Keith Schembri and 10 others charged with corruption, fraud, money laundering • Bail denied

Keith Schembri, the once powerful chief of staff to prime minister Joseph Muscat, pleaded not guilty to charges of corruption and giving false testimony.

Schembri was denied bail and taken to the Corradino Correctional Facility. He was also accused of forgery.

On Saturday, Schembri was charged together with his elderly father Alfio Schembri, a director of several of the Kasco companies, and business partner Malcolm Scerri and financial controller Robert Zammit.

Also charged with separate money laundering charges were former Nexia BT partners Brian Tonna, Karl Cini, Manuel Castagna and their financial controller Katrin Bondin Carter, as well as Zenith Finance’s owners Matthew Pace, a former PA board member, and Lorraine Falzon. Zenith was formerly MFSP Financial.

Nexia BT's Brian Tonna being escorted out of court to prison after being denied bail (Photo: James Bianchi/MaltaToday)

Also accused was former Allied Group managing director Vincent Buhagiar. Not included in the charges was former Allied Group managing director Adrian Hillman, who is expected to be brought to Malta from the UK to face similar charges.

The charges stem from allegations made by the former PN leader Simon Busuttil, based on information in the hands of the late journalist Daphne Caruana Galizia, that Schembri transferred €650,000 through various offshore companies and then paid out in the form of financial instruments.

Among the beneficiaries, it was alleged, was Hillman himself, as one of the Allied directors when Schembri’s Kasco group won a tender for the construction of Allied’s €30 million printing press in Mrieħel.

A total of 20 companies connected to the Kasco, Nexia and Zenith principals, were also included in the charges.

All 11 accused pleaded not guilty, but only Buhagiar was granted bail at the end of a marathon sitting.

At all stages of the proceedings, the prosecution, led by Superintendent Frank Anthony Tabone, Inspectors Joseph Scerri and Anne Marie Xuereb, and lawyer Elaine Mercieca Rizzo from the AG, opposed the granting of bail. “The accused are professionally qualified individuals who are accused of facilitating serious crimes. Secondly, they have assets abroad and could abscond. The investigations are still ongoing, even with regards to third parties,” Mercieca Rizzo told the court, adding that their release could lead to tampering with evidence.

The defence counsels were vociferous in their opposition to the prosecution’s request. Stephen Tonna Lowell, for Brian Tonna, insisted that the gravity of the crime alone was not grounds to deny bail. “The fear of absconding is based on incorrect facts in this case. Two companies mentioned do not exist anymore. The accused live and own property in Malta; their families are in Malta. They had been on police bail since last year… There is no risk of them absconding... Their respect for the police bail conditions shows that they will be respecting the court’s conditions. These fears are simply phantasmal.”

Other defence counsels included Michael Sciriha, Franco Debono, and Gianella de Marco.

But Magistrate Charmaine Galea, after an interminable round of protestations, decided she would not grant bail.

Karl Cini, one of the Nexia partners, could be seen crying in the dock.

‘The justice of Keith Schembri’

Defence lawyer Edward Gatt was equally as vociferous in demanding that his client Keith Schembri is given bail. He also told the court that in another magisterial inquiry concerning the alleged kickbacks from Tonna to Schembri on the sale of Maltese citizenship to wealthy foreigners, no prima facie evidence against Schembri had emerged.

Gatt argued that the court had the comfort from the police saying they had not feared the men absconding while on police bail. “These people have everything in Malta. Their families, assets, their life. What is society going to gain by keeping these people under arrest? Here you have a case where the evidence is all documentary and preserved. If they are given bail today or next week, or next month, what is the benefit? The denial of bail must be based on reality not the hypothetical.”

Gatt made himself heard loud and clear in the court. “This looks like the ‘justice of Keith Schembri’… smoke and mirrors. Now that he has been charged, let justice take its course. The same police who decided to give these men police bail are now objecting to their release from arrest.”

Prosecuting lawyer Mercieca Rizzo reiterated that the prosecution’s fears were linked to the fact that the investigations are still underway. “This is not the ‘justice of Keith Schembri’. It is the same justice for all.”

With bail denied for Schembri and his associates, the same fate awaited Matthew Pace and Lorraine Falzon, who were assisted by lawyers Mark Vassallo and Edward Gatt, Ishmael Psaila and Shaun Zammit. They too pleaded not guilty.

