Entrepreneur Marco Gaffarena has lost a legal bid to force through a promise of sale for one-fourth of an Old Mint Street property which was the subject of an expropriation scandal. 

In 2015, Times of Malta had revealed that the government paid Mr Gaffarena €1.65 million for part-ownership of the Valletta property, which he had bought for a fraction of that price just weeks before.  

The scandal ended up before the law courts, which in 2018 ordered that the deal be rescinded and all transfers revoked. 

Mr Gaffarena had subsequently filed a civil suit to force the Cefai family, as co-owners of one-fourth of the property at 36, Old Mint Street, Valletta, to honour the promise of sale they had signed concerning the property. 

During the proceedings, lawyer Tanya Sciberras, when cross-examining Mr Gaffarena, had asked whether he was aware of the expropriation at the time of signing the promise of sale.

“I don’t know. I cannot tell you yes or no because I don’t recall dates,” Mr Gaffarena had replied.

That point proved crucial in determining the outcome of the case.

The First Hall, Civil Court, presided over by Mr Justice Mark Chetcuti, observed that the respondents had “a valid reason” for refusing to honour their obligation under the promise of sale, given that “both prior to and after” the agreement, two-fourths of the property had been hit by an expropriation order “without their knowledge and through no fault of their own.”

Upholding this plea raised by the respondents, the Court rejected Mr Gaffarena’s application to force the sale.