PAC testimony of Yorgen Fenech suspended, pending outcome of criminal proceedings

The Public Accounts Committee has agreed to suspend the hearing of alleged mastermind Yorgen Fenech, after lawyers requested that he testify only after criminal proceedings against him are over.

Fenech is accused of commissioning the assassination of journalist Daphne Caruana Galizia.

Before Fenech was sworn in, defence lawyer Charles Mercieca informed the committee that the alleged mastermind would not be sworn to testify, saying that the NAO report under discussion pertained to the alleged motive informing the criminal charges against him.

“Since the alleged motive for the crime is the subject under discussion in this committee, we consulted Erskine May, which says ‘committees have suspended inquiries in progress because witnesses have been charged with crimes connected to the subject matter under inquiry…’”

Mercieca said the committee should suspend Fenech’s testimony, pending the outcome of the criminal case against him. At one point, Fenech moved to pass a comment to chairman Darren Carabott, who called him to attention that he could not speak before taking an oath.

“He is fighting for his life in court,” Mercieca told Carabott, saying that was the forum in which Fenech should be made to speak.

After a 10-minute recess, Mercieca verbalised his request for the hearing to be suspended, citing the Erskine May, as well as the Speaker’s rulings of 25 November, 2019, 26 November 2019, and 16 June, 2020.

Mercieca said the compilation of evidence against Fenech had already indicated that matters related to Electrogas contract will form part of the criminal trial against him.

Mercieca however said that Yorgen Fenech wanted to testify before the committee only after the criminal proceedings against him are concluded.

Effectively the PAC hearings on the Electrogas contract will continue until after a criminal court concludes proceedings in the charges against Fenech.

Carabott said in a parting shot that it was something “exceptional” that the use of Maltese taxpayers’ money was now the subject of a criminal case in the court of law. Labour MPs replied wryly to his observation. “I trust this committee will not be turned into some political football,” Andy Ellul said.

15:06 The committee is adjourned. This live-blog ends here. Matthew Vella

15:06 Carabott says in a parting shot that it is something “exceptional” that the use of Maltese taxpayers’ money is now the subject of a criminal case in the court of law. Labour MPs reply wryly to his observation. “I trust this committee will not be turned into some political football,” Andy Ellul says. Matthew Vella

15:04 Effectively the PAC hearings on the Electrogas contract will continue until after a criminal court concludes proceedings in the charges against Fenech. Matthew Vella

15:03 There is agreement in the Committee that the hearing be suspended pending the conclusion of the criminal proceedings. Matthew Vella

15:02 Carabott says the motive being cited by the lawyers is that Daphne Caruana Galizia was to be eliminated to prevent her from publishing a story related to the Electrogas contract. Matthew Vella

15:00 The committee remains in session. Matthew Vella

15:00 Mercieca says Yorgen Fenech wants to testify before the committee only after the criminal proceedings against him are concluded. Carabott asks Fenech and his lawyers to leave the committee room to consult MPs on the request. Matthew Vella

14:58 Mercieca says that the compilation of evidence has indicated the gathering of evidence that will be presented in the criminal trial of Fenech, related to the Electrogas contract. Matthew Vella

14:56 Carabott wants certainty on the lawyers’ insistence that the alleged motive is referencing the subject matter under consideration. Matthew Vella

14:54 “In view of the provisions of the Erskine May, as well as the rulings of the Speaker of 25 November, 2019, 26 November 2019, and 16 June, 2020, the committee is being asked that at this stage, pending the outcome of the proceedings presently sub judice, it does not hear the testimony of Fenech.” Matthew Vella

14:52 “As the committee knows, Yorgen Fenech stands accused of a criminal act, where the alleged motive according to the prosecution, is the subject under consideration by this committee... the Standing Orders say that committees have suspended committees in progress because a witness has been charged with criminal offences related to the subject matter of the inquiry; or have decided not to take evidence from a particular witness in the course of an inquiry, because the committee has been informed that the witness could also be a witness in a pending criminal or civil proceedings.” Matthew Vella

