For the first time in the Vitals case, the prosecution shows some teeth, expressing certainty and confidence in their case
Lead prosecutor expresses confidence in Vitals case
13:37 | Sitting adjourned
Thanks for following our live blog from Hall 22. The sitting has been adjourned and the next hearing is scheduled for Tuesday, 25 June, 9.30am.
Julian Delia, Michael Kaden
13:30 | Lawyer Veronique Dalli
Lawyer Veronique Dalli claims in her rebuttal to Refalo that the process through which Taomac is being accused is invalid because the company and its representatives were not given the opportunity to state their version of events.
She claims that court experts did not ask for Taomac Ltd’s testimony, nor did the inquiring magistrate, nor did the police.
The lawyer reminds the court that Taomac is accused solely of money laundering in the inquiry report, but Taomac’s accounts reflected that just €62,500 were left in their accounts as suspected money laundering proceeds.
She dismisses the prosecution’s arguments as mere conjecture and “suspicions”, arguing that Taomac’s “suspicious” transactions were not scrutinised by questioning the company’s representatives directly.
Continuing her argument against the prosecution’s case, Dalli says that nobody bothered to look into the fact that Malta Enterprise had actually ordered Taomac to cease from its involvement in the case.
She claims that Taomac’s exit from the concession was deemed suspicious by the prosecution without any further effort to look into why this was the case.
Dalli also claimed that Taomac had been transparent with Malta Enterprise about a separate criminal investigation they were facing in Italy, which led to Malta Enterprise’s decision to ask Taomac to abandon the arrangement. ME then told them to sell their shares to whoever else might be found to replace them.
The magistrate points out that the main argument against Taomac is related to the misuse of funding that was meant to go into the concession.
Dalli rebuts that Taomac Ltd had put up their own funding as part of its investment in the concession but does not respond directly to the claim of misuse itself.
Up until 2015, Taomac was actively involved in this project.
She mocks the prosecution’s argument by pointing out that Taomac Ltd is being accused of a mere few tens of thousands of money laundering proceeds in the context of others who are being accused of laundering millions.
Dalli insists that Taomac is completely extraneous to Vitals Global Healthcare and the monies that were siphoned through VGH, adding “the inquiring magistrate’s report had nothing but suspicions [about Taomac]”.
Julian Delia
13:12 | Francesco Refalo, lead prosecutor
For the first time in the Vitals case, the prosecution shows some teeth, expressing certainty and confidence in their case.
Lead prosecutor Francesco Refalo of the office of the Attorney General speaks about the prima facie stage in general.
He says that the level of evidence required is merely establishing probability and that in this case, we have an inquiry report which everyone has had the opportunity to read and which has reached conclusions after being assisted by a large number of experts.
These experts were confirmed and validated by this same court. Citing court precedent, Refalo says that the court previously stated that a magistrate must give orders to continue a case beyond the prima facie stage if doubt about innocence remains.
Elaborating on his point, Refalo cites further precedent: in another case, the court stated that if there is enough evidence to prove one charge, the court must consider this first and foremost before any lack of evidence related to other charges.
Speaking about the charges levied against Technoline, Refalo says that the inquiry’s report was very detailed on the wrongdoing committed by Technoline.
He refers to the loan given to Gateway by Steward so Gateway could acquire GAE Holdings and TBC Holdings and therefore acquire Technoline in the process.
This, including the 5 million loan, was all paid through the fraudulent theft of money which was meant for the concession.
“Incidentally, Technoline was given the supply contract in April 2017 right after it became fully owned by Gateway”, after which Technoline became the sole supplier to the whole concession. Regarding Technoline, the prosecution is certain that the prima facie evidence stage is more than satisfied.
Refalo now turns to MTrace: listing the charges while referring to the inquiry, more than 2.3 million euros meant for the concession were diverted to MTrace.
He says that, based on the testimonies we heard yesterday, MTrace only began developing as a company after intervention from Malta Enterprise, and that funding was diverted to it in a fraudulent manner.
The inquiry noted that MTrace did not have any funding to pay its end of the bargain with Malta Enterprise, although MTrace was meant to pay 31%.
The lead prosecutor says that MTrace CEO Brian Bondin was central in the process of trying to salvage the company’s flailing credit lines, including through chasing outstanding payments from Technoline and other creditors.
In regards to the auditors Jonathan Vella and Chris Spiteri, he notes that the inquiring magistrate learned that Vella was in contact with a number of individuals who were accused of similar crimes which they are being charged with.
Vella and Spiteri were also auditing Bluestone’s accounts. They were clearly in the know about what was happening but they chose to do nothing about it, Refalo says.
