Caruana Galizia public inquiry: 17 Black documents seized by police helped identify more people for questioning

Former Economic Crimes Unit chief Ian Abdilla testifies in the Daphne Caruana Galizia public inquiry

Updated at 6:53pm with Owen Bonnici reaction to claim Nexia BT had office in Justice Ministry

Documents linked to 17 Black and electronic equipment seized from Yorgen Fenech enabled police to identify a number of people for questioning, the Caruana Galizia public inquiry heard.

The testimony was given by former Economic Crime Unit head Ian Abdilla when asked about the Memorandum and Articles of Association for Dubai company 17 Black that were seized from Yorgen Fenech's house.

Abdilla said the documents were sent to Dubai for authentication. "I cannot take a document that I had never seen the likes of before and say this is genuine… If I had to bet, the documents seized appeared authentic and genuine," he said.

Abdilla added that as a consequence of the documents, a number of people of interest were identified for questioning.

When asked about the Enemalta wind farm deal in Montenegro in which the State utility company had bought the shares of a wind farm project from Cifidex for an inflated price, Abdilla said the police came across Cifidex from a transaction with 17 Black.

“More evidence emerged from electronic equipment seized by the police,” he said.

Abdilla lamented the lack of resources his unit had to investigate financial crime.

"Had we had the expertise and resources we have now, then we could have functioned better," he admitted.

But throughout the inquiry, Abdilla continued to defend his position as to why the servers of Nexia BT were not seized when the Panama Papers scandal emerged locally in March 2016 and later, internationally, in April 2016. The servers were only seized a year later as part of the Egrant inquiry.

Abdilla also said that Nexia BT had an office within the Justice Ministry. Computers had also been seized by the police from that office, he claimed.

The inquiry continues next Wednesday with the testimony of Foreign Minister Evarist Bartolo.

The inquiry is tasked, among other things, with determining whether the State did all it could to prevent the murder from happening.

In the last sitting, Abdilla said the police feared they would be sued if they seized the servers of Nexia BT in 2016 with no proof of wrongdoing.

Abdilla also defended the decision back then not to call in Konrad Mizzi and Keith Schembri for questioning when their Panama companies were outed. The Financial Intelligence Analysis Unit had compiled a report, which it passed on to the police for further investigation over suspicion of money laundering.

Abdilla insisted under questioning that it would have been too difficult to challenge individuals with just an FIAU report.

Caruana Galizia was murdered in a car bomb just outside her Bidnija house on 16 October 2017. Three men, George Degiorgio, Alfred Degiorgio and Vince Muscat, have been charged with carrying out the assassination, while Yorgen Fenech is charged with masterminding the murder.

Melvin Theuma, who acted as a middleman between Fenech and the three killers, was granted a presidential pardon last year to tell all.

The inquiry board is composed of retired judge Michael Mallia, former chief justice Joseph Said Pullicino and Madame Justice Abigail Lofaro.

Owen Bonnici denies Nexia BT ever had ministry office

In a reaction to the reports of Abdilla’s claims that Nexia BT had an office within the Justice Ministry, Owen Bonnici disputed that this was the case.

The Education Minister and former justice minister said on Facebook that neither Nexia BT not any representative, owner of employee of the company any had an office in the ministry.

He also negated the claim that Nexia BT had servers at the ministry, or that any servers had been seized.

“This is another invention, from start to finish, of Dr Jason Azzopardi,” he said.

