‘Millions from Fort Chambray transfer are my right’ – Michael Caruana

Gozitan businessman Michael Caruana insisted it was his right to transfer ‘his’ Fort Chambray concession to third parties but denied the rumoured €55 million he would receive.

“The €55 million being mentioned is just gossip from certain developers, and it’s all hogwash,” Caruana, who owns Gozo’s Hotel Calypso, told The Shift when contacted.

A resolution is to be presented in parliament today to allow Caruana to transfer parts of the project to third parties, racking in investment to complete the project.

This will result in Caruana receiving millions for the project while the government and the public whose land is being transferred get nothing. The government had the option of taking the land back when several phases of the project failed.

When The Shift asked Caruana to specify how many millions he would be making from the concession’s transfer, Caruana declined to say, insisting that it was “commercial information”.

Caruana insisted it was his right to transfer the 87-year concession he obtained from the government in 2005, as he adhered to all the concession’s obligations.

He also said that other amendments to the concession, made years later, made him the sole owner of the Fort.

Yet the parliamentary resolution to be presented today allowing Caruana to transfer the concession paints a different picture.

It states that the Knights of Malta’s fortification should have been restored and the project completed, including the construction of a hotel, in 20 years.  A number of those targets are still in the planning stage.

The resolution, to be presented to parliament today, will allow Caruana to transfer the public concession. It also states that the project has been abandoned for years and needs new owners to be completed.

Still, Caruana, better known as Il-Billi, insisted that the government had no option but to let him transfer the land.

“I am the owner of Fort Chambray, and the government only controls small parts of it, according to the 2005 contract. God forbid that the government does not allow this transfer as this would mean that all contracts signed with the government are just a piece of paper,” Caruana said.

“I do not have a never-ending amount of money, and that is why the concession allowed me to develop the project piecemeal,” he added.

Caruana disagreed when asked whether it was fair that prime real estate, once belonging to the public, would earn him millions through a government-approved transfer and the government would not receive a cent.

“The government does not own anything anymore as the property is mine. The government is not owed anything,” Caruana insisted.

According to the concession, Caruana can transfer the concession to others only with the backing of a resolution approved by parliament. If this is not approved, Caruana will be stuck with Fort Chambray.

The resolution needs a simple majority to be approved, even if the opposition members block it at the committee stage.

The government also has the option of reclaiming the concession if the obligations inserted in the contract are not met.

One of the 2005 obligations in the concession that remained unfulfilled is the building of a 100-room hotel.

Instead of opting for the possibility of repossessing the Fort, the government now wants parliament to approve its transfer from Caruana to another group of businessmen.

Although unnamed in the parliamentary resolution, they include Francesco Grima il-Gigu, Vince Borg of Bitmac known as Censu n-Nizz, Ninu Fenech and his sons of TUM Invest, Mario Gauci of Burmarrad Commercials and Oliver Brownrigg of BT Commercial.

Editorial note: The parliamentary committee meeting was postponed to next week.