New ‘vote-buying scheme’ launched extending public land concessions

All those occupying government property irregularly through an expired concession, whether residential, agricultural or commercial, are to be given a chance to regularise their position and have their concession extended by a further 50 years without the need for a public tender or a competitive process, The Shift can reveal.

In what is being described by Lands Authority insiders as the latest ‘vote-buying’ scheme, in which the government will be currying favour to hundreds, possibly thousands, of tenants, those recognised as title holders will have the opportunity to regularise their position over the next three years, through a simple application to be approved by the Lands Authority.

The rules of this new scheme were published by Lands Minister Silvio Schembri a few weeks ago through a new legal notice, just after parliament rose for the summer recess.

Sources at the Lands Authority told The Shift that the scheme has been ‘informally promised’ to individuals occupying public land irregularly for many years and is now being implemented on the direct instructions of the prime minister in an attempt to bring back to the fold disgruntled voters and their families.

According to law, all those with an expired concession should have returned the keys to the Lands Authority. If not, the Authority should have started procedures to repossess the property and release it again through a public tender, offering the possibility to all those interested in bidding for public property in a competitive exercise.

However, over the last few years, the government permitted concessioners to keep occupying government properties even though their concessions had expired. The Lands Authority took no action to observe the law and evict the irregular occupants.

Now, all those who claim title on government properties with an expired concession will be given a further temporary concession of 50 years, with the payment of a one-time fee and new generous lease terms based on valuations to be made by the Lands Authority.

According to the scheme, the annual ground rent will be calculated at 2% of the market value of the property valuation and will only increase by 10% once every ten years.

In the case of commercial premises, such as shops in prime areas, the scheme will also create unfair competition with those operating their business in properties leased on current commercial rates.

The new scheme is also open to those with a valid temporary concession, which will expire before 2030.

These tenants will also be allowed a further 50-year extension, again bypassing the public tender process.

The only exceptions are concessions approved by parliament, usually for large commercial projects where the land exceeds more than 1,500 square metres, kiosks, concessions granted by a tender (recent ones) and agricultural land that is developable according to the current local plans.

The number of public properties around Malta and Gozo that could become eligible for this scheme is as yet unclear.