11:18 That’s all for today. Thank you for following. Kurt Sansone
11:14 The next sitting is on Wednesday 15 July when Foreign Minister Evarist Bartolo and a Gozitan journalist are to testify. Kurt Sansone
11:13 The questioning is over. Abdilla steps off the stand. Kurt Sansone
11:12 The witness doesn't reply. Kurt Sansone
11:12 “This is why it was important to seize the servers, because a private company, which opened secret Panamanian companies for Maltese PEPs set up an office at a ministry. This is the mafia state," Azzopardi says. Kurt Sansone
11:11 Abdilla: "I think some computers of Nexia BT were seized from a ministry building in the Egrant inquiry." Kurt Sansone
11:10 "I would have thought it was the OPM," chuckles the witness nervously. Kurt Sansone
11:10 This was the ministry of justice, suggests Azzopardi. Kurt Sansone
11:10 Abdilla: "Yes." Kurt Sansone
11:10 Azzopardi: “In the Nexia BT investigation, had it been established that Nexia BT had an established presence in a ministry after 2013. Do we agree?” Kurt Sansone
11:09 Lofaro: "I would have picked him up and put him on police bail or something." Kurt Sansone
11:08 The witness appears lost for words. "It’s a difficult question," Abdilla says. Kurt Sansone
11:08 There was a large protest, Azzopardi points out. “How come the police didn't act? If I put out an advert in the Sunday Times announcing that I will be carrying out a hold up, wouldn't the police pick me up?" Kurt Sansone
11:07 Abdilla: "None I think." Kurt Sansone
11:07 Azzopardi points out that in 2016 Daphne Caruana Galizia had mentioned Neil Chennoweth of the ICIJ as having mentioned Maltese PEPs. “How many investigations were triggered by her writings?” Kurt Sansone
11:06 Abdilla says he was pushing for 22 investigators at the ECU at the time. “At the moment, there are just four, with another eight expecting to finish training soon.” Kurt Sansone
11:05 Abdilla: "Had we had the expertise and resources we have now, then we could have functioned better." Kurt Sansone
11:04 Abdilla explains that the police came across Cifidex from a transaction with 17 Black. More evidence emerged from electronic equipment seized by the police. Kurt Sansone
11:03 Abdilla is asked about the Enemalta wind farm deal in Montenegro. The State utility company had bought the shares of a wind farm project from Cifidex. Kurt Sansone
11:02 Abdilla: "If I had to bet, the documents seized appeared authentic and genuine." Kurt Sansone
10:56 Abdilla says as a consequence, a number of people of interest were identified for questioning. Kurt Sansone
10:56 Abdilla says the documents were sent to Dubai for authentication. "I cannot take a document that I had never seen the likes of before and say this is genuine." Kurt Sansone
10:55 Said Pullicino asks him about the Memorandum and Articles of 17 Black seized from Yorgen Fenech's house. Kurt Sansone
10:55 Abdilla: "I was not informed." Kurt Sansone
10:55 Madame Justice Lofaro: "I find it hard to believe that the head of the Economic Crimes Unit was not involved." Kurt Sansone
10:54 Abdilla says that he was not involved. Kurt Sansone
10:54 Azzopardi asks why the police had initially told the media that there was "no case " on Pilatus Bank and then after Muscat had filed a criminal complaint, they had acted. Kurt Sansone
10:53 Judge Abigail Lofaro remarks that it was unethical for the magistrates to give advice and had he come to her she wouldn't have given any advice. Magistrates are not for advice." Kurt Sansone
10:51 Abdilla continues: "When Egrant started, I had spoken to several magistrates and some had told me that they wouldn't have given me the warrant on the evidence I had. I had sought advice from several magistrates.” Kurt Sansone
10:50 Abdilla: "We would be careful to make sure we had all the evidence." Kurt Sansone
10:50 QUICK REMINDER: Caruana Galizia had exposed the Panama companies belonging to Konrad Mizzi and Keith Schembri in March. The international expose, Panama Papers, was released in April. Kurt Sansone