Gatt argued that Enemalta scandal accused Tancred Tabone and others “never spent 15 minutes in prison”. Still, the court decided that nobody would get bail.

On the other hand, the ageing Vincent Buhagiar was granted bail, with a €20,000 deposit and €40,000 personal guarantee. He will have to observe a curfew.

Former Allied Group managing director Vincent Buhagiar was the only one to be granted bail

Buhagiar was charged with money laundering, conspiracy to commit a crime, making false declarations to Malta Enterprise, Bank of Valletta and customs, fraud and corruption.

The charges concern an alleged €1.7 million cash aid from Malta Enterprise to the Allied Group, on which a specific amount of money or rebates could have been fraudulently obtained.

The arraignments come following the conclusion of a magisterial inquiry into allegations that Schembri paid Hillman some €650,000 in bribes between 2011 and 2015. The payments are thought to have been routed through offshore companies and accounts, to Hillman’s BVI registered company, Lester Holdings. Schembri’s Kasco Group had previously won a competitive tender to supply Allied Group’s Progress Press with its new multi-million-euro printing press in 2010.

It was Schembri himself who broke the news of his impending arraignment in a lengthy Facebook post on Thursday. He said the magisterial inquiry recommended that criminal action be taken against the directors of Allied Newspapers and himself, as the inquiring Magistrate had ruled that the news outlet defrauded Malta Enterprise.

Reactions

Opposition leader Bernard Grech reacted to yesterday’s happenings by dubbing it the start of the road to justice on a case revealed by Daphne Caruana Galizia. “Today is another episode that confirms how a criminal gang captured the Labour government and then captured the institutions so that none of them will face justice. Today is another episode that confirms the country’s need to turn a new page and close once and for all this black chapter in its history. This is another step to start clearing this country’s reputation.”

22:09 Thank you for following. A summary of proceedings will appear shortly. Goodnight. Kurt Sansone

22:09 This live blog was brought to you with the contribution of our senior court reporter Matthew Agius who gave us a blow-by-blow account of proceedings inside the courtroom. Kurt Sansone

22:07 The accused surrenders his ID card and is led out of the courtroom. The sitting is over. Kurt Sansone

22:06 His lawyer asks for a moment to make a phone call to arrange the deposit. Kurt Sansone

22:02 The court imposes a €20,000 deposit and €40,000 personal guarantee. Buhagiar must also observe a curfew. Kurt Sansone

22:01 The court grants Vince Buhagiar bail. Kurt Sansone

21:59 The magistrate emerges from chambers for the last time tonight. Kurt Sansone

21:49 The magistrate retires to her chambers. Kurt Sansone

21:47 Mercieca Rizzo: “I understand that today he is elderly... but I remind the court that the crimes took place 10 years ago... He had more than the required maturity and knowledge to know between right and wrong.” Kurt Sansone

21:43 Mercieca Rizzo says that the fact that Buhagiar was arraigned separately didn't mean the offences are less serious. She mentions his high office in the Allied Group and how his actions betrayed the trust of his employees. “Money laundering is an offence in itself, and the predicate offence is not required for conviction,” she says. Kurt Sansone

21:40 AG lawyer Elaine Mercieca Rizzo says the argument that the man was unfortunate to be arraigned on the same day as the others is “disrespectful to the court”. Kurt Sansone

21:39 “The court shouldn't treat others differently because their surname was Tabone or Portelli,” she says, to objections from the prosecution. Kurt Sansone

21:37 The defence lawyer refers to bail decrees by the Court of Magistrates in similar cases where the accused (not Buhagiar) were granted bail, including a case involving USD300 million. Kurt Sansone

21:33 She stresses that the crime attributed to Buhagiar is not those of the previous arraignments. Kurt Sansone

21:31 Dalli says Buhagiar was summoned as a witness in 2017. “He was treated as a witness. Everyone knows what happened in 2017. Everyone was following the news,” she says. Dalli adds that Buhagiar is an elderly man vulnerable to COVID-19, which she claims is “rampant” in prison. Kurt Sansone

21:28 The defence lawyer points to the fact that the prosecution had arraigned Buhagiar alone, which is testament to the fact that they are distinguishing between him and the others. She insists that Buhagiar is being charged over things that happened in 2012. “All the evidence is preserved in the inquiry,” she adds. Kurt Sansone

