Government rents building from Gonzi’s former employer for €3.75 million

The government will be paying almost €4 million to the Prime Minister's former employers to rent a building in Blata l-Bajda.

Following a parliamentary question tabled by Labour MP Helena Dalli, it has emerged that the government is leasing Mizzi House in Blata l-Bajda to house the Malta Competition and Consumer Affairs Authority for at least €300,000 per year. 

The 10-year lease the government signed in October 2011 with Mizzi Estates Limited stipulates that the government will pay €300,000 per annum for the first two years rising to 427,000 in 2021.  

Apart from the building known as Mizzi House, the government will be leasing a garage "which can accommodate 30 medium-sized saloon cars" for an initial €18,000 yearly.

Over the 10-year period, the government will be paying €3.55 million to lease the main building and an additional €207,500 to lease the garage.

Asked by MaltaToday whether any public call for expression of interest was issued before Mizzi House was selected, the ministry for Fair Competition and Consumers said "the usual Public Sector procedure was followed", and confirmed that a public call for an Expression of Interest was issued.

The contract also stipulates that rent is exclusive of VAT and the government will pay any VAT or other taxes due to Mizzi Estates Limited.

Mizzi House belongs to the Mizzi Organisation, which holds various business interests including automotive; tourism and leisure; manufacturing; services; real estate and mechanical and engineering contracting.

Before entering the political scene, Prime Minister Lawrence Gonzi was the company lawyer of the Mizzi Organisation, for whom he also served as Group Chairman between 1989 and 1997.

In the Expression of Interest issued in June 2011, the MCCAA said it was looking for a building with a total office area of at least 2,200 square metres, located in a central area (Sta Venera, Mrieħel, Hamrun, Blata-l-Bajda, G'Manġia, Msida or Marsa).

The document also stated that the authority was looking at leasing a property for a 10-year period, with an option to renew for a further ten-year period.