PN leader Adrian Delia declared to a due diligence panel that he still had material tax balances due as well as interest and charges on those balances as of July, the due diligence report published by the party shows.

Delia has repeatedly declared in public that he is up to date on his tax dues, having settled all arrears in 2018.

However, a statement of affairs as at July 2020 presented by Delia to the panel showed he still owed money to the taxman.

The panel also heard how leadership contender Bernard Grech had faced his own tax problems and did not provide the panel with a “complete picture of his tax issues”.

Clarification about Grech’s contested tax bills was later provided to the panel as well as a tax compliance certificate issued by Inland Revenue.

The panel noted “with regret” that Grech only regularised his tax position after a number of years.

The panel emphasised about Delia and Grech that besides being a legal obligation, every citizen has a moral and ethical duty to file tax returns and pay all tax due in a timely manner. 

“In this regard politicians should lead by example and, if anything, should be judged by higher standards”, the panel said. 

The panel slammed a declaration by the PN candidates’ commission that both Grech and Delia had been deemed suitable to contest the election whilst the due diligence process was still ongoing.

Commission head Colin Bowman had made the declaration on the PN’s media channel on September 1, with the due diligence process only being completed on September 12.

The panel made it clear from the outset in its report that its work was limited by a number of factors, including access to information, lack of resources and the six-week time limitation.

Whilst the section in the report on Grech only spanned two pages in which his tax issues and “minor procedural shortcomings” with the management of his clients account as a lawyer were touched upon, the section on Delia was 13 pages long.

The panel delved into four main “allegations” and “episodes” about Delia spanning from his link to a Soho prostitution ring and his communication with 17 Black owner Yorgen Fenech to claims he “kidnapped” a Birkirkara goaler to interrogate him about potential corruption back when he was still president of Birkirkara football club.

It said if press reports about the Financial Intelligence Analysis concluding an account Delia had in Jersey may have been used for money laundering are true, it would render the Opposition leader unfit for public office.

On the flip side, the panel said if Delia’s rebuttals are correct, and the press reports wrong, Delia would have had his reputation “unjustly tarnished.”

Times of Malta last year provided a detailed breakdown about the FIAU’s findings and has also reported how a subsequent police investigation into the report stalled due to the passage of time from when the account was first opened.

Communication with Fenech

On Delia’s messages with murder suspect Yorgen Fenech, the panel said that if it was true he continued to communicate with Fenech after he was revealed as the owner of 17 Black, it would constitute a serious lack of judicious behaviour by the PN leader and undermine his credibility and that of the party in the fight against corruption.

Delia stated during the interview that there was “no record” of such communication on his phone.

He also told the panel that such leaks could only have come from the police, and said that out of the thousands of messages exchanged by Fenech with government officials, it was only his exchange of messages, “which he continued to doubt”, which was leaked.

Goalkeeper ‘kidnapping’

The panel tackled claims that Delia and other Birkirkara officials had interrogated a former Croatian goalkeeper over alleged improper behaviour by stating the matter could have been handled in a more “formal and professional manner”.

It said claims by the goalkeeper that the behaviour of the Birkirkara officials constituted “kidnapping” did not seem to be the case, as he was not questioned against his will.

Delving into claims that Delia took an authorised €86,000 cut on a loan he helped secure for businessman Boris Arcidiacono after a dispute over a success fee, the panel said the concept of charging a “success fee” for procuring a loan from a commercial bank is at best, ethically dubious.

‘Ongoing task’ of servicing loans

The panel delved into Delia’s finances, noting that meeting his current financial commitments is an “ongoing task”. The panel confirmed Delia’s declaration of having around €600,000 worth of outstanding loans.

Delia told the panel that a large part of his financial commitments would be sorted should he sell a second property he owns.

The panel also brought up a €7.2 million debt that the PN leader is liable for in connection with a property development venture in Gozo.

Delia told the panel that the company in question, Mġarr Developments, should have finalised the sale of three other apartments by the end of the year. He also stated that once the remaining two apartments and nine garages are sold, the company will be able to pay all outstanding liabilities to HSBC.

The panel said it found it unusual that a project of this nature extended over 14 years and that accumulated losses had been recorded for most of this period despite favourable market conditions.

Questions arose from the panel about an indication by Delia that the company was considering the possibility of listing on the Malta Stock Exchange.

The report, which can be read in the pdf link below, was published by PN's administrative council after it unanimously approved a motion moved by Delia for its publication.

Earlier in the week, the PN's due diligence committee wrote to both Delia and Grech to explore ways of making their suitability report public. 

While Grech gave the commission the green light to publish the report, Delia had said this should only be done “through the proper channels”.