March 14, 2023, Independent Candidate Arnold Cassola in a press release stated :
“With regards to the happenings at Smart City the Government is blatantly in breach of EU legislation and nobody is taking note.
This is public land. The people’s asset and the government should not dispose of as it deems fit in an illicit way.
In recent months, with the manoeuvres related to taking back the land in Zonqor and giving land within the area of Smart City to the AUM, the Government is in a new agreement with Smart City which sees the original public deed signed in 2007 and which expired on 2021 with Smart City not honoring obligations and subtly renewed hush hush. Something which nobody seems to have noticed ..
With the recent new agreement, amending the original contract of the 22nd April 2007, the Government is in breach of the European Union legislation to which the Government of Malta is subject, as well as all the legal entities operating in within the EU.
The rules laid down by the European Union on the subject of public tenders and in particular for any form of public concession, such as the one referred to in the contract in question, granted by the Maltese Government in favour of private economic entities, whether of Maltese nationality, EU nationality or non-EU nationality, are very clear.
The amendments that have been made to the original contract substantially modify its content and, therefore, constitute a new and different agreement and, therefore, circumventing the EU rules of entrusting the concession of the emphyteusis right, through a public evidence procedure (Court of Justice of the European Union, Italian Lotteries case, judgment of the 2nd September 2021 in joined cases C 721/19 and C 722/19; Court of Justice of the European Union, Italian Republic v Commission, case C- 526/17 of 18 September 2019)
The original contract provided for a very precise rule as to the time of completion of the area and the number of employees gainfully engaged in the area. Nothing has been adhered to.
Precise prerogatives characterised the contract, in the sense that the Maltese Government had provided for a series of sanctions up to the termination of the contract itself if Smart City Malta Ltd did not operate according to the agreed terms, also taking into account the very low value of the annual sub-emphyteusis fee owed by SCM in favour of the Maltese Government, which was entirely symbolic. LM65,000.
The original contract provided that by April 2021 at least 80% of the planned construction should have been completed, under penalty of forfeiture of the contract. By that date this condition had not been adhered to since less than 20% had been built,
With this new contract, under the Robert Abela administration, in a totally illegitimate manner and in violation of European Union law, Government does not intend to terminate the original contract, removing the concessionaire (SCM Ltd) that has acted in blatant violation of the original contract, proceeding to a new assignment through a new tender, but has modified the original contract with the same company SCM Ltd.
The European Union’s regulatory provisions impose the utmost transparency on the part of the Government in the awarding of contracts for the execution of works in the public interest.
Smart City Malta Lt is a Private company, albeit partly participated by the government in a minority shareholding. Why should it have the luxury of getting such a vast piece of land with an approved masterplan, a land which it is simply and entirely speculating upon? Any Maltese startup company can do that. Why has Smart City Malta Ltd not been kicked out and the area returned to the Government to do as it may deem fit, possibly issuing a tender for the development thereof within the masterplan?
When the original deed of Emphyteusis was signed under minister Austin Gatt Malta was not in the EU, but now we are and we should adhere to the EU rules and regulations.
As things stand, the Robert Abela government modifications to the original concession at Smart City not only constitute a clear breach of EU law but constitute also a blatant heist of Maltese public land.” ended Cassola.
