A company erroneously charged with money-laundering has demanded financial compensation from the state over the blunder.

In a legal letter, DF Corporate Advisory accused the Attorney General and police of rushing to file charges in the Vitals hospitals scandal.

This blunder had led the company to suffer reputational, moral and financial damages, the company’s lawyer said.

Prosecutors withdrew the charges during a marathon court sitting last week, however the company argued that by then, the damage had already been done as a result of the “illegal”, “abusive” and “negligent” actions.

The legal letter says DF Corporate Advisory was hit with a €20 million freezing order and was subject to negative media coverage because of the prosecution’s blunder.

The company’s directors Jean Carl Farrugia, Kevin Deguara and Kenneth Deguara are separately charged in their individual capacity with money-laundering in connection with the scandal. Those charges still stand, however all three deny wrongdoing.

Several senior officials and companies, including former prime minister Joseph Muscat, are also facing charges in connection with the hospitals’ debacle.

DF Corporate Advisory’s lawyers noted how the company was not even on the list of companies that the inquiring magistrate had recommended charges against.

This shows the decision to charge the company was taken solely by the Attorney General and police, the lawyers said.

Instead of immediately withdrawing the charges once the blunder was acknowledged by the authorities on May 13, prosecutors instead waited until the first hearing in May 29 to do so.

This meant DF Corporate Advisory continued to suffer damages even after the prosecution had realised its mistake, the lawyers argued.

It argued that the state should immediately pay for the damages caused, otherwise further legal action would be taken. The amount of the claimed damages was not specified in the legal letter.

Lawyers Franco Debono, Marion Camilleri, Ezekiel Psaila and Jonathan Thompson are representing DF Corporate Advisory.

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