Documents altered on Magro's orders for fraudulent refunds, court hears

Documents presented in connection with EU-funded projects were allegedly altered by a third party on Jimmy Magro’s instructions to fraudulently claim refunds, a court heard on Monday morning.

During the same sitting it also emerged the refunds had been deposited into the Local Councils’ Association’s (LCA) bank account.

Investigators allege that Magro and LCA accomplice Maureen Azzopardi altered mayoral attendance sheets to make them appear as if they were attendance sheets for EU-funded projects, to support fraudulent invoices.

Superintendent Rennie Stivala detailed the police investigation into the latest fraud charges against former Labour Party secretary general Jimmy Magro.

He is pleading not guilty to being an accomplice in fraud, fraudulent gain, being an accomplice in forgery and being an accomplice in making a false declaration to a public authority, aggravated as he was a public official. 

In September 2016, then Attorney General Peter Grech sent a report prepared by the Internal Audit and Investigations Department (IAID) to the police commissioner.

The report alleged abuse of funds linked to projects being carried out by the Local Councils’ Association (LCA).

The superintendent said two projects were of particular interest to investigators: 'Working Together for Development' and 'Suneagle Life Plus'.

The two EU-funded projects were carried out by the LCA in collaboration with two Italian partners. The association benefitted from funds on the agreement they would carry out events under the said projects.

An investigation into the councils’ association by the IAID found suspected abuse – some of which was criminal in nature and the other administrative. 

Stivala was tasked to investigate the report in January 2017, wherein he asked for IAID’s assistance due to the department having carried out the initial investigation.

The court heard Monday how Magro was initially an executive secretary for the LCA but was kept on as a special advisor. Maureen Azzopardi, who was separately charged, was the coordinator of the projects.

During the investigation, Stivala also questioned two foreign nationals, and it eventually transpired that they had no role in the administration of the projects nor in claiming refunds or payment.

'I had seen some things’

Joan Mangion, a former LCA executive secretary questioned in October 2017, told police she had worked at the association for a couple of months between February and October 2014.

She told police that she could “no longer work there as I had seen some things” in connection with the two projects highlighted by investigators. She said she had reported her observations to her superiors.

Mangion explained that attendance sheets from LCA and local council meetings had allegedly been altered and presented to the Italian partners as proof of events being held as part of the two projects.

She told police that Azzopardi had asked her for invoices to claim refunds, and that she had told him that she hoped they were not requesting double funding for events. This led to Mangion’s resignation.

The former executive secretary also told police that an unnamed mayor had refused to sign the attendance sheet because mayors had paid to attend the event.

Stivala clarified that attendees would pay and the LCA would ask for refunds from their Italian partners in connection with the projects.

Azzopardi claims Magro instructed her

When questioned by police, Azzopardi confessed to having altered the documents presented to the Italian partner. In her role, she would communicate with the lead partner and request refunds.

Azzopardi had joined the LCA following a public call and said Magro directed her.

When asked about incorrect information and misrepresentation on the documents, she confessed and explained that she would remove the LCA header from the attendance sheet, change it to the project’s header and send copies to their Italian partners to claim refunds.

The refunds would then be deposited into the LCA account.

When asked why she would do so, Azzopardi said Magro had instructed her to do so. She also told police that Magro “was not an easy person to work with”, but denied she was pressured or threatened to alter the documents.

The claim was denied by Magro when he was later interrogated by the police.

'Manipulated' attendance sheets

Stivala also explained how attendance sheets of statutory meetings were manipulated in a way to show the event held was in connection with one of the projects.

In one instance in August 2011, a statutory meeting for mayors was held at the Dolmen Hotel, but the attendance sheet was manipulated and used to request a refund, according to the IAID report.

Stivala explained that on another occasion, the IAID found that a €3,800 invoice had been issued in respect to a councillors’ plenary. The event was listed in the LCA ledger as a statutory meeting, not as an event included in the project. He added that the accused justified the invoice by saying the projects were advertised during lunch breaks and coffee breaks.

In court, Stivala presented the original documents with the correct letterhead and the altered documents. He also presented emails exchanged between Azzopardi and Mangion, wherein Azzopardi asked for two invoices from 2012, two years later.

Refunds

Defence lawyer Michael Sciriha asked the prosecuting officer whether Magro kept any money from the refunds.

Stivala said that the refunds were deposited into LCA accounts, and not into Magro’s accounts.

The present LCA executive secretary, Lianne Cassar, took the witness stand on Monday. She presented contracts by which Magro and Azzopardi had been engaged by the association.

The defence requested that the LCA accountant be brought to testify in the following sitting to determine when the alleged fraud took place. Prosecuting inspector Rennie Stivala explained that the accountant was away and would return at the end of the month.

Debono also asked why the offences allegedly took place between January 2010 and December 2015, and how was the latter date chosen.

Stivala replied that it was based on information he obtained during the investigation. While the date on which the documents had been altered was not known, the LCA received payments from its partners on different dates.

The case continues later this month.

Police superintendent Rennie Stivala prosecuted.

Lawyers Michael Sciriha, Franco Debono and Roberto Spiteri appeared for Magro.