10:49 Azzopardi: "So we're in early May [2016] and despite all this evidence, you didn't feel the need to go to the duty magistrate and ask him for a warrant?" Kurt Sansone
10:48 Abdilla: "A magistrate." Kurt Sansone
10:48 Azzopardi: "From who?" Kurt Sansone
10:48 Abdilla: "Get a warrant." Kurt Sansone
10:47 Azzopardi: "When you want to seize something from someone's house as a police officer. what do you do?" Kurt Sansone
10:42 Azzopardi: “On 11 March 2016 Daphne Caruana Galizia publishes another story on Nexia BT and shredded paper. This had not raised a suspicion either?” Kurt Sansone
10:41 Abdilla mumbles something. Kurt Sansone
10:41 Azzopardi: “Had not the fact that the Ultimate Beneficial Owner for Egrant being revealed over Skype been a red light?” Kurt Sansone
10:40 Abdilla: “No.” Kurt Sansone
10:40 Azzopardi: “Daphne Caruana Galizia had written in April 2016 about the allegations. Had a police investigation been triggered immediately?” Kurt Sansone
10:39 Lawyer Jason Azzopardi takes over questioning. Kurt Sansone
10:39 Abdilla says he cannot recall whether it was Attorney General Peter Grech, who gave the advice. Kurt Sansone
10:38 Abdilla is asked whether the police sought advice. He sighs, saying he was not sure. "At one point advice was mentioned," he adds. Kurt Sansone
10:37 He is asked how much time had passed before he was instructed to report to the depot. Abdilla says it was around 10pm when he went to the depot. Kurt Sansone
10:36 Abdilla is asked again at around what time he had called the police commissioner on the night of Pilatus Bank. He replies it was around 8:30pm and 9pm. Kurt Sansone
10:35 Abdilla: “Hearnville, Tillgate Konrad Mizzi, Keith Schembri – we had investigated these. Rogatory letters to Panama requested information about this.” Kurt Sansone
10:34 He is also asked about the delay in seizing the bank's servers, after the Panama Papers publication in 2016. Comodini Cachia asks: Had the police investigated the information about the Panama Papers and whether Egrant had a connection with the Panama Papers? Kurt Sansone
10:33 Abdilla says he had already explained in a previous sitting. His reply is taken down as a refusal to answer. Kurt Sansone
10:33 Comodini Cachia: “How do you explain that the police took action only on a criminal complaint by the Prime Minister?” Kurt Sansone
10:26 Therese Comodini Cachia points out that there was a report by the FIAU suspecting money laundering a year before. Kurt Sansone
10:26 Abdilla gives a long-winded answer, but fails to answer the question. He says it is normal to communicate on Skype. Kurt Sansone
10:25 Mallia: “Did the police ask Brian Tonna to whom had he given the company name to over Skype?” Kurt Sansone
10:24 Abdilla says he is not sure whether Ali Sadr owned a property in Malta, but the Pilatus Bank owner doesn't have an ID card. Unless an in-depth investigation is carried out, the police would not know about it, Abdilla says. Kurt Sansone
10:22 Abdilla says on the day that the blog post was published claiming Egrant belonged to the wife of the prime minister and that there were documents at Pilatus Bank, the PM had filed the criminal complaint. Kurt Sansone
10:21 Abdilla gives an account of the police actions to seal the bank. The first person to enter the place was Magistrate Aaron Bugeja. Employees of Nexia and Pilatus had to wait outside. Abdilla says. Kurt Sansone
10:21 Abdilla: “You had to be living in the situation.” Kurt Sansone
10:19 Said Pullicino asks Abdilla about the delay in moving in on the bank. “Hadn't this given Sadr time to destroy evidence?” Kurt Sansone
10:18 Gatt was the prime minister's personal lawyer, he explains. Kurt Sansone
10:18 Abdilla: “At around 10pm that day Dr Edward Gatt had come with the criminal complaint by the Prime Minister. It was about allegations of defamation and possible money laundering.” Kurt Sansone
10:17 The witness says he cannot confirm this, but adds that he had called the commissioner on his mobile phone. Kurt Sansone