Taomac Ltd had sold its shares in MTrace to VGH’s Jersey company for the same price it had bought them for. Effectively, Taomac held those shares for third parties, the prosecutor charges to the evident disapproval of the company’s lawyer Veronique Dalli across the hall, who signals she wants to contest his claims.
Refalo argues that there is more than prima facie evidence to suggest wrongdoing at Taomac.
Generally, the lead prosecutor speaks in a confident tone: “We have detailed court verdicts, even more detailed findings in this report, meaning we have gone beyond prima facie. This is especially relevant since the inquiring magistrate explicitly said that these individuals must be charged with these crimes, not just recommending charges”.
Julian Delia
13:00 | Almost done for today
The lawyers for Joseph Muscat’s lawyer submit that Muscat is not contesting the evidence at prima facie stage for the sake of expediting the case. Konrad Mizzi and Keith Schembri’s lawyers say the same.
Lawyers Stefano Filletti and Gianella De Bono state they bind themselves to the court’s verdict on the matter. Lawyer Jason Grima agrees with them. Lawyer Arthur Azzopardi also binds himself to the court’s verdict.
Keith Schembri’s father Alfio is excused early from the hearing due to health related reasons and allowed to leave.
Sciacca Grill and Gateway Solutions are going to contest the court’s decision on prima facie.
The next hearing is scheduled for Tuesday, 25 June, 9.30am.
Julian Delia
12:44 | Malcolm Mifsud, auditor
Independent auditor Malcolm Mifsud Witness is asked about loans given to his client Gateway, and about their balance. He says that up until 2022, Gateway had 690,325 euros.
Originally, the company was loaned about 5 million euros, though he says he does not remember the exact terms of the loan agreement and he is asked to look them up for the court’s benefit.
Mifsud is asked about the interest on the loan. He consults his 2022 audit, confirming that the loan was paid back in full by December 2023.
814,511 euros was paid in interests over and above those 5 million to be returned.
Lawyer Arthur Azzopardi notes that some of the documents exhibited by the witness were not included in the inquiry report.
Mifsud is handed a stack of papers, which he identifies as private agreements between Steward and Gateway. They are addendums which outlined the status of the loan and outstanding balances every few months as the loan was being repaid.
Julian Delia
12:39 | Claudette Fenech, MBR
Witness Claudette Fenech from the Malta Business Registry submits further company documentation related to Gateway Solutions Ltd. She says that audited accounts were not submitted.
Julian Delia
12:30 | Anthony Cremona, RPB
A former member of the government’s Radiation Protection Board, Anthony Cremona, is the next witness to be questioned.
He says that in 2016 the board received a notification from MTrace in relation to the company’s intent to manufacture radioactive materials that would be used in the Cyclotron project.
The board evaluated MTrace’s application and asked for a few clarifications. In March 2017, they received an additional notification about shareholder changes and a few additional technical details.
However, the application process stopped at a building inspection carried out by the board in April 2017.
There were a few more meetings later in 2017, and the board commissioned foreign experts to assist with the initial inspections.
“Then, everything seemed like it suddenly stopped”, the witness says.
The witness confirms that up until 2017, the facility was not even close to being operational.
Cremona is handed a set of photos from a site inspection. He says he recognises the equipment related to the Cyclotron but that he didn’t see the machine itself after it was installed.
Julian Delia
12:28 | Anthony Serracino Inglott
The Malta Medicines Authority’s CEO is back in the witness stand, after checking on the authorisation, confirming there was a request for it in 2017 and that the specific market authorisation for Urium was issued in 2019. The applicant was Jean Francois de Luis.
The application was filed in France, with Malta listed as one of the countries in which the authorisation would be in force.
The witness says that it might be the case that the authorisation was issued in preparation for the development of a specific product, like the one that was imported from Urium, to substitute for the chemicals which the cyclotron was not yet able to produce at the time.
Lawyer Arthur Azzopardi asks about the specific product and what it is used for. The witness says it has multiple uses but that it is used most for diagnosing cancer, among other diseases.
Serracino Inglott explains that the isotopes are used mainly for medical imaging purposes.
The magistrate asks the witness about whether any other individuals are associated with the request that was made besides Francois de Luis, and he replies that he is not certain since such application forms would require a lot of detail. He assumes that there would have been other people involved with this process.
Julian Delia
12:05 | Sitting suspended
The sitting has been suspended for 15 minutes to allow an interpreter assisting in this sitting to also perform duties in a separate sitting.
12:00 | Alexander Camilleri, ERA
ERA Deputy Director Alexander Camilleri is taking the witness stand. At the Environment and Resources Authority, he is in charge of impact assessments.