21:26 Dalli points out that contrary to the previous cases, here we do not have a person with assets abroad. “There were three ‘problematic’ transactions according to the conclusions,” Dalli says. “Two did not result,” she claims. Dalli asks about the predicate offence. She argues that Buhagiar's misfortune is being arraigned on the same day as the others and that he must now convince the court that he is worthy of bail. Kurt Sansone

21:21 The police inspector says the accused has no assets outside Malta's jurisdiction. Kurt Sansone

21:20 The lawyer asks the inspector to confirm whether the investigations are ongoing in his regard. He replies that they are not, but they are ongoing with regards to third parties. Defence lawyer Veronique Dalli asks about Buhagiar's health. The inspector says he is scheduled to go to hospital for an operation at the end of this month. Kurt Sansone

21:18 Inspector: “Yes.” Kurt Sansone

21:18 Dalli: “Is it all preserved?” Kurt Sansone

21:17 Inspector: “Yes.” Kurt Sansone

21:17 Dalli: “In Buhagiar's case do we agree that all the evidence against him is documentary?” Kurt Sansone

21:16 Inspector Xerri is called to the stand. Kurt Sansone

21:15 Defence lawyer Veronique Dalli requests bail. The prosecution objects. Kurt Sansone

21:13 The court issues a freezing order over his assets. This is standard procedure in money laundering cases. Kurt Sansone

21:12 The accused, who is 73 years old pleads not guilty to the charges. Kurt Sansone

21:12 Buhagiar is charged with money laundering, conspiracy to commit a crime, making false declarations to Malta Enterprise, Bank of Valletta and customs, fraud and corruption. Kurt Sansone

21:07 The next and last person to be charged is former Allied Group managing director Vincent Buhagiar. Lawyers Veronique Dalli and Dean Hili are appearing for him. Kurt Sansone

21:06 The court denies bail. The magistrate says that the court can only give bail if reassured that there is no risk to the integrity of the investigation. Matthew Pace and Lorraine Falzon will be taken to the Corradino Correctional Facility. Kurt Sansone

21:04 The court is back in session. Kurt Sansone

20:58 QUICK REMINDER: We are at court for a marathon sitting as police charge 11 people on various counts of money laundering, corruption and fraud. The accused include Keith Schembri, the former chief of staff to prime minister Joseph Muscat, and Nexia BT’s Brian Tonna and Karl Cini. All men charged so far, including Schembri, have been denied bail. We are now waiting for the magistrate to decree on bail submissions made by the defence lawyers for Matthew Pace and Lorraine Falzon, owners of Zenith, a financial services firm. Kurt Sansone

20:52 The magistrate retires to chambers to decree on bail. Kurt Sansone

20:52 Gatt's rejoinder: “These are people who have been monitored for four years. Invoices which the police have many copies of. It’s not fair to say there is a fear of tampering when we know that everything is preserved.” Kurt Sansone

20:51 AG lawyer Elaine Mercieca Rizzo says that the police testified on oath and were so jealous of their oath that they even gave evidence in favour of the accused. They said the investigation is still ongoing. Kurt Sansone

20:50 Gatt argues that Tancred Tabone , Grech Pillow, others, “none of these spent 15 minutes in prison”. He is citing other serious cases of corruption and money laundering. The lawyer argues that the court is dealing with bail on a case that involves things that happened years ago. Kurt Sansone

20:48 Meanwhile, Opposition leader Bernard Grech has reacted to today’s happenings: “Today is a small step on the road to justice on a case revealed by Daphne Caruana Galizia and on which a magisterial inquiry was initiated on Simon Busuttil’s request. Today is another episode that confirms how a criminal gang captured the Labour government and then captured the institutions so that none of them will face justice. Today is another episode that confirms the country’s need to turn a new page and close once and for all this black chapter in its history. This is another step to start clearing this country’s reputation.”. Kurt Sansone

20:43 “It would be shameful, if we insert this concept that we can start denying bail. It is hurtful. We know the law too. The court is effectively giving the prosecution a tool to decide on whether to grant bail or not. This is very, very serious,” Gatt says. Kurt Sansone

20:41 There are third parties who are still being investigated, he says in reply to a question by the prosecution. Defence lawyer Edward Gatt now begins his bail submissions. Kurt Sansone

20:41 Inspector Ian Camilleri is summoned to the stand by the defence. He agrees that the accused had obeyed their police bail conditions. There was no issue of them attempting to abscond, he says. Kurt Sansone

20:40 The prosecution objects. “They should have known better, we have, complicity, fraud, money laundering... we have a person who would prepare the transactions for clients. The other accused was a director and the company's AML officer,” the prosecution says. Kurt Sansone