14:48 Lawyer Charles Mercieca verbalises his request to the committee. Matthew Vella

14:47 The hearing resumes as Fenech and his legal team re-enter the committee room. Matthew Vella

14:40 The standing orders can be found at this link. No 197 states that “In all cases not provided for by these Standing Orders, resort shall be had to the rules, forms, usages and practice of the Commons’ House of Parliament of the United Kingdom, which shall be followed as far as they can be applied to the proceedings of the House, with due regard to the special nature of the Constitution.” Matthew Vella

14:34 Fenech is accompanied by his lawyers outside the committee room to consult on the Standing Orders and other cases in court. The hearing will resume within 10 minutes. Matthew Vella

14:28 Carabott suspends the committee hearing until all parties consult previous rulings and Standing Orders. Matthew Vella

14:27 Carabott requests the rulings cited by Mercieca which claim that a suspension of the hearing would be justified. Matthew Vella

14:24 Fenech tells Mercieca that the reason for him not to testify is that his fight is in the court of law. “He is fighting for his life in court.” Matthew Vella

14:24 Mercieca says that in such analogous situations as this hearing, the committee hearing should be suspended (citing practice in the UK House of Commons). Matthew Vella

14:23 Mercieca cites Fenech’s Constitutional case against the Attorney General, to identify where the alleged motive has been referenced. Matthew Vella

14:21 Darren Carabott is interrupted by Fenech at a point to pass comment, and Carabott calls him to attention that he has not been sworn to testify. Matthew Vella

14:20 Mercieca cites the Standing Orders, and asks the Committee that given the criminal proceedings, it suspends Fenech’s testimony, pending the outcome of the criminal case against him. Matthew Vella

14:18 Charles Mercieca speaks for Yorgen Fenech: Since the alleged motive for the alleged crime is the subject under discussion in this committee, we consulted Erskine May: ‘committees have suspended inquiries in progress because witnesses have been charged with crimes connected to the subject matter under inquiry…’ Matthew Vella

14:17 There are security personnel guarding the witness both inside the committee room as well as outside. Matthew Vella

14:16 Fenech is accompanied by lawyers Charles Mercieca and Gianluca Caruana Curran. Matthew Vella

14:16 Fenech was escorted to the House of Representatives under tight security, with the entire perimeter manned by armed personnel. Matthew Vella

14:14 Yorgen Fenech called to testify. Matthew Vella

14:14 Also present is Auditor General Charles Deguara, as the main representative for the NAO, which authored the inquiry report that is under discussion here, namely the investigation on the Electrogas contract. Matthew Vella

14:13 MPs in today’s PAC: Clayton Bartolo, Naomi Cachia, Glenn Bedingfield, Andy Ellul (PL); Darren Carabott, chairman, Graham Bencini, Robert Cutajar (PN) Matthew Vella

14:11 Good afternoon, we are live at the Public Accounts Committee today, where alleged mastermind Yorgen Fenech is expected to testify. Matthew Vella

This was Yorgen Fenech’s first appearance out of court, and his first chance to speak in a public forum.

The PAC hearings of former chief of staff Keith Schembri had to be suspended after Schembri filed a constitutional case, claiming a breach of his rights when PAC chairman Darren Carabott and two Nationalist MPs filed a criminal report alleging perjury.

Schembri is believed to have used an offshore company in Panama, surreptitiously opened after 2013, that had also identified another secret offshore company belonging to Fenech, 17 Black, as a potential target client according to correspoondence from his auditors.

17 Black, located in Dubai, is believed to have been used to channel illicit payments from Fenech to other players connected in some way to the €200 million Electrogas bid, which includes partners from Azeri state gas company SOCAR, and German company Siemens.

Schembri resigned from chief of staff to former prime minister Joseph Muscat in December 2019 soon after the arrest of Fenech, which came on the heels of the arrest of Melvin Theuma, a pardoned criminal who acted as the go-between between Fenech and the executors of the assassination, brothers George and Alfred Degiorgio.