The Cyclotron project was first discussed in ERA offices in March 2017 following discussions which were previously held within the former Malta Environment and Planning Authority.
ERA received applications from MTrace for environmental permits for the development of the Cyclotron facility.
Camilleri speaks about the details of the email exchanges held at the time between ERA and MTrace.
He says that ERA was satisfied that all relevant criteria set out in their guidelines were adhered to.
The applicant was Brian Bondin on behalf of MTrace, registered at Life Sciences Park.
ERA insisted on an EIA due to the complex nature of the works involved. This stalled all initial progress that was first seen in earlier exchanges.
The initial applicant (MTrace) did not follow up on the EIA requirements, and they even contacted the authority to express their concerns about the requirements of the EIA.
However, nothing came out of it and there is nothing to exhibit in terms of documentation.
Julian Delia
11:52 | Anthony Serracino Inglott, Medicines Authority
Anthony Serracino Inglott, CEO of the Malta Medicines Authority, is the next witness questioned by lawyer Arthur Azzopardi.
Lawyer: “Did you issue permits for the Cyclotron facility at the Malta Life Sciences Park?”
Witness: “No, we did not issue any permits because there were no applications.”
Lawyer: “Malta Enterprise?”
Witness: “No applications from them either.”
Lawyer: “What about MTrace?”
Witness: “Not that I’m aware of.”
Serracino Inglott says that, prior to this case, he was not aware of the existence of MTrace at all.
The witness is asked about the process through which a pharmaceutical company obtains market authorisation for a specific product.
He explains that one of the ways this authorisation is issued is through the authority he heads, though there is also the European Medicines Authority which is the supranational authority in the EU.
Lawyer Azzopardi asks about a particular marketing authorisation, MA1010-0102, applied for by Urium International Ltd, “does the name Andrea Marsini remind you of anything?”, and Serracino claims “It does not”.
Magistrate Montebello cuts to the chase: she asks the witness directly about whether any permits were required from his authority for the Cyclotron machine and its chemicals.
The witness replies that this is not something that requires market authorisation. MDH’s pharmacy, for example, would need a different permit to dispense or use such a product, but no permit was issued for the Cyclotron project.
He is asked to double check by making a call to his subordinates at the authority to ensure whether any authorisation was issued at all. His testimony is suspended for a few minutes.
Julian Delia
11:40 | Defence request
Lawyer Arthur Azzopardi makes a request to the court to take note of the fact that the ‘Cyclotron offices’ are at the Life Sciences Park.
The court denies this request as it is still in the process of hearing the defence’s witnesses, saying this is a premature request at the prima facie stage.
Though the court can order evidence to be provided as requested, it is considered that this particular bit of evidence is not necessary for the court to make its decision at this stage.
Julian Delia
11:35 | Roderick Livori, PA
Roderick Livori, senior planning officer in the legal office of the Planning Authority, takes the witness stand.
He is asked about permits which were issued to MTrace and Malta Enterprise in relation to the Life Sciences Park.
Livori confirms that planning authority permits were issued, saying that there are around ten permits for the site in total.
The witness is unable to provide further information other than the planning permits which are publicly available, and the testimony is suspended due to the fact that such details ought to be reserved for after the prima facie stage, magistrate Rachel Montebello points out.
Julian Delia
11:31 | Proving legitimate work
Lawyer Arthur Azzopardi now explains the point of the defence’s line of questioning, after the magistrate asks why he is asking very specific questions.
Azzopardi claims that the inquiry report describes invoices and documentation related to the Life Sciences Project as fraudulent.
He is trying to prove that the works carried out by these companies are genuine and that the money that was paid out for legitimate work rather than bogus invoices.
Julian Delia
11:27 | Emanuel Baldacchino, contractor
The next witness is contractor Emanuel Baldacchino, who confirms he did some work for MTrace at Life Sciences Park, specifically on the construction of the lab.
Baldacchino says that when he first started working on the site, it was “merely a garage”. His works followed the architect’s instructions on foundation building and brick laying.
He is asked about the details and specifications of works he carried out but he does not remember the details.
Julian Delia
11:20 | Recap
So far we’ve heard witnesses from various companies who delivered services to MTrace for the Life Sciences Park, providing documentation of their services.
The project cost millions to set up, but when Vital’s successor Steward Healthcare decided to drop the project, it was sold to Malta Enterprise for around €6.9 million.
Years later, the equipment remains unused at the Life Sciences Park adjacent to Mater Dei Hospital.
Michael Kaden
11:16 | Adrian Mallia, ABI Associates
Adrian Mallia representing ABI Associates Environmental Consultants Ltd takes the witness stand.
