Last updated 7.35pm with Strickland Foundation statement
A shareholder of Allied Newspapers Ltd said he will be seeking legal advice to establish how he could recoup the alleged sum of $6.5 million that has allegedly been defrauded from Progress Press.
Robert Hornyold-Strickland, who owns 13% shares in Allied, said he was disgusted and angry that Allied’s workers and editorial staff have been so betrayed and forced to work under such stress as a result of these allegations.
“I am however hopeful that justice will be done and am confident that the Times of Malta will survive this scandal. I, personally, will do everything within my means to help the staff through this difficult period. We will come through this stronger and better.”
The nephew of founder Mabel Strickland added: “If these allegations are proven, then I believe that all those who sat on the boards of Allied and Progress at the time these decisions were taken should be tendering their resignations as should the council of the Strickland Foundation who elected Adrian Hillman in the first place.”
Former OPM chief of staff Schembri has been charged with paying around US$5.5 million in backhanders to three men for the sale of printing machines to Progress Press, using convoluted transactions to mask the corruption and defraud the company. Two of those are former managing directors of Allied Newspapers.
Hornyold-Strickland added: “For many years I have been concerned about certain members of the management team at Allied Newspapers, and yet few people have actually wanted to listen to my concerns. Finally, it seems I am being vindicated. Those close to me, and personal friends, have been very supportive when they understood the real story of Mabel’s stolen legacy”.
Hornyold-Strickland wants 78% majority shareholding returned to the estate, claiming that Mabel Strickland’s key assets were improperly diverted upon her death in 1988. His claims have been contested by the Strickland Foundation.
“There has been no Strickland on the Strickland Foundation since my aunt died in 1988 let alone me (her carefully chosen heir). My aunt would be rolling in her grave.
“As Mabel’s sole heir, it is a fact that every attempt, by me, to be elected onto the board of Allied or the council of the Strickland Foundation has been blocked by either her two original executors (Guido de Marco and Joseph Ganado) or, after 2010, by the Strickland Foundation."
He said Hillman was the erstwhile best friend of Mario de Marco before being appointed managing director by the vote of the Strickland Foundation.
“Seen from outside, as a mere minority shareholder in Allied at the moment, the method by which directors are chosen and the purchase of the printing machinery are merely two of a number of issues that I had raised questions about.
"I have also questioned the financial probity of some past directors of Allied and members of the seemingly arcane Strickland Foundation that controls the newspaper group. We, as minority shareholders, have never been allowed to see the internal Adrian Hillman report although we were expected (indirectly) to pay for it. This is a scandal.”
'I was not present at general meeting'
In a statement, the chairman of Allied Newspapers Limited, Paul Mercieca said: The statement issued by Robert Strickland earlier today refers to an issue that is entirely between the Strickland Foundation and himself. This issue has, for many years now, been subject to court proceedings. I am very disappointed at the timing of this statement by a minority shareholder.
"I deem this statement to be totally inappropriate given the current circumstances," Mercieca said.
Meanwhile, Mario de Marco accused Hornyold Strickland of using the current "grave" circumstances impacting the Allied organisation "at which we are all angered" to take a cheap shot at the Strickland Foundation, himself and his family because of a long-standing feud.
"Mr Hornyold Strickland in his communique this morning, misleadingly left out the fact that he himself had in 2012 seconded the motion presented to the general meeting of the Allied shareholders for the appointment of Adrian Hillman as managing director of Allied Newspapers Ltd and Group Managing Director. The motion was approved unanimously by all the members present including Robert Hornyold Strickland. I was not present at the general meeting."
De Marco said it is pertinent to point out that contrary to the impression given, he was not a director of Allied Newspapers Limited nor of Progress Press Limited and never has been.
He said he is one of five members of the council of the Strickland Foundation and both Hillman and Buhagiar were appointed in their respective positions within Progress Press years before his appointment.
De Marco urged Hornyold Strickland not to mislead the public that the Strickland family is not represented at the Allied board level, when in fact his own brother has been an active member of the board of directors of the Allied Group since 1988.
"Robert Hornyold Strickland has over the past years persisted in his legal challenges to change Ms Mabel Strickland’s will... He moreover conveniently leaves out the fact that the courts have disagreed with his interpretation of her will and that he has appealed the judgement."
Strickland Foundation reacts
The Strickland Foundation said that like the rest of the nation it was shocked and saddened by the facts emerging in court particularly on the alleged involvement of ex-senior officials of Allied and Progress in suspected criminal activity.
“As the largest shareholder of Allied Newspapers Limited, the foundation is actively following the proceedings, to ensure that the rights at law of all shareholders are protected and safeguarded,” it said in a statement.
It noted that its council members, appointed at different points over the years, did not have any inkling of what was allegedly being plotted by two rogue directors “in the utmost secrecy” to the detriment of the Allied Group and the shareholders, including the foundation.
“If what is being stated in court is true, it is shameful that it happened and the foundation awaits the due carriage of justice so that all wrongdoing is brought to light.”
The foundation also said it was saddened by the fact that Hornyold Strickland “chose this sordid affair to try yet again to push his unjustified claims against the Foundation and Allied Group”. Those claims, it added, were turned down by the courts in 2018 and the case is under appeal.
Rather than reply publicly to the baseless accusations made by Hornyold Strickland, the foundation said it would continue to pursue its case in court.
“On the other hand, the present circumstances have revealed the foundation and other shareholders, including Mr Hornyold Strickland, to be victims of this criminal fraud and the call cannot be greater for all efforts to be made to expose whatever criminal and other misconduct has taken place.”
The foundation acknowledged the hard work of the present Allied boards and employees, especially the editorial team, journalists and staff, for their unstinting work in these difficult and trying times.
“The foundation pledges its support for the reforms in governance that have taken place in recent years to continue and be stepped up as a matter of priority, not just for the group but particularly for the preservation and strengthening of the free press.”