A woman accused of helping her boss launder money and defraud taxpayers of millions of euros has been granted bail.
Henrietta Cassar, a clerk who worked for contractor Martin Farrugia, was allowed out of preventative custody on Tuesday following a decree by Magistrate Leonard Caruana.
Prosecutors allege that Cassar issued fraudulent invoices, cashed cheques at Farrugia’s behest, and failed to declare income to tax authorities.
During her arraignment last month, prosecutors told the court she had deposited some €960,000 in cheques linked to Farrugia's business activities but had not declared any income with the Commissioner for Inland Revenue.
She also made some €150,000 in profits from her separate business related to memorabilia.
Cassar was initially denied bail following objections by the prosecution.
But during a hearing on Monday, prosecutors dropped those objections, saying the accused had communicated with the inspector in charge of the case.
The magistrate chose to deliberate on the bail request, and on Tuesday ruled in favour of granting it.
Cassar must post a €10,000 deposit and €50,000 personal guarantee, sign a bail book three times a week and remain at home between 9pm and 6.30am every day.
Cassar is being represented by lawyers Franco Debono and Francesca Zarb.
The court rejected a bail request filed by Farrugia.
Investigators homed in on Farrugia after the VAT department flagged suspicions about his filings.
Prosecutors believe Farrugia is behind a €4.2 million fraud, with the construction contractor first being targeted for investigation after the VAT Department flagged incongruities concerning his filings and those of some of his clients.
Clients of Farrugia’s had filed applications for refunds on capital investments, but receipts they submitted did not tally.
For example, a receipt Farrugia issued to a client showed an amount of €70, 210 (grey receipt) whereas the book copy (yellow receipt) showed the amount as €702.10.
As investigators probed further, further details of Farrugia’s lifestyle came to light. The Rabat-based contractor owned various exotic animals, including lions and tigers, and a fleet of cars including two Lamborghinis, Porsches and a Maserati.
The address listed on his ID card, however, was an uninhabitable field which he rented from somebody else.
The case continues.