Marsa ‘inferno’ scrapyard remains in place despite 2021 Court eviction order – ERA still issued permit

A hazardous scrapyard in Marsa at the centre of one of Malta’s largest industrial fires remains in operation more than four years after a court ordered its eviction, raising questions about regulatory enforcement, political influence and government oversight.

Jac Steel, the operator of the Marsa scrapyard that residents and government officials have repeatedly described as an environmental hazard, was ordered by a court in 2021 to vacate the site after it was found to be occupying public land illegally.

Yet the company continues to operate from the premises, despite two major fires since the ruling and mounting concerns about public safety.

Documents reviewed by The Shift show that the Environment and Resources Authority (ERA), Malta’s government-controlled regulator, issued Jac Steel with a new operating permit in 2023 – two years after the eviction order was handed down.

The scrapyard is owned by Conrad Baldacchino and Oracle Investments Ltd, directed by Audrey Testaferrata de Noto, an architect better known locally as “Perit Audrey” and a Labour Party candidate.

The company was granted use of the public land in 2014, shortly after Labour returned to power, under a 10-year lease agreement administered by INDIS, the state agency responsible for industrial estates.

According to court records, INDIS began eviction proceedings after the government received repeated reports of abuse and environmental breaches at the site, including fines for regulatory infringements. In 2021, the court ruled in favour of INDIS, ordering Jac Steel to vacate the premises and clear the land.

Days after the judgment was delivered, a major fire broke out at the scrapyard, sending plumes of hazardous smoke across southern Malta and requiring hours of firefighting efforts. The incident complicated efforts to enforce the eviction, with contamination and safety concerns cited as obstacles to repossessing the land.

Despite the ruling, operations resumed.

In November last year, a second major fire occurred, again prompting public alarm. INDIS subsequently renewed its efforts to regain control of the site, but Jac Steel sought a prohibitory injunction to prevent the agency from sealing off the premises. The court dismissed the claim.

Still, INDIS has yet to physically repossess the land.

Responding to questions about why the eviction has not been enforced, INDIS cited “significant legal and practical challenges”.

A spokesperson said the 2021 fire prevented the agency from immediately taking possession of the site or assessing damage due to contamination.

“As a consequence of the fire and the resulting contamination of property under INDIS’s responsibility, it was not possible to quantify the damages at that stage,” the agency said.

INDIS subsequently initiated a separate civil case, which remains pending before the Rent Regulation Board, and secured a precautionary garnishee order of €500,000, deposited in court.

INDIS added that Jac Steel had contested the warrant of ejectment in an attempt to delay the eviction, but that challenge was dismissed.

“The necessary eviction procedures are currently ongoing on the basis of the 2021 judgment,” the agency said, noting that enforcement continues to be hindered by the presence of burnt and potentially contaminated material on site.

The continued operation of the scrapyard – and the issuance of a new environmental permit despite a standing eviction order – has intensified scrutiny of how Malta’s regulatory bodies enforce court decisions involving politically connected operators.