Illnesses and inquiries forcing new Cabinet options for Muscat

In his recent visit to MaltaToday’s offices, Prime Minister Joseph Muscat ruled out a Cabinet reshuffle in the foreseeable future, however his hand might be forced by circumstances he has no control over.

The first change could be triggered by the controversy surrounding planning parliamentary secretary Michael Falzon and the expropriation of a Valletta building.

MaltaToday understands that the Internal Audit and Investigations Department (IAID) report on the government’s expropriation of a Valletta property partly owned by Marco Gaffarena has been finalised and the government is waiting for a parallel investigation by the Auditor General to be concluded before announcing any decision.

It appears that the conclusions reached by IAID will lead to the Prime Minister reclaiming the public assets given to Gaffarena, which would make Falzon’s position untenable. MaltaToday is also informed that apart from reclaiming the eight parcels of land transferred to Gaffarena, the Prime Minister is tempted to pilot a thorough reform of the maligned Lands Department.

For years, the Lands Department was plagued by scarce investment which has in turn led it to be a largely inefficient and unaccountable unit. One of the options under consideration is that of creating a new agency, which would theoretically reduce political interference. In June, the government ordered two separate inquiries into the controversial expropriation deal in which Gaffarena was paid €1.65 million for half the ownership of a property in Old Mint Street, Valletta.

The property at the centre of the controversy houses the government offices of the Building Industry Consultative Council.

In January this year, the government paid Gaffarena €822,500 for a quarter of the property that he had bought in December 2007. A month later, Gaffarena bought another quarter of the property for €139,762, which the government subsequently expropriated for another €822,500 in April.

In June, MaltaToday reported that inside information from a highly-placed official in the Government Property Division helped identify lands that Marco Gaffarena needed for his own personal and business interests. A member of Falzon’s secretariat – Clint Scerri – could also not explain to this newspaper why he had accompanied Gaffarena personally to the Government Property Division.

Opposition leader Simon Busuttil insisted that Falzon’s resignation was “inevitable”, but while the junior minister has ferociously denied any wrongdoing, Muscat has insisted that he will only take action once the investigations are concluded.

The Prime Minister has likewise denied that anybody from his office has been implicated in the expropriation deal, but pledged that he would not cover up for anyone. Defending his decision to call for an IAID investigation before taking a decision, Muscat said the inquiry would “expand the investigations and ensure further transparency.”

District blues

If Muscat decides to reclaim the land given to Gaffarena and Falzon is held politically responsible, this could shift the balance on the ninth and tenth electoral districts. Falzon’s removal from the cabinet could pave the way for a comeback by former home affairs minister Manuel Mallia, who was sacked in December 2014 following a shooting incident involving his driver.

Following the embarrassing events which led to his sacking, Mallia has quietly strengthened his position in his constituencies and Falzon’s political demise could place the criminal lawyer in a strong position in the run-up to the 2018 election. The other two Labour MPs elected from the two districts are veteran ministers Leo Brincat and Evarist Bartolo.

Possible vacancies

Although Muscat might have no desire to change his ministerial Cabinet, the health condition of two senior ministers could compel him into reshuffling his cards. D e p u t y Prime Minister Louis Grech is still battling an illness while on Friday 73-year-old foreign affairs minister George Vella underwent cardiac bypass surgery.

If Grech’s health situation persists Muscat may have to consider replacing the 68-year-old, who occupies the role of minister for European affairs.

On the other hand, the foreign minister’s health condition could impede him from fulfilling his ministerial duties, which include frequent trips abroad. Moreover, former health minister Godfrey Farrugia will be undergoing surgery in the UK after being diagnosed with an aggressive prostate cancer.

Although Farrugia no longer occupies a ministerial post, his health conditions narrow down Muscat’s options in an eventual Cabinet reshuffle.

Despite having 39 MPs to choose from, the large Cabinet and the scarce talent within his parliamentary group do not leave Muscat much space for manoeuvre. While Muscat could consider taking over the responsibility of any vacant portfolios, a possible candidate for a ministerial post from Labour’s backbench is Deborah Schembri, who enjoys the Prime Minister’s trust and is seen as a suitable substitute.

Another option would be that of promoting the ambitious parliamentary secretary Ian Borg who already works within Grech’s ministry and is e x p e c t e d to play an important role during Malta’s EU presidency in two years’ time.