Updated with remarks by minister Silvio Schembri.

Activists want the National Audit Office to investigate Economy Minister Silvio Schembri over controversial land transfers approved while he was lands minister and which have paved the way for mega-construction projects in Mellieħa and St Julian's. 

Residents’ rights group Il-Kolletiv, a group of Mellieħa residents, independent politician Arnold Cassola, PN MP Albert Buttigieg, Mellieħa mayor Gabriel Micallef, and deputy mayor Matthew Borg Cuschieri have all endorsed the request for the NAO to investigate Schembri.

In a statement later (see below) Schembri said the Lands Authroity acted independently of him, and the claims made by the activists were not correct.

Schembri's ministerial remit included the Lands Authority, which approved the controversial land transfers, until that responsibility was handed to Stefan Zrinzo Azzopardi following a reshuffle this past January.

Petitioners want the NAO to look into a land deal that saw a 4,000 square metre green lung in Mellieħa transferred to T&S Property Holdings (owned by Paul Attard) on a perpetual lease for an annual payment of almost €400,000.

T&S intends to turn the land into a large apartment block, to residents' dismay.

Activists also want the NAO to investigate the sale of a St George’s Bay public alley for €134,000 to developer Anton Camilleri, known as tal-Franċiż, which allowed him to consolidate a land parcel he intends to turn into a massive mixed use development at the Villa Rosa site.

“Silvio Schembri was Lands minister when these two deals happened. Therefore, he is politically responsible,” Wayne Flask of Il-Kolletiv said on Tuesday.

He said that the two deals were suspicious, especially since the price at which they were sold was "well below market prices."

Last week, Il-Kolletiv asked Silvio Schembri to divulge any dealings he had with Camilleri Tal-Franċiz and Paul Attard.

From left: Arnold Cassola, Olivia Gauci, Wayne Flask and Albert Buttigieg outside NAO offices on Tuesday. Photo: Jonathan Borg

Both developers are key figures in the Malta Developers Association.

“Minister Schembri has not published anything, so we are asking the NAO to step in so that we and the public can know the truth,” Flask said.

PN MP Buttigieg questioned how prime real estate in Paceville that “costs millions” was handed over for “a price lower than a one-bedroom apartment.”

“We want to know how that valuation was made,” he said.

He said the conditions to sell the alley were tailor-made for the Villa Rosa site owner.

“Instead of applicants following policies and procedures, policies are changing to accommodate individuals,” Buttigieg said.

Cassola said that massive projects at St George’s Bay will severely harm residents' quality of life.

He pointed to comments made by prime minister Robert Abela who said the needs of residents in Pembroke are being taken care of.

“If the prime minister is man enough, he should move to a flat in Pembroke next to the DB project and spend the next 15 years living with the noise," the academic and independent candidate said. 

The Villa Rosa site is marked in blue in this aerial shot provided by the Planning Authority.

Cassola said he has filed a freedom of information request asking if and what meetings took place with Tal-Franċiż.

Minister: The Lands Authority acts independently

In a statement on Tuesday afternoon, Minister Silvio Schembri said that the conclusions of the audit would only confirm what he had already stated – that the Lands Authority operates independently from him.

“On the other hand it is hypocritical that an Opposition MP is one of the persons making this request when the authority board includes a Member of Parliament of the Opposition,” Schembri said.

“Whilst I respect the right of every individual to ask for such an audit, I also expect that the persons requesting such audits verify basic facts. In this case the claims being made are totally incorrect. These facts can easily be verified, and I remain confident that the audit will confirm the integrity of the process adopted,” the minister said. 

Speaking to Times of Malta later on Tuesday, Schembri denied that the Mellieħa public land was handed for development at a price lower than its market value.

The €400,000 is a perpetual lease, not the actual price of the property, he argued. Attard would have to fork out more than €13 million if he were to purchase the land, he said, "and that is even higher than what the NGO valued it".

He also refuted claims that he somehow influenced preferential treatment for the developer.

Why is the Villa Rosa project controversial?

Last week, Times of Malta reported that cabinet had formally approved a partial review of the St George’s Bay local plans, paving the way for another mega-development in the area, this time on the site of Villa Rosa.

The amendment could mean that the project, in front of St George’s Bay submitted by Anthony Camilleri, known as Tal-Franċiż, could grow exponentially from the originally proposed 57,000 square metres.

In comments to Malta Today on Monday, Robert Abela insisted the review is intended to bring the area's local plan in line with a planning policy for hotels that allows buildings much higher than the local plan does. 

The Villa Rosa site sits right next to another plot of land that is being developed into another mega-project by db Group.

PN MP Albert Buttigieg and Pembroke PL mayor Kaylon Zammit are among a chorus of voices who are opposing the plans, with Zammit saying another mega project on Pembroke’s doorstep will “bury” the town’s residents.

Why is the Mellieħa heights project controversial?

A 4,000 square metre government-owned green area was transferred to T&S Property Holdings in 2023 with the company paying an annual fee of €380,000, to use the space despite the land’s market value being over €12 million.

T&S Property Holdings has now applied to turn the site into 109 apartments and 171 underground garages. Earlier this month, dozens of Mellieħa residents gathered to protest against the plans.

Olivia Gauci, a Mellieħa resident speaking on Friday, said the land should be given back to the people and remain a green space.

“We need more open spaces,” she said.