Gaffarena charged over Valletta property deal after article triggers probe

Mark Gaffarena, his wife and two others ended up in the dock as a result of a police investigation triggered by a Times of Malta article, a court has heard.

The 2015 article had revealed that the Lands Department, under the guidance of then parliamentary secretary, now minister, Michael Falzon, paid €1.65 million to Mark Gaffarena for part ownership of a palazzo in Valletta’s Old Mint Street, which he had bought for a fraction of the price just weeks prior to the deal.

The scandal ended up before the law courts, which, in 2018, ordered that the deal be rescinded and all transfers revoked. The judgment was confirmed on appeal.

Gaffarena, 49, his wife Josielle, 43, notary Anthony Hili, 43, and former Lands employee Margherita Falzon, 71, were then accused of being part of, or appearing on a contract that breached a provision of the Disposal of Government Land Act. They are all pleading not guilty.

Mark Gaffarena and three others were charged in 2023. File photo: Times of Malta

They were arraigned under summons on April 24, 2023. The case has since progressed.

On Thursday morning, police inspector Andy Rotin, who has since taken over the case, was cross-examined by defence lawyers.

He explained that the investigation was triggered by an article that appeared in the Times of Malta on May 31, 2015, titled 'Gaffarena makes mint on property in Valletta'. Then police superintendent Ian Abdilla and police inspector Yvonne Farrugia were the investigating officers. 

A second article appeared on the matter on June 24, 2015, which was published in MaltaToday, Rotin added.

It was only in 2022 that Rotin was assigned the case, when he was tasked to review the investigation.

The police inspector compiled a report, and a decision was taken to take criminal action against the four accused.

The police interrogated Hili and Falzon, among others.

The police inspector noted that, initially, the scope of the investigation was related to alleged corruption. However, Rotin then observed elements of an alleged offence linked to the Government Lands Act. 

“This was also confirmed by the Civil Court, which declared that the expropriation was illegal,” the officer recalled.

Asked by the defence, how Margherita Falzon, who was a Lands’ employee, featured in the investigation, Rotin replied that her name appeared on the contract.

Lawyer Stephen Tonna Lowell drew his attention to a proviso contained in the Disposal of Government Land Act, which provides a defence for individuals who are charged with an offence against the same act if the disposal is not in accordance with the law.

In such cases, it is up to the accused to prove that they took reasonable steps to ascertain that the deed would not be in contravention of the Act.

Rotin said the decision was to charge Falzon in view of the investigation.

“Did the inspectors handling the case before you investigate the Lands chairman or CEO?” Tonna Lowell asked, pointing out that his client signed the deed on his behalf. Rotin replied he would have to check.

The defence lawyer later clarified that he was not attempting to cast a doubt on the chairperson or CEO at the time, but to understand how the investigation and the decision to prosecute came about.

In both Falzon’s and Hili’s cases, the police decided to take action against them, in view of the outcome of the investigation, Rotin explained, after it was pointed out that none of them appeared in the article published by Times of Malta.

He added that the decision to arraign Hili was on the basis that he drew up the contract, adding that the investigation was much wider than the people arraigned in court over the matter.

Muscat, Falzon not questioned about the deal

Lawyer Mario Mifsud enquired whether former prime minister Joseph Muscat and former Lands minister Michael Falzon were questioned in connection with the case. Rotin replied in the negative.

Mifsud asked whether any individuals working within the office of the prime minister at the time were questioned and the police inspector replied he needed names to check against the investigation file.

The defence lawyer said there are “two names” from Falzon’s office which he could not recall and will ask about them next time.

Rotin remarked that the police had spoken to “several” people.

Mifsud then shifted his attention to the movement of the file and the former director for estate management at the now-defunct Lands Department, Carmel Camilleri.

The investigating officer confirmed that Camilleri’s statement had been taken, and Abdilla had investigated the movement of the file, but he would need to check the investigation’s records to reply about the specific movement.

The case continues next month.

Magistrate Kevan Azzopardi presided over the case.

Police inspector Andy Rotin prosecuted.

Lawyers John Gauci and Jacob Magri are appearing for Hili. Lawyer Mario Mifsud is appearing for Mark Gaffarena and Josielle Gaffarena. Lawyer Stephen Tonna Lowell is appearing for Falzon.