Matthew Vella Prime Minister Lawrence Gonzi has stated in parliament he will be not expressing his view on claims by a turnkey firm whose works in finance minister Tonio Fenech’s house were allegedly “a favour” to the minister.
Gonzi was asked by Labour MP Leo Brincat for “an official reaction” to the reports which featured in MaltaToday on the works carried out by mega-developers JPM Brothers in Fenech’s house in Balzan, in return for the minister’s intervention in a hotel sale.
According to the director of Rainbow Turnkey Projects, the firm sub-contracted by JPM to carry out the works, the job was “a favour” to the minister for his alleged role in the sale of JPM Brothers’s Jerma Hotel, to magnates Joe Gasan and George Fenech.
Gonzi categorically told parliament this week that “it is not (his) job to react to reports in the media. I remind the Honourable MP that the matter is subject to court procedures.” It was Gonzi’s latest refusal to comment on the allegations, vehemently denied by both Tonio Fenech and the Montebello brothers, owners of JPM.
After Fenech instituted libel proceedings against One News for its report on the case, Gonzi refused to address the matter: sidelining questions made to him by the press during his announcement of a major aviation investment in Malta.
Rainbow Projects claim Fenech also owes the firm money for the works but the Office of the Prime Minister claims the minister has already paid for the works carried out by Rainbow.
Rainbow’s director Charles Magro claims JPM director Peter Montebello told him the works at Fenech’s house were a favour in return for the minister’s intervention in the sale of the Jerma hotel to entrepreneurs George Fenech and Joe Gasan.
It turned out that Gonzi had heard out George Fenech and his architect on their plans to create a ‘Portomaso of the South’ on the site of the Jerma Palace hotel in Marsaskala. But the sale never took place.
MaltaToday understands that JPM Brothers was unable to pay Rainbow Projects for its works on the minister’s house, so Tonio Fenech intervened to pay the turnkey firm directly. This led to a disagreement between Fenech and Charles Magro over the payments Rainbow was owed.
Tonio Fenech has categorically denied asking JPM Brothers to carry out works in his private residence with the aim of concluding business on the Jerma sale. “It’s a lie. My arrangement with JPM Brothers was against payment, as according to their quote. Rainbow were sub-contractors for JPM Brothers and I cannot comment on the exchange that took place between them.”
Tonio Fenech said that when Rainbow started slowing down work at his house because they were not being paid by JPM, he offered to take over the arrangement and pay them directly.
Fenech then appointed Gap Developments – the developers behind Tigné’s Fort Cambridge – to complete his house. MaltaToday had also contacted Gap Developments’ sales office, which confirmed that the company “does not do turnkey projects on individual houses… our business is to buy and develop property.”
Any comments?
If you wish your comments to be published in our Letters pages please click button below. Please write a contact number and a postal address where you may be contacted.
Download front page in pdf file format
All the interviews from Reporter on MaltaToday's YouTube channel.
