A magisterial inquiry into chats between former tax chief Marvin Gaerty and businessman Yorgen Fenech has concluded there is no case to answer for.
The investigation was probing potential trading in influence involving Gaerty and the businessman who stands accused of conspiring to murder journalist Daphne Caruana Galizia.
Gaerty’s lawyers, Franco Debono and Francesca Zarb, confirmed when contacted yesterday that the magisterial inquiry had absolved their client.
Gaerty said he was pleased the case was over.
“The conclusion of the inquiry confirmed what I had been saying from the outset and I’m glad that this is now a closed chapter,” he said.
The inquiry began in December 2020 when he was questioned by the police’s Financial Crimes Investigations Department.
The former Inland Revenue boss had been placed under police bail while investigations continued but it was then revoked once the matter was taken over by Magistrate Claire Stafrace Zammit who launched an inquiry into the case.
The inquiry revolved around a 2019 exchange of messages between Gaerty and Fenech over an outstanding VAT issue.
VAT inspectors had found irregularities following an inspection at the Portomaso tower in St Julian’s, where the Tumas business empire is based.
Despite the irregularities, tax authorities had opted against taking the case to court, with the dispute instead being settled through an administrative fine as allowed by law. According to the sources, Fenech did not want his father, who was ill at the time, to have to go through court proceedings.
The conclusion of the inquiry confirmed what I had been saying from the outset and I’m glad that this is now a closed chapter
The sources said Gaerty had told Fenech in the message that no court proceedings would be brought against him. Back then, Gaerty had said: “I gave a full explanation and provided them with full correspondence on the matter.”
Gaerty had said he had no relationship at all with Fenech and was never offered any gifts by the business magnate. Asked whether tax authorities had ever investigated Fenech’s secret company 17 Black, Gaerty said all cases cited in the media have been subject to an audit.
Gaerty continued to perform his role of tax chief until January last year when he had asked to move to a different role after nearly 10 years in office. He took up a public post tasked with advising on fiscal policy matters within the finance ministry.
He was replaced by Joseph Caruana, the former permanent secretary at the transport ministry.
After his police interrogation, Gaerty had told Times of Malta it was “normal” for the Commissioner for Inland Revenue to get involved in administrative tax matters with Fenech.
“All my life at the Inland Revenue Department I’ve been assisting taxpayers with problems,” he had said.
Gaerty had appeared before the public inquiry into Caruana Galizia’s assassination, insisting he always acted within the parameters of the law.
“I never accepted any gifts from Yorgen Fenech. I never went to eat with Yorgen Fenech. I am a friendly person,” Gaerty had told the public inquiry by way of explanation about the familiarity in the messages.