Gaffarena loses appeal as court confirms Old Mint Street building deal illegal

Government given a few weeks to ensure the deal and all contracts involved are rescinded


The appeals court has this morning confirmed a 2018 judgement relating to what has become known as the Gaffarena Old Mint Street scandal, confirming that a deal made by the Labour government in 2015 was illegal.

In its final sentence, the court presided by Judges Giannino Caruana Demajo, Tonio Mallia and Anthony Ellul confirmed in its entirety the first ruling, declaring all the arrangements made by the government and the Gaffarenas as null and void, including all the €1.8 million given by the government in a swap for part of a Palazzo in Valletta.

The appeals court slammed the Gaffarenas for filing the appeal, stating that “they must have understood the court’s original sentence inversely”, deeming the compensation illegal.

The court ordered that following this appeal, the government has only a few weeks to make sure that the deal and all the contracts involved are rescinded.

The Old Mint Street scandal

In 2015, The Shift’s managing editor Caroline Muscat had revealed that the Lands Department, under the guidance of then parliamentary secretary (now Minister) Michael Falzon paid €1.65 million to Gaffarena for part ownership of a Palazzo in Valletta’s Old Mint street, which he had bought for a fraction of the price just weeks prior to the deal.

Apart from making a cash profit of some €650,000 in less than two months, Gaffarena, through his contacts in the Labour government, had also managed to gain several tracts of public land in a swap with the government as part of his ‘compensation’ for half of the Palazzo.

These included 25,000 square metres of land in Zebbug, 5,000 square metres at the White Rocks in Naxxar another 6000 square metres in Ta’ Kandja, Siggiewi, 10,000 square metres at Handaq in Qormi and property in Manuel Dimech Street in Sliema. Most of the land was strategically identified to enhance the value of Gaffarena’s existing properties, some built illegally.

Political impunity

The deal now deemed illegal included the involvement of Clint Scerri – a canvasser of Michael Falzon and his person of trust with direct links to Castille. No one has ever taken political responsibility for the scandal.

Following public pressure, disgraced former prime minister Joseph Muscat was forced to admit irregularities in the whole deal and started a court case to rescind the illegal deal in its entirety.

At the same time, he put all the blame on then Parliamentary Secretary Michael Falzon, who was forced to resign.

Only a few months later, the same prime minister (Joseph Muscat) re-admitted Falzon back into his cabinet, this time promoting him to minister.

Falzon has been re-confirmed in his seat by current Prime Minister Robert Abela.


Newest Most Voted
Inline Feedbacks
View all comments
8 months ago

Same players, same modus operandi and still the cloak of impunity protects them all.

What does it take to bring a successful prosecution here?

8 months ago

Malta has become a cesspit; what floats in it are our politicians and their hangers on

Joseph Ellul Grech
7 months ago
Reply to  gadflyg

Malta has been a cesspit of political corruption for many years. It has now graduated to a deeper cesspit pit than it ever was.

Astrid Vella
Astrid Vella
8 months ago

Where does this leave the other properties that were handed over to him? The valuable corner house is in the process of being largely redeveloped by Gaffarena, despite being in the Urban Conservation Area.

Last edited 8 months ago by Astrid Vella
7 months ago

Pure Mafiosi.

Noel Ciantar
Noel Ciantar
7 months ago

Thankfully, some dark episodes of the disgraced Joseph Mvscat legacy are coming undone.

Unfortunately, some others, like the assassination of Daphne Caruana Galizia, which happened on his watch, cannot be reversed.

One would have thought the country learned its lessons, but so far the polls suggest that the public hasn’t been shocked enough with the excesses of the Labour Party-State.

Related Stories

Gzira PL mayor slams government agencies over scandalous fuel station relocation
Labour Gzira Mayor Conrad Borg Manche’, who also serves
The rallying cry from the Burmarrad washroom does not

Our Awards and Media Partners

Award logo Award logo Award logo