Labour demands action on ‘political decision’ behind €400,000 expropriation

The Labour Party has demanded that Simon Busuttil take action on the “political decisions” behind the payment of €400,000 in compensation for a piece of land valued at just €60,000.

On Sunday, MaltaToday revealed that a €60,000 countryside passage in Mtahleb that was expropriated for road formation back in 1974 returned €400,000 in compensation to its original owner just four years ago. The land in question belonged to entrepreneur Emanuel Peresso, CEO of the Michele Peresso Group of Companies, who received €400,000 cash even though the-then Director General of the Lands Department, Albert Mamo, estimated it at just €60,000 as this was within an outside development zone.

“A piece of land which was valued at €60,000 by Lands Commissioner Albert Mamo resulted in the payment of €400,000 in compensation, nearly seven times the official valuation by the Lands Department,” the Labour Party said.

A thread of emails between Albert Mamo and former minister for lands Jason Azzopardi showed how a new valuation was sought. This increased the value of the property to €140,000, more than double the initial valuation. However, Peresso insisted that the price was €400,000, and that as a last resort he was offered a building plot worth €360,000 – only for the entrepreneur to refuse because he required cash as one of his business deals had failed.

A fortnight later, Peresso wrote to the assistant director at the Government Property Director, Margaret Falzon, copied to Lawrence Gonzi saying: “The Prime Minister had confirmed to us that the Lands Department has issued another valuation of our taken land at Mtahleb … this new valuation amounts to €140,000 plus damages and interest, from 1974 to date.”

“It is clear from the emails that the hike in the price was the result of a political decision,” the Labour Party said.

By 2012, Peresso had been paid what he apparently had requested. A notarial contract confirms tat he was paid €404,020. The valuation was hiked up to €206,000 – almost four times from its original value – and an extra €198,000 topped up in the form of damages and interest.

Consequently, the Labour Party said PN leader Simon Busuttil should walk the talk on political honesty and clean politics by saying what action will he be taking against Jason Azzopardi.