The Government notes the statement issued yesterday by Mr Allan Asquez on behalf of VSB Limited. The Government reminds the public that Mr Asquez was seeking compensation in excess of £2 million – a figure it considers unacceptable.

In his statement, Mr Asquez asks why Minister Arias-Vasquez was involved in the process. Minister Arias-Vasquez was the Government’s lawyer in this respect before Ms Arias-Vasquez stood for election and became a Minister. The Chief Minister therefore asked Ms Arias-Vasquez, now as Minister, to oversee the demolition of the current stadium and development of the new stadium on the Government’s behalf, given her involvement in this prior to the 2023 General Election.

The Government entirely rejects the view that Ms Arias-Vasquez has renegotiated a draft agreement entered into by Mr Asquez and the Chief Minister in August 2023. HMGoG would ask Mr Asquez to provide a copy of the agreement reached on 31st August 2023.

The fact is that a proposal was sent to HMGoG by Mr Asquez’s lawyers on 4 September 2023 which was drafted “without prejudice and subject to contract”. A reply was sent by Ms Arias-Vasquez on 6th September 2023 confirming/querying several points. Again this was the basis of negotiation.

On 7th September 2023 these proposals were wholly rejected by Mr Asquez. They were rejected as Mr Asquez wanted to revert to a previous deal he believed was agreed between himself and the Chief Minister in a meeting held on 20th January 2023 with the Chief Minister, Mr Steven Linares (then Minister for Sport) and Minister Bossano. The Chief Minister does not agree that these were the agreed terms. It was agreed at this meeting that the parties would explore Mr Asquez’s entitlement which Mr Asquez has subsequently failed to substantiate as he said he could.

What emerges from all the different iterations of what Mr Asquez believes he was entitled to is that Mr Asquez believed that he was entitled to wildly more than he was actually entitled to.

The consideration for the Lathbury Stadium was because Mr Asquez claimed that he had a legal claim to the Kiosks within the Victoria Stadium. HMGoG maintains that Mr Asquez had no legal right to the Kiosks.

When HMGoG asked Minister Arias-Vasquez to get involved, LPS confirmed that there was no legal right to the Kiosks. The only discussions in relation to the premises at Lathbury, thereafter, were as an interim measure, whilst the new stadium was being built. This was rejected by Mr Asquez on 7th September 2023.

What Mr Asquez purported was that, despite rejecting the proposals made to him, all Government projects stood still whilst his claims were outstanding. This was obviously not acceptable to HMGoG and the Government therefore proceeded to put Lathbury out to tender in the intervening period. Minister Arias-Vasquez was not involved in this, nor were any of her Ministries included in the process. 

Numerous alternatives were offered to Mr Asquez to try and reach a reasonable settlement.

The Minister leading on the development of the new stadium, the Hon Gemma Arias-Vasquez, said: “Mr Asquez is being entirely unreasonable with his demands. As Mr Asquez knows, the Government will NOT agree to compensation valued in excess of £2m. The Government, however, has offered Mr Asquez a very fair and reasonable offer in excess of £800,000, which he has rejected. In the circumstances, and for that reason, the Government had no other option but to ask the Governor to invoke S.66 of the Landlords and Tenant Act. As we have said on numerous occasions, we are amenable to seek to resolve the matter amicably, in the interests of his business and of the Gibraltarian taxpayer. In the interim, the Government cannot allow the unreasonable demands of an individual to delay the construction of a new national football stadium with its associated amenities which will benefit the whole community, not just those who play or are interested in football and is therefore a development that is undoubtedly and overwhelmingly in the public interest of Gibraltar as a whole."