20:35 Lorraine Falzon pleads not guilty, also on behalf of Zenith. Matthew Pace, too pleads not guilty. A freezing order similar to the other cases is issued. The defence requests bail. Kurt Sansone

20:31 The charges include money laundering, making a false declaration to a public authority, forgery and complicity in a criminal act. Kurt Sansone

20:31 The next round of charges are filed against Lorraine Falzon and Matthew Pace, who are also accused on behalf of Zenith, which was previously named MFSP. They are assisted by lawyers Mark Vassallo, Edward Gatt, Ishmael Psaila and Shaun Zammit. Kurt Sansone

20:22 We now wait for the last tranche of accused. These include Matthew Pace, owner of financial services firm MFSP (later renamed Zenith) and two others. Kurt Sansone

20:18 The court after hearing the arguments observes that the charges deal with money laundering, which while not carrying life sentences carry long sentences. It observes that the men had been given police bail, but now the scenario was entirely different that they have been charged. “This is not based on non-existent fears… Keith schembri is not being treated any differently from anyone else,” the magistrate says as she denies bail. Kurt Sansone

20:16 The magistrate denies bail. Keith Schembri, the former chief of staff to prime minister Joseph Muscat, will sleep in jail tonight. His father, Alfio Schembri, and business associates Malcolm Scerri and Robert Zammit are also denied bail. Kurt Sansone

20:14 The magistrate emerges from chambers. Kurt Sansone

20:13 As we wait for the magistrate to pronounce herself on bail, our senior court reporter Matthew Agius who is inside the courtroom, tells us Keith Schembri is talking to his lawyers. Schembri scratches his nose a lot as he stands up and turns around, facing the press and continues to talk to one of his lawyers, Mark Vassallo. Kurt Sansone

20:04 Gatt tells the court that the previous sitting dealt with different facts. He concludes his bail submissions and the magistrate retires to chambers to draw up her decree. Kurt Sansone

20:01 She insists the prosecution’s fears are linked to the fact that the investigations are still underway. “This is not the ‘justice of Keith Schembri’. It is the same justice for all,” Mercieca Rizzo insists. Kurt Sansone

19:59 AG lawyer Elaine Mercieca Rizzo rebuts: “Shouting doesn't make your point any more convincing. The crimes are here and so are the charges. None of them are time barred and had been given prima facie by magistrates. The prosecution is not here on a whim.” Kurt Sansone

19:58 Gatt argues that everyone should qualify for bail if the court is convinced that they will obey its orders. “They had shown that they had no intention of absconding over the years… are you going to send this elderly man to prison?” Kurt Sansone

19:55 Gatt raises his voice: “This is the justice of Keith Schembri… Smoke and mirrors. Now he has been charged, let justice take its course. The same police who decided to give these men police bail are now objecting to their release from arrest.” Kurt Sansone

19:53 Defence lawyer Edward Gatt continues his bail submissions. “They have been participating in the inquiry for years. Would they wait for the conclusion of the inquiry and to be arraigned to abscond? The predicate offence is the starting point. The date mentioned by the inspector – 2010 – means the predicate offences are apparently time barred,” Gatt notes. Kurt Sansone

19:51 QUICK REMINDER: We are in court for a marathon sitting as Keith Schembri and 10 other people are charged with various counts of money laundering, fraud and corruption. In the first sitting, Brian Tonna, Karl Cini, Manuel Castagna and Katrin Bondin Carter – all from financial services firm Nexia BT – were denied bail and are now at the Corradino Correctional Facility. We are now hearing bail submissions for Keith Schembri, his father Alfio, Malcolm Scerri and Robert Zammit, all linked to the businesses run by Keith. Kurt Sansone

19:48 Defence lawyer Edward Gatt argues that the court has the comfort of the fact that the police have said that they had not feared the men absconding. “These people have everything in Malta. Their families, assets, their life. What is society going to gain by keeping these people under arrest? Here you have a case where the evidence is all documentary and preserved. If they are given bail today or next week, next month what is the gain? The denial of bail must be based on reality not the hypothetical.” Kurt Sansone

19:46 The sitting moves on to bail submissions. Kurt Sansone

19:46 Tabone: “The law says that you cannot exceed 48 hours. In that case, you must give police bail.” Kurt Sansone

