Silvio Schembri cleared over property conflict of interest claims

Updated 7.24pm with statement from Robert Aquilina

Complaints that Economy Minister Silvio Schembri had a conflict of interest for using the properties of businessmen as his constituency offices are “unfounded,” the Standards Commissioner ruled on Thursday.

However, the commissioner’s report did conclude that Schembri was renting a Siġġiewi office from developer Anton Camilleri (known as tal-Franċiż) for €3.50 a day.

He also found that Schembri had been using a Luqa office, which he had already promised to buy, for over a year before he finally purchased it.

Robert Aquilina, then president of Repubblika, had asked the commissioner to investigate Schembri on the back of media reports that suggested possible conflicts of interest.

“The complaint is based on media reports that make a direct connection between Minister Schembri’s acquisition of the offices in Luqa and Siġġiewi and the transfer of public land in Mellieħa and St George’s Bay,” the Standards Commissioner’s report said.

“The allegation is that the minister ordered the transfer of the land in question to the owners of the offices because they allowed him to use the offices under terms favourable to him.”

The media reports by The Shift said that Schembri, then lands minister, was using property owned by Paul Attard as his constituency office in Luqa.

The potential conflict of interest came from a land transfer in Mellieħa that allowed Attard, a developer, to construct a mega-block in the open area.

Another article reported that Schembri was using a Siġġiewi property owned by developer Camilleri as another constituency office on the back of a land transfer of a St Julian’s alleyway, which Camilleri needed to own in order to develop his mega-complex at the Villa Rosa site.

Schembri says he has no say in land transfer decisions

In his reply to Aquilina’s complaint, Schembri argued that he, as minister, had no direct say on who receives public land, insisting that it is the Lands Authority's board of governors who take such decisions.

The Standards Commissioner concluded that, despite the law stating that a board and not the minister makes decisions, this does not mean that an entity is free from political interference and, thus, a minister’s would-be conflicts of interest.

“It appears that the law does not give the minister the power to issue instructions regarding the transfer of specific parcels of land. Similar provisions apply to other public authorities, but it seems that some of these authorities have nevertheless been given, and have followed, instructions to accommodate particular individuals.”

“Unfortunately, therefore, the law cannot be regarded as a guarantee of the autonomy of a public authority. One can imagine that it is difficult for the members of a public authority’s governing board to assert their autonomy if they are dependent on the minister for their appointment.”

However, the commissioner pointed out that in the Lands Authority, the minister does not have controlling power, as he appoints five out of 10 members of the board of governors.

The other five members are appointed by the prime minister (two members), the leader of the opposition (one member), the Planning Authority (one member), and the Environment and Resources Authority (one member).

Schembri using Luqa property before sale

On the Luqa property, the Standards Commissioner did note that the promise of sale period took longer than expected and the sale only happened a month after the standards complaint against Schembri was made.

The promise of sale in Luqa was made on December 15, 2021. It stipulated that the final contract of sale had to be signed no later than June 30, 2022.

He bought the Luqa office for €180,000.

“The actual sale of the office in Ħal Luqa was carried out through a contract dated May 5, 2023. This was more than a month after the complaint against Minister Schembri was filed,” the commissioner said.

The commissioner also pointed out that Schembri had been using the office from winter 2022, shortly before that year’s general election.

The Standards Commissioner said that there may have been cause for complaint when the submission was made.

But “if there was any complaint that could have been justified when the complaint was submitted, this has now been set aside in view of the acquisition of this property by Hon. Schembri.”

Siġġiewi office cost Schembri €3.50 a day

In his declaration, Schembri said that he also rents a Siġġiewi property as his constituency office.

It is owned by Camilleri who intends to develop the Villa Rosa site.

“The rent for this property amounts to €3.50 per day, or €319.38 every three months. This appears to be a low amount compared to prevailing commercial rents, but the undersigned cannot arbitrarily decide on this,” the Standards Commissioner said.

The complaint also pointed to a Rabat office. However, the Standards Commissioner found that the property was owned by a friend and former Labour MP who had no connection to business.

The Standards Commissioner “does not consider that the granting, by tolerance, of the minister’s office by a lawyer friend of the minister in any way falls under the scope of the complaint, because the person in question is not a ‘businessman’ or one of the ‘major contractors’ mentioned in the complaint.”

€3.50 rent "suspicious" 

Commenting on the Standards Commissioner's findings, Robert Aquilina suggested the police commissioner should call in Schembri "this evening" to question him about his actions and the offices he is using.

He remarked that paying a rent of "a mere €3.50" was "highly suspicious".

"No one in Malta can ever believe that the true market rental value of that property in one of the main streets of Siġġiewi is a mere €3.50. This is a very serious matter and it's highly suspicious," Aquilina said.