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Saturday, April 14, 2018, 09:40by
Ivan Camilleri
Cannabis contract signed but law not yet approved by Parliament
Ministry says company was told contract only executable once law is enacted
Updated 7pm with ministry statement
The government on Friday failed to explain how
an Australian company had been given a contract to develop a 4,000 square metre facility to construct a medical production and cannabis cultivation facility in the south of Malta when the law making this possible had not even been approved by Parliament.
The Times of Malta is informed that the law on the production of cannabis for medical purposes is still being debated in Parliament and MPs are yet to vote on its approval at third reading.
According to Malta’s legislative system, a Bill becomes law only after MPs approve it at third reading in Parliament, it is signed by the President and is published in the Government Gazette.
Despite that the Production of Cannabis for Medical Use Bill is still on the agenda of the House of Representatives awaiting a final vote, MGC Pharma earlier this week said that “the Maltese government had given the Australian company the go-ahead to construct and operate a medical cannabis facility in Malta”.
Read: Malta Enterprise approves five medical cannabis investments
MGC co-founder and CEO Roby Zomer said the contract with the Maltese government “provides MGC with an attractive new cultivation site in the EU, completing the board’s strategy to operate a full, vertically integrated medical cannabis operation in Europe”.
He added that “the contract allowed the company to also sell its medical cannabis flowers (buds) throughout the region, including Germany”.
Asked on Friday to specify under which law the Maltese government signed the contract with MGC, the Ministry for Economy, headed by Chris Cardona, did not reply.
The Times of Malta has revealed that despite Prime Minister Joseph Muscat having said in Parliament that “only small-batch cultivation for research purposes” would be allowed and he expected companies setting up in Malta to import pre-processed cannabis oils for further refinement and preparation, it has now resulted that this will not be the case.
The MGC Pharma CEO made it clear that according to the agreement with the government, his company would be allowed to cultivate cannabis plants on its premises to use in its medical production facilities and to be able to sell cannabis flowers to other markets for medical use.
Asked how many cannabis plants the Australian company will be harvesting for its medical facility every year, the ministry did not reply.
PN social policy shadow Minister Claudio Grech said when contacted that the statement of the Australian company was baffling.
“According to the Bill pending approval in Parliament, anyone intending to carry out this business needs to obtain, among other requirements, a letter of intent from Malta Enterprise and a licence from the Medicines Authority. These cannot be issued, as the Bill is still pending approval by Parliament,” he said.
“We participated in the legislative process in good faith and sought to constructively address the massive risks which the original Bill contained, some of which we’re satisfied that we managed to do.
“However, if the company’s statement is factual, it makes it amply clear that we are being taken for a ride all the way regarding government intentions on the cultivation of cannabis in Malta”.
PN statement
The people deserved to know if it was true that the government had authorised a private Australian company to operate a medicinal cannabis when Parliament had not yet approved the Bill.
If the statement made by the Australian company was true, it meant that the government had ignored Parliament in a sensitive issue.
The government should say if it was true that a letter of intent for a contract or any other authorisation had been issued to the company or others for activity related to the production of cannabis for medicinal use.
Ministry statement
The Economy Ministry said the company in question was given a letter of intent from Malta Enterprise, subject to more than 20 provisions and conditions.
It states that the letter of intent is only valid and effective if/once the law regulating medical cannabis manufacturing is enacted.
"It makes clear reference that there will be conditions, regulations, and provisions in laws that will regulate the subject matter. It is clear that if the law is not approved by Parliament, the letter of intent has no value or legal validity."
This letter of intent can only be converted into an executable contract (eventually through the signing of the lease agreement with Malta Industrial Parks) once the law is enacted. The conditions in the lease agreement shall mirror the same conditions as stipulated in the letter of intent.
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