Comments on: Why the government’s deal with Silvio Debono is corrupt

By: Daphne Caruana Galizia

Daphne Caruana Galizia — Tue, 07 Mar 2017 22:32:00 +0000

You worried about looking weak? You should be worrying about all the spokes in the wheels from within, the lack of cooperation, and the real risk of sabotage.

By: Tony A Zammit

Tony A Zammit — Tue, 07 Mar 2017 22:07:00 +0000

We need to have assurances from the party that these crooked deals will be ALL rescinded. A contract is a contract unless it’s crooked.

By: Robert

Robert — Tue, 07 Mar 2017 20:37:00 +0000

We are saying the same thing. But remember at the end of the day the people will always get the government they deserve.

By: Just ice

Just ice — Tue, 07 Mar 2017 14:20:00 +0000

In reply to Tennis Racket. Since when do Deloitte act as property surveyors ?

By: Batman

Batman — Tue, 07 Mar 2017 14:12:00 +0000

In reply to Francis X Darmanin.

Deloitte are very well positioned to assess the value of the land. In the absence of similar deals, which as we know in Malta are very limited, the value of the land is actually the value of profits that such project can generate.

This means that the best way to come up with a range of values is to estimate the cost to build the project, estimate the revenue streams (Deloitte have enough information to do this) and discount these net cash flows to today’s values.

Daphne, you mentioned that Deloitte assed the value of the land but not the terms of payment. A discounted cash flow exercise requires terms of payment to be able to arrive at the value. If the terms of payment are different to what they have taken into their model, then the value would also be different.

I wonder whether this could be challenged? Are the terms of payment better than those taken by Deloitte?

By: Tabatha_White

Tabatha_White — Tue, 07 Mar 2017 12:51:00 +0000

There is the assumption there that the asset is changing title ethically and legally, which is not the case with the public land in question.

I’m sure most people are “willing” and “able” to prove arm’s length, on paper, in most cases. “Prudence”, in this case equates to plying both the supposed Opposition and the Taxman to view the exchange favourably.

The context is paramount and specific exchange or sale category and listed status should be listed firmly on every cadastral extract according to assigned class, not left to the whim of one man – ultimately. Change of class, abroad, takes years and certainly longer than one administration to enact.

In this case, and your example is perfect for the refinement of terminology required in this regard, “arm’s length,” “prudence” and “responsibility” are not even relative or debatable: they are non-existent.

You will find, on cadastral extracts abroad, that described use and conditions governing public land is so stipulated and change of use is never subject to the whims of one person.

By: rita farrugia

rita farrugia — Tue, 07 Mar 2017 12:16:00 +0000

If Demarco doesn’t resign, just ignore his name on polling day.

By: Daphne Caruana Galizia

Daphne Caruana Galizia — Tue, 07 Mar 2017 11:07:00 +0000

I think you’ll find that it’s because the Electrogas Malta and DB San Gorg Property contractual deals may have been devised by the same hand.

‘Guido Demarco & Associates’ are the lawyers for Silvio Debono and his St George’s Bay deal, and George Hyzler, Mario Demarco’s sister’s husband, is the lawyer for Electrogas Malta.

By: Silvan Said

Silvan Said — Tue, 07 Mar 2017 10:59:00 +0000

It’s the same model as the power station deal. The so-called investors are bankrolled by the government which guarantees that it will buy their product for 18 years. The same model was also used for the public hospitals and ‘Vitals Global Healthcare’. Seems to be the same “mastermind” behind them all.

By: Gidmejmun

Gidmejmun — Tue, 07 Mar 2017 09:30:00 +0000

In reply to Francis X Darmanin. Qabilhom laħqu periti s-sensala. Ġieli ġew appuntati periti mill-Qorti biex jistmaw valur to propjetà. Malta qegħdin.