Developers of the Corradino construction site that collapsed in December 2022, killing Jean Paul Sofia, told Malta Enterprise that they already had a thriving furniture business in Ħandaq.

But when the Malta Enterprise official who assessed their application visited that business, he found just one worker operating inside a garage.

The admission, made by Malta Enterprise official Kevin Camilleri when testifying before a public inquiry on Friday, startled inquiry member Charles Deguara.

“Excuse my naivety, but would a business employing one worker be worthy of building a factory?” Deguara asked.

Camilleri acknowledged that he did not ask who the worker was and said he could not confirm whether there was any furniture in the Ħandaq garage, as the visit took place over four years ago.

Discrepancies in figures

In gruelling testimony, Camilleri appeared flustered as he was questioned about discrepancies in figures listed by the project’s two developers, Matthew Schembri and Kurt Buhagiar.

The two had informed Malta Enterprise that they intended to invest €262,500 in the Corradino project – the minimum investment required by Malta Enterprise, Camilleri said. 

But lawyer Therese Comodini Cachia noted that while their application stated that they would be spending €112,000 to build the factory and the rest on new machinery, the list of machinery only amounted to €67,000.

Camilleri struggled to explain the discrepancy, arguing that machinery was not itemized in the letter of intent and that machinery evolved and developers could therefore end up spending more money on it over time.

Business plan not signed by accountant

The witness said that the developers’ application was “all good” and included a business plan, bank references and other necessary paperwork.

He however struggled to explain how the application had been approved despite the business plan not being signed by an accountant.

“Was it normal practice for ME to accept a business plan that was not signed by an accountant?” Comodini Cachia asked him.  

When Camilleri pointed to a signature in the paperwork, Comodini Cachia noted that the signature he was referring to was of a “witness to signature” on the partnership agreement signed between Schembri and Buhagiar.

Comodini Cachia is representing the family of Jean Paul Sofia, the 20-year-old worker who died when the Corradino site crashed down.

The public inquiry has been tasked with looking into the way the Corradino land was transferred to the developers, Matthew Schembri and Kurt Buhagiar, and whether the state had adequate rules in place that could have prevented the tragedy.

Schembri and Buhagiar are among five people facing criminal charges in connection with Sofia’s death. They are pleading not guilty.

Initial plans to revamp existing factory

The public inquiry heard Camilleri explain that Buhagiar and Schembri had initially sought approval to revamp an existing factory to expand their furniture business, Plus Manufacturing, at a cost of €22,000.

When they were told that was not possible, they significantly expanded their plans and applied for an industrial estate site to build a new factory employing nine people, on the back of a €262,500 investment.

The witness said that Schembri and Buhagiar told Malta Enterprise that they had an established clientele and wished to expand that branch of business, venturing into bespoke furniture.

In his report to the investment committee about their application, Camilleri had written that over “the past five years, [Buhagiar] has gained vast experience and knowledge with regards to contracts and business management……[achieving] a solid relationship with a network of leading local property developers.”

That report also said that Buhagiar and Schembri had been involved in the furniture manufacturing industry since September 2018, securing “a good clientele” and were working on “a number of orders.”

Yet, Comodini Cachia noted, a reference letter from Bank of Valletta had described Buhagiar as “meter reader” while media reports referred to him as a “driver.”

The developers’ application was approved by ME on May 27, 2019.

ME not responsible for vetting construction

Asked directly by board chairman Judge Emeritus Joseph Zammit McKeon whether Malta Enterprise checked the proposed construction works, Camilleri replied that their job was to assess a project’s feasibility and applicants’ trustworthiness.

They ensured that all documents were submitted correctly, necessary references obtained, that the proposed project would generate a specific number of jobs and so forth.

Considerations about the number of storeys of the proposed building fell beyond ME’s remit, the witness explained.

Another government agency, INDIS, was responsible for identifying a suitable site for the proposed project. Different height limitations applied in different industrial estates, he added.

Camilleri noted that while references proving that the proposers had business experience were “a plus,” ME also granted approval for start-up projects to students who, having completed their studies, sought to set up their own business.

Lawyers Eve Borg Costanzi and Matthew Cutajar also represented the victim’s family.

State Advocate Chris Soler and lawyer Anthony Borg represented the State.