[WATCH] PN claim Sammut's fraud charges proof of 'institutionalised corruption'

Beppe Fenech Adami questions government's silence on court charges against former Labour treasurer • Video by Ray Attard

The arraignment of auditor Joe Sammut on charges of money laundering, fraud, misappropriation and forgery is proof that corruption has become "institutionalised", the Nationalist Party has claimed.

"More than ever before, Malta finds itself caught up in a web of criminality and corruption thanks to people close to the Labour Party," PN deputy leader Beppe Fenech Adami told a press conference, pointing out that Sammut had served as Labour treasurer between 1993 and 1994.

Sammut has been charged with setting up around 800 false companies as a means of helping Libyan nationals fleeing their country's civil war obtain residence permits.

Fenech Adami argued that the sheer scale of Sammut’s alleged operation is indicatory of corruption.

He questioned why Labour has not yet removed Sammut from the party and why the government has not yet explained how Sammut's fraudulent business had been allowed to operate for so long.

"The government's deafening silence is as worrying as the charges themselves, particularly since Sammut used to be in charge of Labour’s finances," he said. 

Shadow economy minister Claudio Grech warned that this case could have serious repercussions on Malta’s reputation overseas and that it could scare off potential foreign investment.

“The government must provide a clear explanation as to how this operation was allowed to occur and state whether it will be changing any procedures involved in the registration of companies,” he said.

PN treasurer Alex Perici Calascione pointed out that police investigations into Sammut’s operations had uncovered a lack of due diligence into the registration of the allegedly fraudulent companies.

“The government is obliged to put everyone’s minds at rest that the system is functioning properly, and that any problems will be fixed,” he said. 

In a brief reaction, Labour accused the Nationalist Party of behaving negatively and of trying to tarnish people “through an antiquated style of politics”.

“We are proud that the government and the authorities are seeking justice, irrelevant of who the accused is,” the PL said in a statement.