Muscat claims having no relationship to arrested member of holiday party

Updated at 12:45 with Nationalist Party reaction

Former Prime Minister Joseph Muscat has denied having a personal or professional relationship with a former Malta Gaming Authority employee who is suspected of being part of a criminal conspiracy and leaking insider information from the authority.

Iosif Galea, who now works as a gaming consultant, is wanted by the Maltese authorities to face charges of participating in an alleged criminal conspiracy which used sensitive information leaked to Galea from inside the gaming authority.

The Times of Malta reported on Sunday that Galea, who was wanted by German authorities, was arrested while on holiday in Italy with his partnet, and a holiday group which included the former PM and his family. Galea was the subject of a European Arrest Warrant since early 2021.

But Muscat has insisted he had no connections to the case, telling the newspaper that “to indicate to the contrary is not only gratuitous but also totally baseless sensationalism”.

“Mr Galea has for the past few months been the boyfriend of a long-time friend who was in the group,” Muscat said.

“We were travelling with a larger group of friends and acquaintances for a short holiday. A few hours after our arrival we were informed that Mr Galea was being detained. The rest of the group continued with our holiday and returned to Malta a few days later as planned,” he said.

Muscat said he was not spoken to by the police over the case, stating he was not aware of any arrest warrent against Galea.

Galea is believed to have absconded Maltese justice after this week he was issued with a European Arrest Warrant on the back of money laundering charges issued against former gaming authority employees.

Galea was previously a compliance officer at the Malta Gaming Authority (MGA), which was called the Lotteries and Gaming Authority.

Independent candidate Arnold Cassola has accused the Maltese police of having allowed Iosif Galea to leave Malta despite long-held knowledge of Italian investigators’ interest in Galea’s role for various betting companies.

Galea had been a key witness in the case against former European Commissioner John Dalli’s top aide Silvio Zammit.

Zammit has been facing criminal proceedings since 2012 over his alleged request for a €60 million bribe from snus manufacturer Swedish Match and the European Smokeless Tobacco Council, a lobby group, to help lift a ban on the chewable tobacco.

At the time, Dalli was EU Health Commissioner and was forced to resign after the European Anti-Fraud Agency, OLAF, claimed he was aware that his name was being used by Zammit.

Dalli has always insisted he never discussed money with Zammit and denied any wrongdoing.

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Nationalist Party reaction

Reacting to reports which revealed Galea had managed to leave the country twice, despite being issued with an European Arrest Warrant, the Nationalist Party said it was “worrying”.

“Despite government’s claims that law enforcment systems are working normally in the country, they are not,” Home Affairs spokesperson Joe Giglio said.

“It means that wanted persons who are being sought for a crime, can enter and leave the country without any hindarance,” he said. “And for this the Home Affairs Ministry and the Police Commissioner must answer.”

He said that the Greco report conclusions must be analysed, insisting Malta is a long way from carrying out the needed reforms.