Bribery disguised as commissions, court hears in case against former Allied Group chief Vince Buhagiar
Vince Buhagiar, the former chairman of Progress Press, could not explain 'consultancy' payments he received from Keith Schembri and Kasco at a time when he negotiated the price for new printing machinery at the centre of money laundering and bribery charges

Progress Press suffered a loss of €5.5 million as a result of inflated prices agreed by two of its directors for new printing machines bought from Kasco Technical Services.
Vince Buhagiar, who was chairman of Progress Press, and Adrian Hillman, managing director of Allied Group, had negotiated the deal for the new Mrieħel printing press with Kasco’s directors Keith Schembri and Malcolm Scerri.
Testifying in the compilation of evidence against Buhagiar, Inspector Joseph Xerri said that Buhagiar and Hillman conspired to defraud the company that employed them.
The inflated price left Kasco with a profit that was shared between Buhagiar, Hillman, Schembri and Scerri.
“In the forensic audit expert's opinion, the commissions paid were disguised bribery payments,” the inspector testified, in relation to the information gathered by the magisterial inquiry.
The case revolves around allegations that Schembri paid Hillman up to €650,000 during that same period through offshore accounts.
Hillman, who is in the UK, has so far not been charged.
The inspector said that Buhagiar claimed the payments he received from Kasco in his investment account held at MFSP were for consultancy services. However, Buhagiar never produced an invoice for this consultancy work, unlike the invoices he produced for consultancy services he gave Allied Newspapers.
Buhagiar’s defence lawyer, Veronique Dalli, argued that her client had a gentleman’s agreement with Kasco, while Allied would not pay a cent unless the company received an invoice. She insisted that every entry in Buhagiar’s account was declared to the taxman and fiscal authorities.
Dalli also asked the inspector to confirm that Kasco’s bid for the printing machine tender issued by the Allied Group was chosen after a competitive process that also involved an audit firm.
At the end of the sitting, the court ruled there was enough prima facie evidence for a bill of indictment to be issued against Buhagiar.
Buhagiar was arraigned last week along with 10 other people, including former OPM chief of staff Keith Schembri, on charges of money laundering, fraud and forgery.
The compilation of evidence against Schembri and his associates from the Kasco Group was held earlier today. The court yesterday heard submissions on charges filed against Nexia BT's managing partners and the owners of Zenith Finance.
The case concerning Buhagiar involved allegations that Schembri conspired with Buhagiar and another Allied Group managing director, Adrian Hillman, to cream off thousands from a deal through which Progress Press bought printing machinery from Kasco. Progress Press is part of the Allied Group, which also published the Times of Malta newspaper.
The case is being heard in front of Magistrate Donatella Frendo Dimech.
READ ALSO: Progress Press defrauded millions by two of its own directors and Keith Schembri