Watch: Stagno Navarra Says Government Got Good Deal For Fortina Land Reuse
Karl Stagno Navarra said the government actually benefitted through the Fortina land deal in Tigne as it gained €8 million for land that had already been leased out to the private company.
“The PN is claiming that there was wrongdoing because the National Audit Office disagreed with the valuation of the land,” the journalist said. “What the PN never says is that Fortina already owned the concession for around 99 years.”
“All it did was pay the government compensation to remove a clause in the original lease which specified that the land had to only be used for tourism purposes.”
Besides a revamped hotel, the site in Tigne now also includes a commercial space and residential apartments.
The NAO said that Fortina underpaid for this deal and that former Lands Authority chairman Lino Farrugia Sacco concealed a report which valued it at €21 million.
However, Stagno Navarra argued that the government benefitted as it earned an extra €8 million for land that had already been leased to a private company.
“Fortina invested several millions to rebuild their hotel and add a residential part,” he said. “The government benefitted because Fortina paid for the renegotiation of a lease that had already been granted to them.”
With regards to arguments on valuation, Stagno Navarra said it is all subjective, stating that a Big 4 audit firm had originally valued the land at €2 million.
Cover photos: Left: Karl Stagno Navarra (Photo: Karl Stagno Navarra), Right: The Fortina Development (Photo: Fortina Investments)
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