19:46 Gatt: “If you have a person in front of you who you fear is going to abscond will you give police bail?” Kurt Sansone

19:46 Superintendent Frank Tabone is summoned to the stand. Gatt asks him about the decision to grant police bail. This was granted as the investigations were ongoing and the 48 hours permissible for arrest were insufficient, Tabone says. Kurt Sansone

19:44 Answering questions by Gatt, the inspector says that Keith Schembri was “very talkative” and had to be reined in at times. The police would stop him to tell him they are asking on something else. The inspector says that Alfio Schembri was an elderly man and hard of hearing. Kurt Sansone

19:43 Gatt asks about the inquiry led by Magistrate Natasha Galea Sciberras and notes that his clients had been given police bail. The magistrate had investigated claims that Schembri received kickbacks from the sale of Maltese passports to wealthy foreigners. The police inspector confirms that in the inquiry led by Galea Sciberras, the magistrate came to the conclusion that there was no prima facie evidence against him. Kurt Sansone

19:39 Gatt asks what period of time the investigation into the Times of Malta printing press delve into. The inspector replies: “If I'm not mistaken, we are going back to 2010 and before.” Kurt Sansone

19:36 Gatt: “Do we agree that they cooperated fully with the investigation?” The inspector replies in the affirmative. Kurt Sansone

19:35 Defence lawyer Edward Gatt calls Inspector Annemarie Xuereb to the stand. Kurt Sansone

19:35 Mercieca Rizzo says the accusations involve large amounts of money… money laundering... there are charges of falsification of documents as well. “The prosecution cannot confirm whether offshore companies are still operating. Some of the accused are very close to third parties who are still under investigation,” she says. Kurt Sansone

19:33 As in the previous cases, the court imposes a freezing order over all the men's property, bar an annual allowance of €13,000. Lawyer Edward Gatt requests bail but the prosecution objects "for the same reasons as in the previous sitting". The court asks AG lawyer Elaine Mercieca Rizzo to list them. Kurt Sansone

19:26 The court now asks the men as representatives of their respective companies what they plead to the charges. As expected, they all plead not guilty. Kurt Sansone

19:25 We are informed that Brian Tonna, Karl Cini, Manuel Castagna and Katrin Bondin Carter, who were denied bail in the previous sitting, have arrived at Corradino Correctional Facility. Kurt Sansone

19:23 All four men plead not guilty to the charges. Kurt Sansone

19:21 Keith Schembri and Malcolm Scerri are accused of corruption and giving false testimony. Keith Schembri alone is accused of forgery. Kurt Sansone

19:21 They are accused of money laundering, complicity in an offence that carries a prison term and fraud. Robert Zammit alone is also accused of making a false declaration to public authority. Kurt Sansone

19:19 It is confirmed that the elderly man is Alfio Schembri, Keith Schembri’s father. The other two men are Malcolm Scerri, a business partner with Schembri, and Robert Zammit. Kurt Sansone

19:15 The magistrate emerges from chambers and the sitting begins. Kurt Sansone

19:15 Keith Schembri is in the dock now, together with an elderly man who we understand is his father. Another two men are also in the dock. Lawyers Edward Gatt and Mark Vassallo are appearing for them. Kurt Sansone

19:14 In a statement following the arraignment in court of former PM Joseph Muscat's Chief of Staff, Keith Schembri and other people, who are facing serious charges of fraud, money laundering and corruption, amongst other charges, ADPD Chairperson Carmel Cacopardo said:

“Today Keith Schembri and 10 other people, as well as twenty companies are facing serious charges in court. They are accused of fraud, corruption, money laundering and more. What is happening today is proof that the institutions did not work as they should have. Action should have been taken by the state institutions, instead it was a Magistrate's investigation of Simon Busuttil's supposedly 'empty' boxes which led to today's arraignments. The state institutions have failed. Today is a day of shame for Malta.
“Malta's former 'number one' is being accused of serious financial crime and dirt. He is joined by a Government appointee on the Board of the Planning Authority, Matthew Pace. Matthew Pace had to resign because he was caught in a position of conflict of interest: while voting in favour of the dB project permit in Pembroke, he was already selling apartments through the real estate agency of which he is part-owner. Today is a day of shame because it is part-evidence that the Government of Malta was run by delinquents.” Kurt Sansone

19:01 The magistrate has returned and bail is denied. Matthew Vella

18:53 Karl Cini can be seen weeping in the dock as he is comforted by someone by his side. Matthew Vella

