Silvio Schembri cleared of ethics breach in land office case

Malta’s Standards Commissioner, Joseph Azzopardi, has formally concluded that Economy Minister Silvio Schembri did not commit an ethics breach in relation to the acquisition of his constituency offices from property developers who later benefitted from government land transfers.

The inquiry, which was launched following a complaint by civil society activist Robert Aquilina in March 2023, examined whether Schembri’s dealings with two prominent developers amounted to a conflict of interest, given his ministerial responsibilities in land administration.

The findings have effectively cleared the minister of wrongdoing. However, the report also carried broader observations about the potential risks when ministers receive benefits or enter into property arrangements with businesspersons who could be affected by government decisions.

Background to the controversy

The matter first came under public scrutiny after a series of news reports highlighted that Schembri’s constituency offices in Luqa and Siġġiewi had been obtained from well-known property developers. These same developers were involved in separate cases in which the Lands Authority approved transfers of public land to them.

The allegations raised concerns because, at the time of the land transfers, Schembri was politically responsible for the lands portfolio, having been given that responsibility following the 2022 general election.

The key public interest question was whether the minister’s relationship with these developers—through office leases or acquisitions—could have influenced or appeared to influence decisions by the Lands Authority in their favour.

The complaint and the investigation

In March 2023, former Repubblika president Robert Aquilina lodged a formal request with the Standards Commissioner, calling for an inquiry into the case. His submission specifically cited media reports alleging that parcels of public land had been granted to contractors from whom Minister Silvio Schembri had obtained his constituency offices.

The complaint centred on two distinct property arrangements:

• The first concerned Schembri’s Luqa office, constructed by developer Paul Attard, which Schembri secured through a promise of sale contract.
• The second involved Schembri’s Siġġiewi office, leased from developer Anton Camilleri, widely known by the nickname “il-Franċiż”.

The commissioner’s task was to determine whether these arrangements could constitute a breach of ethical standards, particularly given that both developers had subsequently benefitted from public land transfers approved by the Lands Authority.

Composition and powers of the Lands Authority board

Central to the investigation was the question of whether Schembri, as minister, could influence the Lands Authority’s decision-making process.

In his report, Commissioner Azzopardi described how the Lands Authority board is organised. It consists of multiple members selected by various government ministries, together with a chairperson named by the Prime Minister and an Opposition representative. According to the commissioner, this arrangement ensures that the board operates independently and is not subject to direct control by any single minister.

In the cases examined—land transfers in Mellieħa and St George’s Bay—the Opposition’s representative on the board had voted in favour of the decisions. Importantly, the commissioner concluded that Schembri did not have the legal authority to instruct or compel the board to approve or reject land transfers.

The report stated: “There was no possibility of a conflict of interest tied to these land transfers,” thereby clearing the minister of the specific ethics allegation.

The Mellieħa land case

A key matter under review concerned a public tender offering a parcel of land in Mellieħa, designated for the construction of apartment buildings. The tender provided that the owner of an adjacent parcel—T&S Property Holdings—would have a right of first refusal.

Paul Attard, the majority shareholder in T&S Property Holdings, was also the developer who had built the block of apartments in Luqa where Schembri’s constituency office was located. This connection prompted concerns about whether the land transfer decision could have been influenced by the minister’s dealings with Attard.

The commissioner noted that Schembri’s promise of sale agreement for the Luqa office predated the 2022 general election, and thus was agreed upon before Schembri assumed responsibility for the lands portfolio. Moreover, a month after the ethics complaint was filed in 2023, Schembri and his wife completed the outright purchase of the Luqa office from Attard, ending any ongoing contractual relationship between the two parties.

The St George’s Bay land case

The other issue examined related to developer Anton Camilleri, the owner of the premises that Minister Schembri used as his constituency office in Siġġiewi. Camilleri’s company had acquired a small parcel of public land in St George’s Bay, which was crucial for the redevelopment of the Villa Rosa project.

Schembri presented documentation showing a formal rental agreement with Camilleri’s company for the Siġġiewi office, with rent set at €319 every three months—a relatively modest rate. Critics argued that the low rent could be seen as a benefit in kind from a developer with business before the state.

However, the commissioner rejected this connection as grounds for an ethics breach, noting again that Schembri lacked the power to instruct the Lands Authority in matters of land transfer, and that the board itself is responsible for all such decisions.

Observations on ethical safeguards

While clearing Schembri of wrongdoing in these specific cases, Commissioner Azzopardi used the opportunity to make wider recommendations. He stated: “This conclusion does not mean that there is no scope for preoccupation if a minister is granted benefits by a developer or businessperson, or that these benefits cannot create a conflict of interest in different circumstances.”

He urged the introduction of effective controls on donations, benefits in kind, or other forms of value given to ministers and Members of Parliament. Such measures, he argued, would help preserve public trust and prevent even the appearance of impropriety.

Broader political implications

The case underscores the complexities of political ethics investigations in Malta, particularly when ministers have professional or personal arrangements with private sector actors who may be affected by government policy.

For the Opposition and civil society groups, the episode raises questions about transparency and whether existing rules on conflicts of interest are sufficiently robust. For government officials, the outcome provides some reassurance that the current system of independent board governance in the Lands Authority offers a degree of protection against political interference.

However, the commissioner’s comments suggest that legal structures alone may not fully address public perceptions of bias or undue influence, especially when political figures engage in private transactions with individuals or companies active in sensitive policy areas.

Conclusion

The Standards Commissioner’s report ultimately determined that Minister Silvio Schembri did not breach ethics rules in relation to the Luqa and Siġġiewi constituency offices. The key reason was that he lacked the authority to direct the Lands Authority’s decisions on the developers’ land transactions.

Nonetheless, the investigation serves as a reminder of the need for stronger safeguards against potential conflicts of interest, including more rigorous regulation of gifts, benefits, and contractual arrangements between politicians and private business interests.

While Schembri emerges from the inquiry without a formal finding against him, the case adds to the ongoing debate about political ethics in Malta and how best to maintain public confidence in decision-making processes.

FAQs

What was the main allegation against Silvio Schembri?
He was alleged to have had a conflict of interest by using constituency offices obtained from developers who later benefitted from public land transfers.

Who conducted the investigation?
The inquiry was led by Malta’s Standards Commissioner, Joseph Azzopardi.

What did the commissioner conclude?
The commissioner found no ethics breach, stating Schembri lacked the authority to influence the Lands Authority’s land transfer decisions.

Which developers were involved in the case?
Developers Paul Attard and Anton Camilleri were connected to the offices used by Schembri.

Did the offices come from public land?
No, the offices themselves were not public land; the developers later acquired public land in separate transactions.

Was there a rental agreement for the Siġġiewi office?
Yes, Schembri rented it from Camilleri’s company at €319 every three months.

What was the Mellieħa land issue?
It involved a public tender granting a right of first refusal to T&S Property Holdings, linked to Paul Attard.

When did Schembri acquire the Luqa office?
He had a promise of sale agreement before the 2022 election and bought it outright in 2023.

Did the Opposition support the land transfers?
Yes, the Opposition’s representative on the Lands Authority board voted in favour of the transfers.

What changes did the commissioner recommend?
He called for stronger controls on benefits, donations, and gifts to ministers and MPs to prevent conflicts of interest.