db Group says is in the clear over ITS land transfer

db Group welcomed the published report by the National Audit Office, NAO, on the transfer of the Institute of Tourism Studies (ITS) building to the Group.

The NAO report was published on Tuesday.

In a statement, signed by the Chief Executive Officer, Arthur Gauci, db Group said that the report brings to an end the ‘unfounded and malicious’ allegations against the group on the price paid for the concession of the ITS land in Pembroke.

The group said that whilst details of the report are still being viewed by the executive team, db Group welcomes that the report says that the price paid by Db San Gorg Property Ltd is consonant to the market valuation carried by the Auditor General as part of its terms of reference.

In its statement, the Group has also stated that in the reports no allegations were levelled against the Group in its dealing with the government appointed negotiating team.

In the report, the NAO gave brief details on the transfer of the ITS land

  • In November 2015, Projects Malta Ltd issued a request for proposals (RfP) for the design, build and operation of a mixed tourism and leisure development in St Julian’s on the site occupied by the Institute of Tourism Studies.
  • In February 2016, the Seabank Consortium, the sole bidder, was nominated the preferred proponent with its €17,000,000 bid.
  • Negotiations ended in January 2017, with Cabinet endorsing the €56,000,000 value established by Deloitte who assisted Government in this respect.
  • On 1 February 2017, the Commissioner of Land and the dbSG, entered into a deed for 99 years.
  • In July 2019, the dbSG submitted a fresh application for excavation works while the original application was still active.
  • The National Audit Office (NAO) was requested to review this disposal by the Public Accounts Committee in March 2017. The audit commenced in January 2019.