Several potential clients of rogue Gozitan developer Joseph Portelli have told The Shift that they encountered a brick wall when applying for a Malta Enterprise grant scheme to help them acquire new warehouses in Hal-Far.
Reacting to a story published last week, in which The Shift reported that Portelli began selling large industrial warehouses without having the necessary planning permit, several interested clients stated that when they inquired with Malta Enterprise, they were informed that they were not eligible.
“Malta Enterprise explicitly informed us that Portelli’s project in Hal Far is not eligible for any grants because it lacks a permit. This information is in stark contrast to what their (Portelli’s) agents told me when I expressed interest in acquiring a €700,000 warehouse,” a small industrialist told The Shift.
“It is unfair that these agents are making us believe that we can recover €300,000 from the government if we but from them. What happens if a permit is not granted?” asked another potential investor.
Senior officials from Malta Enterprise have confirmed that only buildings with full permits are eligible to participate in the scheme. The rules of the scheme, designed to assist potential industrial entrepreneurs in acquiring or renting industrial space, state that only buildings with a full industrial permit issued by the Planning Authority (PA) qualify.
“We do not address the issue of whether someone is selling buildings without a permit; that is their responsibility. However, it is essential that those acquiring such properties obtain a full permit to be eligible for government funds,” officials stated.
Portelli selling warehouses without a permit
The scheme aims to provide small and medium-sized enterprises (SMEs) with spaces to start or expand their businesses, as the government has run out of available space in its industrial estates for these types of industries, which are primarily linked to artisanal work.
Just a few weeks after the government announced its new scheme, Joseph Portelli began promoting a project to build over 60 warehouses in Hal Far. This area is currently a lush field and does not have the necessary permits for such development. Portelli only applied to convert the field into an industrial park last March, and the Planning Authority has not even issued a recommendation.
This is not the first time Portelli has begun selling property without waiting for a permit, aiming for a quick sale. In some instances, clients who had already entered into preliminary agreements faced significant issues when the Court ordered the revocation of permits issued illegally by the Planning Authority (PA). A recent example occurred in Sannat, Gozo, where the permit for a row of penthouses built irregularly by the Gozitan developer was revoked. The same happened in a Mellieha project.
Portelli is not the only ‘cowboy’ developer employing this approach, as many others have followed suit by marketing and selling their projects before the PA has discussed and considered a development permit. Currently, the law does not prohibit the sale of property without a permit.
