Alex Borg Demands Public Inquiry Into Fortina Land Deal After Damning NAO Report

Opposition leader Alex Borg has called for a public inquiry and a police investigation into the transfer of public land to the Fortina Hotel, after the Auditor General found serious shortcomings in the deal.

Speaking in an urgent parliamentary debate on Monday, Borg said the NAO confirmed that the land had been undervalued and that documents had even been hidden from parliament. He insisted this case strikes at the heart of accountability, saying public land must be valued in the national interest and not handed over at a loss.

The Speaker had initially ruled that the debate was not urgent, but the government later agreed to hold it. Culture and Lands Minister Owen Bonnici defended the government, saying the report showed politicians had been misled by officials at the Lands Authority. He pointed to reforms introduced since, including a new chairperson and CEO, improved valuation methods, and stronger checks. Deputy Prime Minister Ian Borg said decisions had been taken on the recommendations of the authority’s chair, insisting there had been no political interference.

Opposition MPs rejected this argument, saying ministers could not shirk responsibility. Adrian Delia noted that experts had valued the deal at €21 million, while the government received just €8.1 million. Claudette Buttigieg said €16 million had been stolen from the public, while Rebekah Borg demanded to know what would become of the funds.

The Nationalist Party accused Labour of “yet another theft,” saying the land was transferred “for a third of its value, behind everyone’s back.” The Labour Party dismissed Alex Borg’s intervention as a stunt, accusing him of being “more of the same” as his predecessors.

Independent politician Arnold Cassola described the findings as scandalous, recalling that he had requested an NAO investigation more than four years ago. He accused former Prime Minister Joseph Muscat and his ex-chief of staff Keith Schembri of manoeuvring to favour Fortina’s interests, and said both should be investigated.

In a reaction on Monday, Fortina acknowledged the publication of the report, noting that it spans more than 200 pages and took the NAO over four years to compile. The company said it would take the necessary time to thoroughly review the findings before issuing a detailed response, but denied any insinuations made against it. “Fortina remains committed to transparency and will provide appropriate responses following our comprehensive review of the document,” the statement read.

Schembri also issued a statement, categorically denying the allegations made against him and calling the Times of Malta’s coverage unfair. He insisted that he never suppressed or concealed any valuation, saying the commissioning of valuations and the final decisions were the responsibility of the Lands Authority and parliament. He argued that the difference between the €8.1 million and €21 million figures was not a matter of suppression but of valuation methods, with the government relying on a 2017 report and the NAO using 2019 figures for the entire site.