[WATCH] GWU lease of Valletta office to ARMS breaches public contract

GWU rental of offices to ARMS breaches public contract • Video Ray Attard

Shadow minister for justice Jason Azzopardi has demanded answers over the rental of the General Workers Union headquarters building in Old Bakery Street, Valletta, to Enemalta’s and WSC’s billing company ARMS (Automated Revenue Management Service).

Azzopardi said that in 1997, the General Workers Union accepted that the offices be leased to it from the Lands Department on condition that the GWU would own 51% of the company.

ARMS is owned by government’s energy and water corporations.

Azzopardi questioned why the Lands Department, which falls under the remit of the Office of the Prime Minister, accepted such a transaction.

“Since the department falls under the OPM, it cannot be that the Prime Minister is unaware of the situation,” Azzopardi said.

MaltaToday first reported in May 2014 that the ARMS was looking into the possibility of opening an office in Valletta and renting out the space currently owned and occupied by a General Workers Union subsidiary.

Currently, ARMS’s offices are located in Gattard House, Blata l-Bajda, but the company is in the process of opening a number of regional offices, including Valletta.

Last year, energy minister Konrad Mizzi announced that government intended to open two ARMS regional offices by 2014, one in the north and the other in the south of the island. This, Mizzi said, would improve the billing company’s efficiency.

The offices of Untours, which form part of the GWU’s central building in the capital city, would offer an accessible space in a central location.

In a reaction, the General Workers Union said that businesses deals carried out with public entities took place following a public call during which the GWU submitted its offers. It said that the more favourable bids were chosen.

“When it attacks the GWU for taking part in public calls, the PN shows a lack of objectivity,” it said in a statement.

“Not only is the GWU the biggest trade union in Malta, but along the years it invested in a number of commercial projects that support around 160 families. These investments support the work of the trade union in the sole interest of its members.”

The GWU said the PN repeatedly attacked its commercial interests to weaken its position in defending the rights of the workers. Among its attacks, the union added, the PN had prohibited the union from continuing to operate the Cargo Handling, cutting an important source of income: “At the same time, the Nationalist government had rented out a building belonging to the UHM. The PN’s position is inconsistent and it does not think twice of applying two weights two measures when trade unions are involved.”

The union said despite promises by the PN leader to work “hand in hand” with the union, facts show otherwise. “The PN holds ill will against the GWU and the workers registered with it. Despite a change in leadership and promises of ‘renewal’, facts show that nothing has changed.”

The GWU said it will continue working to safeguard the interests of its workers and members. It said that, while the union was in constant and constructive dialogue with the Enemalta workers, decisions taken by the Nationalist government had made several workers at the Sea Malta, Selmun and Interprint redundant while the Dockyards and the Shipbuilding were shut down.

GWU’s €1.16 million acquisition

Transport Malta is also considering the relocation of its headquarters to a section of the A3 Towers in Paola, owned by another GWU subsidiary, Paola Estates.

Paola Estates are the preferred bidders in the expression of interest TM issued for the rental of new office space.

The A3 Towers were constructed by the Montebello brothers’ JPM Bros, the company that had also acquired the defunct Jerma Palace Hotel in Marsascala, as well as having developed the Mistra Heights complex in Xemxija before selling off their interest.

Paola Estates are a wholly-owned subsidiary of GWU Holdings Ltd, whose directors are union secretary-general Tony Zarb and president Victor Carachi. In 2007, the company held some €2 million in assets.

In 2010, the GWU company purchased 1,800 square metres of basement garage spaces for €302,818 at the A3 Towers, and the ground floor’s showroom, cafeteria, and the first floor’s showroom and second-floor ‘mini market and pharmacy clinic’ for €1.16 million; and then another 35 underlying garages for €285,349 in 2012.

Altogether, the GWU purchased the basement levels and first two floors of the Montebello’s A3 Towers for €1.74 million.