

Opposition leader Alex Borg demanded a public inquiry and a police investigation into shortcomings.

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