News | Sunday, 29 March 2009

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Azzopardi defends Joint Office scheme as tenants complain of ‘discrimination’

Raphael Vassallo
Jason Azzopardi, the parliamentary secretary responsible for the Lands Department, has defended the recent amendments to a scheme to redeem ground rent on properties purchased from the Joint Office, arguing that such revisions were aimed at curbing abuses related to property speculation.
“It was noted that in certain cases, after the ground rent was redeemed for a few thousands, the property was then sold again at commercial rates in a few days, if not on the same day,” a spokesman for the Lands Department said. “In certain cases said property was developed into a block of apartments. This was a blatant, even if perfectly legal abuse of the scheme. This also went against any policy of sustainable development. The scheme is meant to allow interested parties to become owners of their own home in which they intend to keep on living, and this is what the reform sees to.”
However, tenants who have been trying unsuccessfully to avail of this scheme, in some cases for several years, have complained to this paper that the Joint Office continually delayed their applications, while at the same time facilitating the applications of others... ironically, including persons known to be involved in the property business.
Meanwhile, the conditions of the scheme have changed to stipulate penalties of up to 25% of the property value, for property owners who sell their redeemed properties within five years. These new and less favourable conditions are now applicable also to tenants who had applied to redeem their ground rent under the old scheme.
But Azzopardi explains that the mismatch in the time taken to handle different applications was the result of bureaucratic problems, and not ‘discrimination’ as some disgruntled tenants claim.
“It is important to point out that this is not a brand new scheme, yet an improvement of the original scheme launched in 2001,” a spokesman for Dr Azzopardi said in reply to questions by MaltaToday.
“The reformed scheme is designed to address shortcomings created by the mere success of the same scheme. After launch in 2001, it was discovered that the scheme was so successful, that a backlog of applicants was quickly materializing, making it extremely difficult to keep up with the demand.”
The Lands Department confirmed that a total of 5,420 applications have so far been received.
“One has to keep in mind that all these applications have to be studied, and investigated in order to be catered for. You will understand how time-consuming this is. Having said this, one also has to understand that some cases are more complicated than others, hence will take longer to be dealt with.”
Apart from changing the financial penalties for re-selling a property after ground rent redemption, the reform also introduced an application form that compiles necessary data, and economises on time. Azzopardi revealed that in the past days, the Government Property Division has also launched a farming-out process for notaries who would be interested in assisting with this scheme. Certified notaries will be able carry out notarial work required for the redemption of ground rents, and hence help reduce the backlog.
However this does not address the key irony identified by many unsuccessful applicants: that the above abuses could have been foreseen, considering that the successful applicants included people known to be active in the property business.
As one angry resident complained to our newspaper: “The success of your application seems to depend on whom you know in the Joint Office.”
But Azzopardi, acknowledging that the scheme is not perfect, suggested that he would be looking into these complaints, too.
“This office is not in a position to verify the profession of persons residing in the property for which an application for the redemption of ground rent made in the past,” his spokesman claimed. “During his first year in office, Dr Azzopardi would address any such abuse in the eventuality of such instances, and ensure transparency in the process.”

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