Former Magic Kiosk owner ‘knowingly’ engaged in illegal behaviour during 1980s land grab

A court presided by Judge Abigail Lofaro has ordered that a special hypothec issued on land which was subject to an investigation by the Permanent Commission Against Corruption during the 1990's was to remain, but also condemned the litigants for having engaged in "illegal, immoral and behaviour which goes against public order."

The judgment handed by Judge Lofaro was reminiscent of the land corruption scandals during the 1980's, revealing a series of backroom dealings and corrupt practices by a number of persons to obtain development permits, straight from the hands of former Labour works minister Lorry Sant.

Helen Camilleri and her siblings, acting on behalf of J&C Properties Limited, had filed a suit against HSBC Bank (Malta) and Joe Pace's (ex-Magic Kiosk) Terry Ltd and STG Ltd for having used her land as special hypothec to guarantee a €230,000 overdraft.

The land in question - measuring some 7,640 square metres of pristine land along the Victoria Lines between Magħtab and Għargħur - was at the centre of an investigation by the Commission Against Corruption in 1990, which declared that Camilleri was victimised by Joseph Pace, his company Terry Limited and "other persons" by acts of corruption.

Camilleri claimed that despite the Commission's ruling, Pace had the cheek to use the same land he allegedly stole from her in 1981, and registered a general hypothec in favour of HSBC Bank, which granted him an overdraft facility of €230,000 in 1993. She called on the Courts to cancel the hypothec because the bank knew that the land in question was subjected to a ruling by the Commission Against Corruption.

In her judgement, Judge Lofaro considered that Camilleri had in fact been part of the deal back in 1981, when she had agreed to giving Joe Pace 30 plots if he managed to obtain the development permits.

The judge also took into account that in previous evidence in other court rooms, and also before the Commission Against Corruption, it was amply proven that Pace had gone to former Labour works minister Lorry Sant, obtained the permits, and immediately transferred 30 plots - valued at €70,000 - to his company Terry Limited.

It was also revealed that Pace had paid Sant €164,000 in return for the issuance of the permits.

The transfer of the plots was registered in a public deed signed on 23 October 1981 before Notary Joseph Brincat, but Camilleri had subsequently rode on the Commission's ruling that her land was usurped by Pace to fight off a hefty tax bill on the contract which she contested, by having to admit that the €70,000 was never paid to Pace, and the Notary testifying that "all what was exchanged were private written agreements".

The taxman had cancelled the bill, but Camilleri never contested the original land contract with Borg or asked to have it rescinded, leading Judge Lofaro to decree that the special hypothec in favour of HSBC Bank was to remain in place as the deed remained valid.

While keeping the hypothec in place, Judge Lofaro threw out all the litigants' arguments, rapping them all for having engaged in illicit contracts and land transfers.

"You all knew what you were up to, and what you did was illegal, immoral and against public order," the judge said.