Jerma ‘favour’ report was in the public interest, editor testifies in Tonio Fenech libel

MaltaToday managing editor Saviour Balzan has defended a 2009 MaltaToday story about alleged ministerial influence in the attempted sale of Marsaskala’s Jerma Palace Hotel, when he was summoned to testify in a libel case filed by former PN finance minister Tonio Fenech against OPM communications officer and former head of news at Labour Party’s TV station Glenn Bedingfield.

The sitting comes almost seven years to the day from the broadcasting of One TV’s news bulletin of the 11 November 2009, which Fenech is claiming to be libellous and defamatory in his regard. 

The bulletin had reported a follow-up of a story published by the MaltaToday that morning, which had reported that one of the owners of construction firm JPM Brothers had told a contractor carrying out works at Tonio Fenech’s residence, that JPM was providing the renovation as a favour for the minister’s influence in the sale of the Jerma, which JPM owned.

Despite having taken One TV to court over the story, the Nationalist politician had not objected to MaltaToday’s story.

The former minister was not in court today, as Balzan took the witness stand, having been summoned as a witness by the defence.

Amidst frequent interruptions by the plaintiff’s counsel, lawyer Peter Fenech, Balzan testified that the MaltaToday coverage of the issue was more comprehensive than that of any other local news house.

“The story was in the public interest, not because minister Tonio Fenech was building his villa, but because he was using the Montebello brothers to do so. They were known to be involved in several high profile projects, the Jerma Hotel and Mistra Heights among them.”

He said the Montebellos were then in great debt, and the news came at a time when it was reported that Fenech had flown by private jet together with George Fenech and Joe Gasan to watch a football match, when these were the prospective buyers the Montebellos wanted to acquire the Jerma hotel. This, he said, was a matter of public interest.

At the time, the Montebellos had also been reported by MaltaToday as having attempted to bribe Tonio Fenech’s private secretary – who admitted to the report and resigned – and were later charged with corruption-related offences, although they were eventually acquitted.

The former minister had travelled abroad to watch a football match with Joe Gasan and George Fenech. “The Montebello brothers were trying to sell the Jerma hotel to them,” Balzan told Magistrate Francesco Depasquale. “The Jerma was registered as a hotel and the Montebellos had been trying to obtain permission to sell it as residential property.” Balzan said that the Montebello brothers had been close friends of Fenech and had helped in his electoral campaign.

“When we found out that the Montebello brothers were building Fenech’s new villa we took a certain interest. Unfortunately for the minister, the Montebellos had subcontracted the works to another company, Charles Magri of Rainbow Turnkey Projects, who they then failed to pay... When Tonio Fenech was approached with questions about this, his replies had only raised more questions,” Balzan recalled.

The Montebellos had told Magri that the works were being carried out “as a favour” to Fenech to assist them in the sale of the Jerma. “The story sounds complicated but it is very simple. Abroad, if a minister’s house is being built by a person whom he helped negotiate a business deal, one would expect repercussions. Here we can only expect libel suits,” Balzan quipped.