Updated | Mr Clean directors remanded in custody on human trafficking charges

The directors and senior management of cleaning company Mr. Clean have been remanded in custody after they were arraigned in court on charges of human trafficking this afternoon, in a case which bears striking similarities to last year's prosecution of two directors of Leisure Clothing, a Chinese government-owned textile factory in Malta.

Pensioner Joseph Degiorgio 71 from Balzan, Company Director Paul Degiorgio 47, from Lija, Christopher Degiorgio, 42 from Naxxar and Joseph Degiorgio's daughter Josianne Bugeja Degiorgio, 34 from Balzan all pleaded not guilty to several charges, of which human trafficking was the most serious.

Prosecuting police inspectors Joseph Busuttil and John Spiteri asked Magistrate Consuelo Scerri Herrera to allow the workers to testify via video conference, but this request was objected to by defence lawyer Joe Giglio, who argued that the defence "already had reservations as to the charges.”

In addition to the human trafficking charges, the Degiorgios are also accused of incorporating or financing a criminal organisation, forming part of that organisation and misappropriation.

Defence lawyer Franco Debono explained that an inquiry is underway and the accused had been on police bail. He could not understand why the police had chosen to arrest his clients.

The accused had been going for questioning regularly. He was very surprised at the arrest, said the lawyer. “I have a 70 year old man here, arraigned under arrest,” Debono pointed out, suggesting that the measure had been excessive.

Inspector Busuttil told the court that the accused had been arrested after months of surveillance, during which the police observed how they would bring Filipinos to Malta and the conditions they were employed under.

Some were living 12 to a room, said Busuttil. "The victims apply from the Philippines, pay €5,000 and then sign a contract. As soon as they arrive in Malta they are given another contract and forced to sign or be sent back. €5,000 takes 3 years to be earned in the Philippines.

The second contract is different to the conditions offered in the Philippines, explained the prosecution. Should employees work less than 40 hours leave would be deducted for the difference in hours. If they work overtime, this would be paid at a part-time rate.

Debono angrily asked him to exhibit the payslips in court. The company, JD contractors, had never paid the tax and NI in spite of deducting it, added the prosecution, who added that "he is also defrauding the government."

Giglio clarified that the difference between the two contracts was not in the pay, but in the accommodation and food arrangements. “They sign a contract in the Philippines though a Filipino agency, JD contractors- a trader with a PD number, brings cleaners to Malta. They had made no arrangement with the agency about accommodation and food.”

In order to leave the Philippines to work, you are required to show that country's authorities a contract including the living arrangements, the court was told.

JD contractors had agreed to provide cleaners, but did not stipulate the living arrangements. Their pay is above the minimum wage, Giglio argued. The contract was signed and stamped by John Degiorgio, added the prosecution.

Debono voiced his displeasure at the arrest. “If he hadn't been in such a hurry to prosecute, they would have realised that the conditions are not as bad as was being made out. The room is 250 square meters in area, let us not mislead the court!” shouted the lawyer.

Giglio said that this was needed to inform the recruitment agency that they were employed. “Whatever they agreed with the agency, we contracted with the individuals.”

The workers had also signed a document saying that they had been aware that they would not enjoy the original accommodation conditions, said the lawyer.

The dormitory was a temporary measure until a dedicated accommodation block was built Giglio added.  The workers also pay for food and rent. “The prosecution is going to argue that the DIER regulations had been breached, but he's pulling the argument further. He's stretching it to the limit of human trafficking because there's a funny clause in the law that allows him to do so.”

On the pay issue, he explained that the company has different clients. “You have subcontractors who pay overtime. You have others who do not require more than 40 hours. So a solution was offered to work extra hours under a different PE number, whereby you work on a part-time basis.”

Debono argued that the charge of human trafficking was unmerited and an incorrect impression had been given that the workers were being accomodated in a cramped room. “That bubble has already been burst. You have people brought from abroad and this hall was used as transient accommodation.”

The DIER lawyer said that up to this morning the workers were receiving phone calls. Magistrate said that if any calls are made they will be rearrested.

Filipino worker Beverly Martinez took to the witness stand. She had come to Malta in 2014, part of a package deal where she paid 250,000 pesos to an agent in the Philippines to cover a month’s accommodation in Malta, the plane ticket and a processing fee. She had signed a contract in the Philippines. Upon her arrival in Malta, she was taken to her friend’s house in Sliema, where five other co-nationals were staying.

“The following day I went to Mr. Clean office in Balzan and they gave me another contract to sign.” Asked by the court whether there were any differences between the two contracts, she said she did not know. The office retained the only copy of her new contract, said Martinez.

She got to know about her conditions of work ‘later on.’ The witness said she would work, cleaning a house for 3-4 hours daily. Other clients the woman delivered services to included ST Microelectronics, Metropol Apartments and lately Portman International, she said. “I always worked under the instructions of Mr. Clean and was paid by them.”

Her wages were €800 per month, depending on the amount of hours she worked, which worked out to an approximate €4.20 hourly rate, irrespective of the time or day she worked. On public holidays she would be paid €4.20 per hour for an 8-hour working day. Payment would be by cheque and any extra would be paid in cash, the witness 

Joe Degiorgio required medical assistance after he collapsed in the courtroom, after all the accused were denied bail. The court also ordered that the assets of the accused be frozen pending the outcome of the case.

Lawyer Joe Giglio appeared for Josianne Bugeja. Lawyers Marion Camilleri, Franco Debono and Amadeus Cachia are defence counsel to the other accused. Lara Dimitrijevic and Ann Marie Bisazza are appearing parte civile for the injured parties.

The case continues on Monday.