Magnates presented Prime Minister with plans for hotel whose owners JPM Brothers were trying to sell
The Prime Minister was in discussions over plans by magnates George Fenech and Joe Gasan, together with their architectural consultant Ray Demicoli, to transform the Jerma Palace Hotel into a potential ‘Portomaso of the south’, this newspaper has learnt.
Lawrence Gonzi, who is the minister responsible for planning and environment, was shown a detailed architectural plan on the project, at the beginning of the summer.
MaltaToday understands that at the same time, the owners of the Jerma hotel – developers JPM Brothers – were hoping for an urgent sale of the property which they had only purchased the year before, and settle outstanding loans with banks and creditors, believed to amount to millions of euros.
But sources from the office of the prime minister have said that while Gonzi welcomed the Jerma proposal, he later backtracked on supporting it when realised the political and ethical implications of his involvement – as the minister responsible for MEPA – in the application process.
Finance Minister Tonio Fenech has found himself tied to the vicissitudes of both JPM Brothers and the Gasan-Fenech tandem.
As exposed by MaltaToday, Gasan and Fenech invited the finance minister to watch Arsenal play in Spain, and travel there by private jet. The April trip took place just weeks before the entrepreneurs’ meeting with Gonzi on their plans for the Jerma.
And last Sunday, this newspaper revealed the claims of contractors Rainbow Turnkey Projects, who were engaged to carry out works on Tonio Fenech’s house by mega-developers JPM Developers, reportedly in return for the minister’s intervention in the sale of their hotel to Gasan and Fenech.
Tonio Fenech has denied any brokerage role between the Jerma’s owners, and the two businessmen. Rainbow Turnkey Projects claim they are owed monies by the Montebello brothers (JPM), and have since instituted legal proceedings against the company.
Scouting on Jerma The meeting between Gasan and Fenech, and the prime minister now appears to have been a ‘scouting expedition’ for the two businessmen, before finalising any deal with the Montebello brothers on the sale of the Jerma.
Contacted yesterday, architect Ray Demicoli said he would not divulge information pertaining to a client. “It is confidential, and no application was made to MEPA,” he said when asked directly on the meeting with Gonzi on the Jerma plans.
The Office of the Prime Minister also replied to questions on Gonzi’s position on the plans for the Jerma. Without referring to the ethicality of his meeting with the two businessmen as minister responsible for MEPA, Gonzi chose to focus on the legal correctness of the project:
“The Prime Minister received a number of proposals from different investors regarding projects in Marsaskala. The Prime Minister is in favour of any project that develops the enormous potential of the south of Malta, as long as all environmental studies are carried out as may be stipulated by MEPA, and as long as the project is financially viable and in accordance with the government’s policy of sustainable development.”
Attempts to contact George Fenech on the matter were unsuccessful.
But Joe Gasan did speak to MaltaToday, stressing that he was “only consulted” on the Jerma plans, and that the person mostly interested in the project was George Fenech. “All I know is that I was asked for my opinion but after I looked into the Jerma proposal I backed out because I didn’t like the fact that the Montebello brothers were pressuring to hurry up the deal. They were asking for just a few weeks to conclude.”
Gasan claimed he had “no knowledge of any meeting” with Gonzi on the Jerma plans. “It’s George Fenech you have to talk to because he was mostly involved in the Jerma issue.”
Mizzi’s involvement This newspaper has also learnt that behind the scenes, business mogul and HSBC chairman Bertie Mizzi had been approached to organise a consortium that would purchase the Jerma hotel.
MaltaToday can confirm that one business investor was personally informed by Mizzi that Gasan and Fenech were “already way ahead” with their plans to buy the hotel.
When questioned on the subject, Mizzi tersely replied: “I have nothing to do with Jerma.”
Asked if he took part in discussions on the Jerma sale, Mizzi said: “It’s none of your business… I have nothing to do with Jerma, so if I took part or not in any discussions it is none of your business.”
Asked once again if he participated in discussions in his role as HSBC chairman, Mizzi answered: “It’s none of your business. I have nothing more to say.”
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