Criminal report filed against ex-OPM, Lands chiefs on €13m Fortina case 'fraud'
Keith Schembri, Carlo Mifsud named in criminal complaint
A criminal complaint has been filed against ex-OPM chief of staff Keith Schembri and ex-Lands Authority CEO Carlo Mifsud over their alleged role in Fortina land valuation "fraud".
In the complaint, Fondazione Falcone representative Robert Aquilina, together with lawyer Jason Azzopardi say the €13 million “fraud” was confirmed on Monday in a report by the National Audit Office.
The NAO report found that land that should have been valued at €21 million was conceded to Fortina for €8.1 million.
This €8.1 million valuation obtained by the Lands Authority was contradicted by another independent valuation, which placed a minimum price tag of €18 million on the land.
The NAO found the latter valuation was “suppressed” by Lino Farrugia Sacco, who at the time headed the Lands Authority’s board of governors. The former judge has since died.
Schembri is alleged to have played a role in the “wider effort” to keep the second valuation quiet. He denies wrongdoing.
Aquilina alleges in the criminal complaint that Schembri and Mifsud were involved in fraud, trading in influence and money laundering, among other crimes.
The complaint demands an investigation into the alleged crimes by the police, together with the opening of a magisterial inquiry.
Under new laws pushed through by the government in April, people can no longer directly ask for the opening of a magisterial inquiry.
Instead, a police report must first be filed, and judicial review of the police's actions can only be triggered after six months.
On Monday, PN leader Alex Borg demanded a public inquiry and a police investigation into shortcomings found by the Auditor General.
Culture Minister Owen Bonnici, who is now responsible for the Lands Authority, said major reforms had been made since the Fortina case took place.
Among them, a new chairperson and a new CEO had been appointed at the Lands Authority, Bonnici said.