When Stefan Vassallo spoke out about his financial ruin as a result of government bureaucracy, he did not expect newly elected Prime Minister Joseph Muscat to call him up about it.

In fact, he believed the call on a Sunday morning in 2013 was a joke.

“I had come to The Sunday Times of Malta with my story at a time when I was financially ruined because of government bureaucracy. Within a few hours, Dr Muscat was on the phone telling me I would be getting help because what happened to me was not just.

“And yet, here we are, seven years down the line, and I am still waiting for the money I was promised,” Mr Vassallo said, in his final appeal to Dr Muscat before he steps down on Monday.

The restaurateur’s struggles started in 2011, just four years after winning a bid for a 15-year lease for two vaults by the Greek Gate in Mdina in 2007.

After winning the bid, Mr Vassallo  invested some €200,000 of his own money to renovate the vaults into an artisan culinary centre he called Maħzen XII.

As business started to bloom, Mr Vassallo – who had in the past successfully set up a number of popular outlets, including Żmerc pub in Balzan and Veċċja in St Paul’s Bay – started facing various obstacles.

While his project fit in perfectly with the official policies for the silent city, his request for a permit to open up the culinary space was turned down.

Instead, after being made to go through hoops, Mr Vassallo was handed a snack bar licence. This meant he could not prepare any food on the premises but was only allowed to serve snacks.

“I had large groups, both locals and tourists, coming to my place. It was doing very well but I could not serve any fresh food. They wanted me to sell pre-packaged snacks instead of fresh ravioli I was making on site as patrons looked on,” Mr Vassallo said.

I just want what’s owed to me

As he struggled to continue with operations despite being subject to regular spot checks by the authorities, he forged ahead, even earning a mention on Lonely Planet’s Mdina guide.

But in May 2011, only a year after opening up, he was issued with a notice stating he had to clear the premises within a matter of months for restoration works, which would last one-and-a-half years.

The restoration of the bastions involved the digging of a massive trench along the road in front of Mr Vassallo’s bar as well as extensive excavation and structural work within his actual premises.

The call

Soon after the story appeared in The Sunday Times of Malta, the Office of the Prime Minister contacted Mr Vassallo, who says he spoke with Prime Minister Joseph Muscat directly.

Soon after, Mr Vassallo met with government officials at Castille in order to discuss his case.

“I was very hopeful at the time. They really did seem to care about my situation and even made me draw up a report on the expenses I had incurred and also to work out how much business I had lost as a result of the bastion works.

“I told them immediately that I had not voted Labour in the previous election and they laughed. I really did believe they would help,” Mr Vassallo said.

Seven years on, Mr Vassallo is still waiting. Photo: Chris Sant FournierSeven years on, Mr Vassallo is still waiting. Photo: Chris Sant Fournier

The restauranteur said he also had a meeting with then-parliamentary secretary for planning Michael Farrugia, who urged him to speak to principal permanent secretary Mario Cutajar.

An internal letter on the matter, seen by Times of Malta, was sent by the Government Property Department to Mr Cutajar, as well as to Dr Farrugia, then-culture and local council parliamentary secretary José Herrera, then-tourism ministry permanent secretary Joe Borg and the policy coordinator at the time, Alex Muscat.

The letter recommended that Mr Vassallo should not pay rent for the duration of the restoration works and that any arrears due should be paid for by the ministry responsible for the restoration. The letter also stated that the lease period should be applicable as from when the restoration is completed. Mr Vassallo was to be reimbursed for the restoration works he carried out on the property while he was also to be given compensation for the time his bar was closed because of the bastion renovation.

“I was promised €176,000 for the investment I had made and a further €435,000 over loss of business. But of this, I only received €37,000. They came up with all sorts of reasons and excuses as to why they wouldn’t give me the full amount,” Mr Vassallo said.

He also attempted to sell the property twice, however, the sale had to be dropped because he could not get the clearance needed from the Lands Authority.

Questions sent to the authority this week remained unanswered by the time of writing.

Maħzen XII. Photo: Chris Sant FournierMaħzen XII. Photo: Chris Sant Fournier

Separate questions sent to Dr Farrugia about his meeting with Mr Vassallo were directed to the Lands Authority.

“The minister has not been responsible for the  Lands Department/Authority for six years,” a spokeswoman said.

When it was pointed out that the matter occurred when such issues still fell within his remit, the spokeswoman said she was informed the case had happened before 2013.

No further replies were forthcoming after Times of Malta referred to the internal letter which was also sent to Dr Farrugia in November 2013.

“I just want what’s owed to me. It seems like I am being singled out and even though all these people had told me I was right, they did nothing,” Mr Vassallo said, saying he wanted his message to reach Dr Muscat before he stepped down.

He said he hoped whoever took over, be it Health Minister Chris Fearne or backbencher Robert Abela, would take his case more seriously than his predecessor.

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