10:16 "He was at a meal at Mġarr, wasn't he?" asked Judge Abigail Lofaro. Kurt Sansone
10:15 Abdilla says the police had spoken to the cameraman, journalist and editor, all of whom confirmed that it wasn't a live feed. Abdilla says he had just arrived home when he saw the video. He had called up the police commissioner or deputy police commissioner Silvio Valletta. Kurt Sansone
10:14 Questioning turns to the video of Ali Sadr leaving the bank late at night. The Pilatus Bank owner had been filmed by a NET TV crew exiting the bank with luggage. Kurt Sansone
10:10 Abdilla says that even the remits of the experts, forensic accountants and IT forensics wasn't limited to Egrant. A list of keywords was given to them, not just Egrant, Abdilla adds. Kurt Sansone
10:09 Abdilla: "Whilst the scope of the inquiry was quite narrow we went into great detail... Brian Tonna [of Nexia BT] said he had bought it off the shelf in case a client needed it. We couldn't find any evidence contradicting this fact. This includes all the documents from the Panama Papers, the computer experts and so on." Kurt Sansone
10:08 Former chief justice Joseph Said Pullicino asks a question about the ownership of Egrant. Kurt Sansone
10:07 Abdilla: "Although I can't be precise, we definitely looked into it. Rivera was spoken to more than once... I can't say exactly what Rivera said, it is slightly impossible." Kurt Sansone
10:06 Mallia: "You have evidence right under your nose… You have Rivera saying that confidential documents which left the bank and you just left it at that?" Kurt Sansone
10:04 Abdilla: "I can't really tell. There were two inquiries, one by Magistrate Consuelo Scerri Herrera and Magistrate Doreen Clarke." Kurt Sansone
10:04 Mallia: "You are telling me that you ignored it completely." Kurt Sansone
10:03 Abdilla: "I don't exclude that Rivera didn't testify about this in the Egrant inquiry. We spoke to many people. More than likely, during Egrant, he was spoken to about it." Kurt Sansone
10:02 Lawyer Therese Comodini Cachia, who represents the Caruana Galizia family, has just walked into the courtroom. Kurt Sansone
09:59 Abdilla: “I was not hands on involved at the time and had delegated to an inspector. I’m not 100% sure but he could be talking about correspondence.” Kurt Sansone
09:58 Mallia: “Had you asked him what these confidential documents and information that he was so upset about were?” Kurt Sansone
09:57 Abdilla: “No.” Kurt Sansone
09:57 Mallia: “Had the police asked Rivera what he meant by ‘having its reputation threatened by false and defamatory allegations?’” Kurt Sansone
09:56 Abdilla says that in the course of those weeks, the magistrate and himself would be looking at every article in the media, the first thing in the morning, for possible leaks... leads in the investigation. The magistrate had sent for several journalists too, he says. Kurt Sansone
09:54 Abdilla says that Rivera had filed a police report on the "leaks". The "leak" in the statement refers to the compliance visit by the FIAU to the now defunct bank. A copy of the statement was not given to inquiring magistrate Aaron Bugeja at the time, he adds. Kurt Sansone
09:53 Abdilla says that the police did not question him about the statement that was just read out. Riviera was present for all searches at the bank. Kurt Sansone
09:51 Mallia asks him whether he had spoken to Rivera about the statement. Kurt Sansone
09:50 Abdilla says he spoke to Luis Felipe Rivera from Pilatus Bank, and all the present and past employees of the bank at the time, at length. Kurt Sansone
09:49 The retired judge reads out a statement from 11 May 2017: "Pilatus Bank on May 8, 2017 has commenced legal actions in the USA for defamatory actions. The bank will pursue all parties and individuals for legal action..." Kurt Sansone
09:49 Judge Emeritus Michael Mallia informs the witness that he will ask him about a statement released by Pilatus Bank. Kurt Sansone
09:48 Former Economic Crimes Unit police chief Ian Abdilla takes the witness stand. Kurt Sansone
09:40 Good morning. Kurt Sansone