Minister's former aide charged with extortion on state school works

Edward Caruana, former chief canvasser of education minister Evarist Bartolo is charged with having demanded payments from suppliers of the Foundation for Tomorrow's Schools • Charges filed one year after MaltaToday broke the story

Evarist Bartolo’s (left) former permanent secretary Joseph Caruana (centre), was recently transferred to the finance ministry. His brother Edward Caruana (right) has spent the last 11 months under investigation over fraud and extortion, and charges will be filed on Monday
Evarist Bartolo’s (left) former permanent secretary Joseph Caruana (centre), was recently transferred to the finance ministry. His brother Edward Caruana (right) has spent the last 11 months under investigation over fraud and extortion, and charges will be filed on Monday

A court has decreed that there is sufficient prima facie evidence for Edward Caruana, a former chief canvasser of education minister Evarist Bartolo, to be indicted on charges of unlawful exaction and extortion in the commission of works for the Foundation for Tomorrow’s Schools.

Caruana, 57 – whose brother Joseph was the education ministry’s permanent secretary as recently as June – pleaded not guilty to charges of illegal exaction, that is, having demanded payments from suppliers of the FTS, where he was procurement officer to facilitate outstanding payments. He was also charged with extortion, trading in influence and use of falsified documents.

The charges come a year after MaltaToday first reported in November 2016 that the former chief executive of the FTS, Philip Rizzo, had alleged corruption in the issuing of direct orders for the renovation of government schools.

Rizzo, 65, who resigned his post, had singled out Edward Caruana’s role in his capacity as the person responsible for direct orders.

This morning magistrate Donatella Frendo Dimech gave a decree of Prima Facie after hearing a number of witnesses testify.

The case had been passed on to the police by the Education Ministry at the beginning of September after an internal inquiry found enough prima facie  evidence to merit a criminal investigation. 

Former FTS CEO Philip Rizzo called to testify

Inspector Rennie Stivala summoned former FTS CEO Philip Rizzo to testify.

Rizzo, an auditor with 22 years of experience had filed the police report, he said.

FTS was created in 2001 to manage state schools according to the authorities of the education authorities, he said. “When I reported Caruana I did it as CEO, not because of some personal issue.”

“I had conducted a detailed investigation both before and when I was appointed CEO because Minister Bartolo told me that one of the reasons for which I had been chosen for the post was my experience as an auditor and the minister had serious doubts about the operation of FTS and Edward Caruana in particular.”

“Edward Caruana had been the manager of summer projects. This was a new role which took care of urgent works which cannot wait for tenders but which need shortcuts. This was in March 2016.”

He exhibited correspondence which he had exchanged with minister Bartolo. Rizzo had been given a list of people to be dismissed upon his appointment and said he had replied “lets not rush to throw any one out, except Edward Caruana. Form my first day.”

Earlier this year he had seen a report alleging a bribery attempt involving Caruana and Robert Ciantar as well as a Gozitan contractor called Giovann Vella. Rizzo had doubts about claims for payments of around €25,000 on works in toilets in a school in Gozo some months before, he said.

“At first glance the quotations and the invoices were clearly false. They were all pristine white, when they should have been 9 months old. They were not folded and the signatures of the contractors were different from those on other contracts of works by the same contractors.” As this was happening Tony Muscat reported chest pain and went to hospital.

“Tony Muscat was number one before me. He’s telling me that he doesn’t know about the invoices, the works and the signatures.” The works had been finished at that point, nine months on. Muscat had explained to Rizzo that Caruana had given them to him.

Shortly later he had received a letter from the permanent secretary by hand which said CEO recommends the payment, which the Permanent Secretary normally automatically authorises. “Nobody knew about these works and invoices ended up in our hands 8 months after and where obviously false. I refused to pay.”

After this, he had received a message from architect Cornelia Tabone encouraging prompt payment. “I replied on 20 June when I said I was refusing payment because I believed the claims to be false. Let them take me to court if they want.”

Lawyers Stefano Filletti and Stephen Tonna Lowell are appearing as defence counsel.