ABI is a planning and environmental consulting company which was set up in 2005.
The witness confirms that the company did some work for MTrace in relation to the Life Sciences Park, as well as work on behalf of Malta Enterprise for the same project.
In 2009, Malta Enterprise asked them to carry out environmental impact assessments (EIAs) and transport impact assessments (TIAs) in relation to the outline development permit for this project.
In 2011, a full development application for phase 1 was filed, and another statement was drafted by ABI in 2012.
In July 2015, MTrace commissioned them to assist with the Cyclotron project, again to carry out impact assessments. A few days later they were commissioned and ERA asked ABI to carry out further studies, which they did.
By August 2015, they were told to invoice MTrace, which they did. They were paid over two years later and they had to chase them for a minor payment that amounted to about 650 euros.
The witness submits all relevant documentation to the court before stepping off the stand.
Julian Delia
11:09 | Gianluca Lubrano, TS
Yet another witness, a representative of a company named TS, testifying on a November 2017 shipment that was sent from Ravenna to MTrace in Malta. The package was sent from Comecer Spa, one of the radioactive isotope suppliers. They received two containers.
The witness submits the invoice and arrival notice that substantiates the details he’s given to the court.
Sealand AS were the payees for the services provided by TS.
Julian Delia
11:04 | Mario Ciantar, White Brothers Ltd
Mario Ciantar, representing White Brothers Ltd, takes the stand. White Brothers do freight forwarding and logistics, including crane lifting. The company carried out work related to the Life Sciences Park, tasked to support MTrace with the logistical aspect of transporting chemicals to and from the location.
Ciantar presents an invoice to attest to the works carried out on behalf of MTrace.
Julian Delia
10:58 | Brian Fenech, site officer
Brian Fenech, health and safety practitioner, says he was contracted by MTrace as the site officer for Life Sciences Park between 2017 and 2018. He says he carried out inspections on the workplace to ensure all was in order.
Specifically, he was overseeing structural operations related to the development of the park. Construction on the Cyclotron facility had already started by the time he was hired. When the equipment first arrived in December 2017, he was just about to leave this role.
Asked by the prosecution about who hired him, Scerri says it was Brian Bondin from MTrace.
The witness confirms he specifically saw the equipment in place with his own eyes.
Julian Delia
10:54 | Alfred Scerri, Terracore Ltd
Terracore Ltd director Alfred Scerri confirms that his company carried out some concrete testing and drilling for water drains for MTrace in relation to the Life Sciences Park project.
Asked about yesterday’s witness perit Karl Farrugia, Scerri says Terracore has carried out multiple projects with his firm.
10:50 | Firetech Malta Ltd
The next witness is the director of Firetech Malta Ltd. She says that MTrace is not their client but they did provide mechanical services to Malta Life Sciences Park since 2014. Their services were provided on a recurring basis until 2017 and then they were subcontracted for specific jobs here and there.
The director’s testimony is suspended since she was expected to hand over certain documentation which she has not at hand, so she will testify later.
Julian Delia
10:48 | Arthur Azzopardi, GO plc
GO plc Chief Business Officer Arthur Azzopardi is the first witness of today’s sitting, confirming that the communication services provider offered MTrace an internet and telephone line service at Malta Life Sciences Park. Jesmond Silvio signed the contract on behalf of MTrace on January 2024. That’s all from this witness.
Julian Delia
10:45 The defence teams
Joseph Muscat is assisted by Vince Galea, Charlon Gouder, Ishmael Psaila, Luke Dalli, Etienne Borg Ferranti and Dominic Micallef.
Keith Schembri and Konrad Mizzi are assisted by Edward Gatt and Mark Vassallo.
David J Meli is assisted by Giannella DeMarco and Charles Mercieca, while Spiteri is assisted by Jason Grima.
Pierre Sladden and a number of companies are assisted by Arthur Azzopardi.
Franco Debono and David Bonello are counsel to Sciacca Grill Ltd, while Stefano Filletti is counsel to Adrian Hillman.
Other lawyers include Stephen Tonna Lowell, Shazoo Ghaznavi, Jessica Formosa, Veronique Dalli, Rachel Powell and David Bonello.
Attorney General lawyers Francesco Refalo, Rebekah Spiteri and Shelby Aquilina are prosecuting together with superintendent Hubert Cini and inspector Wayne Borg.
Michael Kaden
10:44 | Good Morning
Good Morning, Malta and Gozo. The court is in session and Julian Delia reports live from Hall 22. The magistrate walks in and the court starts, as usual, with its roll call of attendance.
Michael Kaden
