Hillman-Schembri ‘graft’ inquiry delivered to Attorney General
The inquiry into money laundering and graft activities between the former Managing Director of The Times of Malta, Adrian Hillman, and Keith Schembri while he occupied the role of chief of staff for former Prime Minister Joseph Muscat, has been submitted to the Attorney General, The Shift can reveal.
The Shift reported late last year that the inquiry, led by
Magistrate Josette Demicoli and initiated in May 2017, had been completed and
was expected shortly. It remains to be seen whether the Attorney General will
make the information public with the same efficiency showed in the Egrant
inquiry that involved former Prime Minister Joseph Muscat.
In May 2017, in the midst of the early electoral campaign
called by Muscat, then-PN leader Simon Busuttil took eight box files to the
court which he said included all the necessary proof that Schembri – the owner
of Kasco Ltd – had passed €650,000 in kickbacks to Hillman.
The move was met with an endless campaign of ridicule led by
the Labour Party stating the box files “were empty”. Now, The Shift is
informed, the inquiry is likely to lead to money laundering charges.
This is the second, out of three magisterial inquiries
involving Schembri, to be concluded more than three years after they were
launched. The last inquiry involving kickbacks between Schembri and Nexia BT’s
Brian Tonna led to a string of arrests and a comprehensive asset freeze on all
those involved – although they have all not been charged.
The allegations on Hillman and Schemnbri were first revealed
by assassinated journalist Daphne Caruana Galizia and then supported by
documents revealed in the Panama Papers.
The alleged kickbacks and graft took place between 2011 and
2016 when The Times of Malta invested in a new €30 million printing press
procured from Kasco Ltd. The Times of Malta also bought all its printing
supplies, costing millions, from Schembri while he was operating from Castille.
He even told one of The Times’ journalists, Jacob Borg, when
interviewed that he had been paying his salary for years.
In the box files presented to court, now forming part of the
inquiry, the former PN leader had claimed that Schembri used bank accounts in
Switzerland and Gibraltar, as well as the now-infamous Pilatus Bank, to pass
the money to Hillman directly or through his secret company Lester Holdings,
opened in the British Virgin Islands by Brian Tonna of Nexia BT.
Both Hillman and Schembri have denied the allegations. An
internal investigation commissioned by Allied Newspapers has never been made
public.
At the same time, the board of directors of Allied
Newspapers, who had approved Hillman’s plan, had failed to involve the police
into their probe, even after the surfacing of fresh claims made by the former
Opposition leader.
The Times of Malta had made an out of court settlement with
Hillman after the latter filed claims of unfair dismissal against his former
employer. No details of this ‘deal’ were ever revealed by the newspaper.
In the meantime, the new printing press has been shut down
and its workers made redundant due to heavy losses incurred. The printing of
its own newspapers has been subcontracted.
A third inquiry, also prompted by Busuttil, is still in
progress. In September 2018, Magistrate Charmaine Galea was tasked with
inquiring into possible money laundering and criminal activities by former
Energy Minister Konrad Mizzi and Schembri over the ownership of 17 Black and
the Electrogas power station.
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