18:52 The magistrate suspends the sitting and retires to chambers to rule on the issue Matthew Vella

18:52 The interminable bail submissions come to an end. Matthew Vella

18:45 Tonna Lowell points out that these cases all carry the punishment of life imprisonment. Debono reels off a list of people accused of crimes carrying life imprisonment who were granted bail on arraignment. Matthew Vella

18:43 The bail submissions go on, as Elaine Mercieca Rizzo makes her counter arguments. She mentions various examples when a person was not given bail after being arraigned in court due to ongoing investigations. She mentions the Degiorgio brothers and drug lord Jordan Azzopardi. Matthew Vella

18:42 The bail submissions go on, as Elaine Mercieca Rizzo makes her counter arguments. Matthew Vella

18:34 Debono argues at length on the use of police bail. “This isn’t that stage anymore. We are here asking for bail for a person who has no foreign companies, who has strong ties to the community in Malta, who attended whenever called by the prosecution... So if the police felt comfortable releasing her on police bail several times, why come to court and object to bail?” Matthew Vella

18:28 Sciriha agrees with his colleague and points out that his client is not accused of all the charges. He points out that the prosecution is very powerful in money laundering cases. The fear of tampering with evidence in this case where all the evidence is documentary is unfounded, he argues. Sciriha says his client, Castagna, was only a director of a company. Debono says he wasn't expecting to hear that investigations are still underway in this case. Matthew Vella

18:21 “You have persons here who obeyed every order of the police... So the AG says that it is still talking to third parties. So why did you choose today to arraign them? There is no issue of prescription, no problems with inquiries... don’t put it on my clients.” Tonna Lowell posits that this argument would create a problematic precedent. It would mean that defendants are at the mercy of the prosecution who could arraign them halfway through an investigation, with all the trouble this would bring to the defendants. Matthew Vella

18:17 Debono is vociferously insisting that his client cooperated with the police. Asked for closing arguments, Tonna Lowell tells the court that the gravity of the crime alone is not a ground to deny bail. The fear of absconding, he said, is based on incorrect facts in this case. Two companies mentioned do not exist anymore. The accused live and own property in Malta; their families are in Malta. They had been on police bail since last year. “I am almost upset when I hear there is a risk of them absconding. There is no risk of them absconding... Their respect for the police bail conditions shows that they will be respecting the court’s conditions. These fears are simply phantoms.” Matthew Vella

18:15 Franco Debono asks if the investigations are still ongoing with regards to his client. The inspector said he doesn’t believe so, but needs to confirm this. Other third parties are still being investigated. Matthew Vella

18:10 Tonna Lowell asks if the investigation had revealed that Willerby Trade, one of Tonna’s offshore company, had been closed by Tonna. She replies in the negative.

Tonna Lowell asks again about the ongoing investigations. Had Karl Cini been involved in the Progress Press inquiry? “The first time they were spoken to about this case was just a few days ago correct?” - “Yes”.

Inspector William Camilleri is summoned to the stand by Franco Debono. He asks how long ago he had spoken to Bondin Carter. Three weeks to a month ago, replies the witness. She had not posed difficulty in contacting and had been in regular contact with the police, he said. Matthew Vella

18:03 The inspector replies to questions from the defence counsel that the accused always cooperated when questioned by police and released on police bail. He asks if there had been any allegation of the attempting or planning to abscond or tamper with evidence. “As far as I know, no,” she replies. Matthew Vella

17:59 Tonna Lowell summons inspector Anne Marie Xuereb as a witness with regards bail. He asks about the ongoing investigations. “Originally the investigations began after the first inquiry... subsequently they continued and are still ongoing after the completion of the second inquiry… The first inquiry into Nexia, began under Magistrate Aaron Bugeja. This was later passed on to magistrate Natasha Galea Sciberras.” Matthew Vella

17:57 The defence lawyers all request bail for their clients. The prosecution objects. Mercieca Rizzo says the crimes are grave. “The accused are professionally qualified individuals who are accused of facilitating serious crimes. Secondly they have assets abroad and could abscond. The investigations are still ongoing, even with regards third parties,” she says, adding their release could lead to tampering with evidence. Matthew Vella

17:53 The accused persons are only allowed to access just over €13,000 of their funds, under the freezing order. This is standard procedure in money laundering cases and whenever there is a freezing order. Matthew Vella

