Minister overrules Lands Authority chairman in clash with new CEO

The chairperson of the Lands Authority has clashed with incoming CEO James Piscopo in a ‘power struggle’ that was resolved in Piscopo’s favour by Transport Minister Ian Borg.

The matter reached the government executive soon after Judge Lino Farrugia Sacco, who chairs the LA’s board of governors, wrote to all the authority’s staff protesting a decision by Piscopo to streamline decision-making procedures.

MaltaToday is informed that Farrugia Sacco was referring to a decision by Piscopo to delegate minor and administrative decisions, such as the renewal of agricultural leases, to LA personnel and chief officers.

Since its overhaul, the LA’s board of governors has delegated its own members to preside over additional committees to take decisions on the LA’s day-to-day affairs, which also means paying them hourly rates in addition to their annual honorarium.

But Piscopo was said to have informed the board that minor and administrative decisions will be taken by designated LA staff, in a bid to reduce red tape.

On Tuesday however, Farrugia Sacco informed all staff that the CEO’s decision had “not been approved by the board” even though the board of governors, an oversight body that includes two representatives from the government and Opposition benches, only meets on Friday.

The matter was instantly brought to the attention of the minister and parliamentary secretary Chris Agius, who having heard Farrugia Sacco on the matter, proceeded to weigh in favour of Piscopo’s decision.

A senior official who spoke to MaltaToday said that Borg issued a written instruction to the board of governors that the CEO was to be allowed to change internal procedures.

Piscopo instantly followed up on the decision by sending a communication to staff, referencing the written instruction.

This was the first week for Piscopo at the newly-reformed LA, after running Transport Malta for five years.

The new regulator was set up to replace the Lands Department in the wake of the Gaffarena scandal, which involved the transfer of a property in Valletta and led to the resignation of then planning parliamentary secretary Michael Falzon in 2016. A new board of governors was created to perform the functions previously assigned to the Commissioner of Lands, as well as land acquisitions and expropriations. However the executive conduct of the LA, including its administration and control of its directorates, falls under the responsibility of the CEO.

Judge Lino Farrugia Sacco was given a €30,000 package as the first chairman of the Lands Authority – a salary of €18,000 and an annual allowance of €12,000. Farrugia Sacco retired from the Bench in August 2014.

The regulator’s first chief executive officer is Carlo Mifsud, a former Labour Party candidate, but stepped down earlier this year, ostensibly over having had his role hindered by the overweening power of the board of governors.

Mifsud was chosen by an independent panel while Piscopo was also interviewed for the role of CEO. At TM, Piscopo earned a salary of over €85,000 as executive chairman.