PM, Archbishop ‘inaugurated’ Polidano offices when permit was invalid

When Polidano’s offices at Hal Farrug were inaugurated by Prime Minister Robert Abela and blessed by Archbishop Charles Scicluna in June 2023, the Planning Authority had already announced the permit was invalid and that no development could occur on the site.

The permit given to Polidano (ic-Caqnu) in 2010 was conditional on the implementation of planning requirements.  The company had five years to implement those changes, and nothing had been done.

The Authority made clear that failure to comply would render the permit void.

Those five years came and went without the conditions being fulfilled. By its own wording, the permit expired at the end of the validity period, leaving the development without a legal basis. In fact, the PA confirmed publicly that “no development can occur on that permit”.

The PA stated: “This development permission is valid for a period of FIVE YEARS from the date of publication of the decision in the press but will cease to be valid if the development is not completed by the end of this validity period.”

The Authority listed five pages of conditions that essentially force Polidano to fall in line with the law and stop any further illegal development. These are conditions that any development application should meet, but which ic-Caqnu ignored.

When the ‘inauguration’ ceremony with the Prime Minister and the Archbishop occurred in 2023, an analysis by The Shift showed that Polidano was still facing 40 ongoing cases by different government entities, apart from cases filed by individuals.

These included 11 pending cases instituted by the Commissioner for Inland Revenue, asking ic-Caqnu to pay his taxes, including income and VAT dues; 25 cases instituted by the Planning Authority on various construction illegalities, and another one by the Lands Authority for the illegal occupation of public land.

These cases are just the tip of the iceberg since Ċaqnu has been involved in a number of other court cases against government entities for many years, some settled, some lost, and others appealed.

According to media reports, following legal action by the taxman and threats of blacklisting from government projects, Polidano paid some €20 million – half of what is owed, as different administrations had allowed Polidano to accumulate some €40 million in taxes due over the years.

Despite this background, the June 2023 inauguration proceeded with the highest levels of political and ecclesiastical endorsement.

Prime Minister Abela attended in person, speaking warmly of Polidano’s efforts to resolve outstanding fiscal issues.

In Abela’s words, the ceremony was a “show of confidence” in a businessman who had settled, or indicated plans to settle, some of his tax arrears.

The country’s leader appeared to be signalling gratitude simply for an attempt at compliance, rather than for full adherence to legal or fiscal responsibilities. Meanwhile, Archbishop Scicluna’s presence lent a blessing of moral legitimacy to a development which the Planning Authority had already deemed unlawful.

Without any hint of irony, Robert Abela said at the ‘inauguration’ that the government felt it should reciprocate with a sign of confidence in those who were prepared to invest in the country, particularly in the context of the government’s environmental priorities.

He added: “Enforcement creates a level playing field between competitors.”

Yet if the state’s highest offices are willing to celebrate a development stripped of its legal permit, what credibility remains in the enforcement process?

The Planning Authority had already sanctioned a number of illegalities on site, as Polidano, true to nature, went ahead and built a mega complex at Montekristo Estates without the necessary permits.

For Polidano, the ‘inauguration’ marked another chapter in a career defined by confrontation with regulators, offset by enduring political connections.

For the government, it risks being remembered less as a “sign of confidence” in investment than as an emblem of inconsistency: a day when the state’s leaders lent their presence to an event that, by the PA’s own account, should never have taken place.