17:52 The court upholds the prosecution's request and orders the freezing of all the accused's assets and places it in the hands of third parties, prohibiting them from disposing of any property. Matthew Vella

17:50 The defence asks the prosecution whether it could quantify the amounts related to the charges at issue. Lawyer Elaine Mercieca Rizzo declares that she is not in a position to precisely state the amount, however this amount “greatly exceeds half a million euro”. The court asks if the defence are objecting to the freezing orders requested by the prosecution. They do. Matthew Vella

17:44 The companies are: Nexia BT, Nexia BT Limited, BT International Limited, Nexia BT Advisory Services Limited, BTI Services Limited, SPX and Willerby Trading. Matthew Vella

17:43 Brian Tonna, on behalf of Nexia BT Ltd and several other companies is next. The court asks him what the companies will be pleading. “Not guilty” he replies. Matthew Vella

17:39 Bondin Carter pleads not guilty to the charges. Beverly Tonna, the daughter of Brian Tonna, is a director of KBT Holdings, one of the accused companies and is therefore not accused in her personal capacity. Matthew Vella

17:34 Brian Tonna is first to be asked what he pleads. He replies “not guilty”. Castagna also replies not guilty to the charges. Karl Cini answers the initial questions in a loud voice. He too pleads not guilty. Matthew Vella

17:32 The court says that the defendants are accused of money laundering: Cini and Tonna alone are accused of conspiracy. Cini, Tonna and Castagna are accused of giving false information to a public official, as well as fraud. Cini and Tonna are also accused of forgery. Matthew Vella

17:30

#Live #HappeningNow Keith Schembri (right) and his father Alfio Schembri (left) are being taken to court under arrest to face charges of corruption and money launderinghttps://t.co/KaAXYeNuuB pic.twitter.com/rKYLHdfisC

— MaltaToday (@maltatoday) March 20, 2021

Matthew Vella

17:29 The court reads out the list of companies: BT international Ltd, Nexia BT ltd, Nexia Bt Advisory Services Ltd, BTI Services Ltd, are among them. The courtroom acoustics do not lend themselves to individual letters being read out. The court asks whether the charges need to be read out. The lawyers all say no. Matthew Vella

17:26 Lawyers

Tonna Lowell is defence counsel for Tonna and Cini. Sciriha is appearing for Castagna. Debono is appearing for Bondin Carter. Gianella de Marco is appearing for one of the companies. Matthew Vella

17:21 A knock on the door and magistrate Charmaine Galea enters the courtroom. Matthew Vella

17:16 Who is representing who is expected to become clearer once the sitting starts. Matthew Vella

17:10 Veteran lawyer Michael Sciriha has just walked in the courtroom. He confers with Giannella De Marco and Stephen Tonna Lowell. Matthew Vella

17:09 Here’s a refresher of the Schembri-Allied nexus and how this story began. Matthew Vella

17:05 Defence lawyer Stephen Tonna Lowell sits in the front bench next to lawyers Giannella De Marco, Franco Debono and Amadeus Cachia. Behind them sit Brian Tonna, Karl Cini, and Manual Castagna and Lorraine Falzon. Matthew Vella

17:03 Nexia BT financial controller Katrin Bondin Carter is one of the accused. Her lawyers are Franco Debono and Amadeus Cachia. Matthew Vella

17:03

#Live #HappeningNow Nexia BT partners Brian Tonna and Karl Cini taken to court to be arraigned over financial crimes in connection with former OPM chief of staff Keith Schembrihttps://t.co/Ib4ZC5UZ3T pic.twitter.com/f8Ha8LnaDN

— MaltaToday (@maltatoday) March 20, 2021

Matthew Vella

16:52 Lawyers Edward Gatt, Mark Vassallo and Ishmael Psaila are here for Keith Schembri; Veronique Dalli and Dean Hili are appearing for Matthew Pace, of Zenith Finance, formerly MFSP Financial. Matthew Vella

16:45 Last minute preparations are underway in Hall 22, TV screens being moved about and people finding their places. Lawyers Therese Comodini Cachia and Karol Aquilina are here, speaking with Daphne Caruana Galizia’s sisters. It looks like Superintendent Frank Anthony Tabone, Inspectors Joseph Scerri and Anne Marie Xuereb, and lawyer Elaine Mercieca Rizzo will be leading the prosecution tonight. Matthew Vella

16:44 Good evening everyone. Senior court reporter Matthew Agius will be keeping us updated. Matthew Vella