Progress Press request for Malta Enterprise cash grant didn't include consumables, court hears

Progress Press graft case: Former Malta Enterprise chairman Mario Vella describes the cash grant process during his testimony in the compilation of evidence against Keith Schembri and co-defendents

Progress Press bought equipment for its Mrieħel printing press from Keith Schembri’s Kasco Group, the latter of which is accused of graft in relation to the transaction.
Progress Press bought equipment for its Mrieħel printing press from Keith Schembri’s Kasco Group, the latter of which is accused of graft in relation to the transaction.

Letters of intent submitted by Progress Press for a cash grant from Malta Enterprise did not include any references to consumables, the court has heard.

The compilation of evidence against Keith Schembri and his co-defendants continued on Monday, with testimony heard from the former Malta Enterprise chairman Mario Vella.

Vella described to the court the two requests for investment aid put forward by Progress Press. For the first request, Malta Enterprise replied that it would be able to offer tax credits and subsidies. However, two months later, Progress Press said that it would rather fund the project using internal funds, as opposed to taking out a loan.

"The company asked to have the amount topped up, in place of the subsidies," Vella told the court.

When asked whether the consumables were covered by the grant, he replied no, emphasisng that the disbursement of funds is regulated by strict guidelines that do not allow for this.

As a matter of fact, Vella said that Malta Enterprise had met with company representatives from Progress Press to explain that the grant cannot cover any operational costs, including the consumables.

In a previous hearing, the court heard that employees at Malta Enterprise had found out that consumables were in the original business proposal only after recent media coverage of the case.

READ ALSOMalta Enterprise had to 'stretch its imagination' to approve Progress Press funding, court told

During Vella's cross-examination, lawyer Mark Vassallo handed him one of the two letters of intent and asked how much was eventually approved by Malta Enterprise.

Vella responded that the maximum amount to be given was €1.6 million, as indicated in the letter.

Adam Vella, a financial controller for Allied Group, also testified on Monday. He was presented with several documents, all emails he had sent, that dealt with grants from Malta Enterprise.

Having begun working with Allied Group in 2016, he said that most of the grant had already been received by the time he assumed the position in the company.

He added that he could not comment on the consumables aspect of the grant, as he was not involved with the company when this issue was first flagged.

Several police constables testified during the hearing, all describing the searches conducted against the accused when first arrested. 

Superintendent Frank Tabone mentioned that a number of mobile phones were seized during these searches.