Melvin Theuma's phantom job case ends with acquittals for all five accused

Updated 7.20pm with court reasoning

Keith Schembri, Yorgen Fenech and three others have been acquitted in connection with a phantom government job given to state witness Melvin Theuma. 

The court decision was handed down by Magistrate Monica Vella at a sitting on Wednesday morning. Prosecutors intend to file an appeal.

Schembri, the former chief of staff in the Office of the Prime Minister (OPM), murder suspect Yorgen Fenech, former OPM customer care head Sandro Craus, former family ministry private secretary Anthony Mario Ellul and Anthony Muscat, the ex-CEO of a government company, were all charged with theft and misappropriation of public funds.

They denied the charges.

In a Facebook post, Schembri said the judgment was "the beginning of the closure of a very difficult chapter for me and for those around me".

He claimed the case was initiated by people "who swore to destroy me" because "I am a Labourite and because I have done a lot of good for the Labour Party, the government and the people". 

The former chief of staff is also facing a raft of other charges including money laundering, corruption and criminal association that have not yet been decided. 

Theuma, who acted as a middleman in Daphne Caruana Galizia’s murder, had testified that he was given a government job five months before that murder. He had then been invited to an audience with Schembri, the former OPM chief of staff, at Castille.

Theuma said he used to receive a monthly paycheque but never actually reported for work.

Based on those claims, police pressed charges against the five men.

The case faltered when Theuma refused to face cross-examination after being cautioned by the court. In October 2024, the court declared his testimony linked to the case inadmissible. 

Theuma had refused to testify due to concerns about self-incrimination, with questions arising as to whether he was covered by a presidential pardon he was granted in connection with the Caruana Galizia murder case.

The court said that by refusing to face cross-examination, Theuma was in violation of various legal principles and the defence's call for his testimony to be removed had to be upheld. 

At that point, Theuma submitted a note saying he was willing to be cross-examined in the case. But the magistrate refused that request as well as a similar one filed by the prosecution.

Court's reasoning

The court dismissed charges against Muscat on the grounds that the prosecution had failed to prove that he had a fraudulent intention in paying Theuma for the phantom job or had derived any personal benefit from that. 

Charges against Craus were dismissed because, as a person of trust, he did not qualify under the legal definition of "public official". Prosecutors had charged him with misappropriation by a public official. 

Fenech, who also stood accused of that crime, was also cleared of the charge because he was not a public official. 

Schembri and Ellul were charged as accomplices in the crime. The court ruled that given that no public official was proven to have misappropriated funds, they could not be found guilty as criminal complicity requires the underlying crime to be proven. 

After the court read out its judgement on Wednesday morning, the prosecution informed the court that it will be appealing the judgement.

In a statement, rule of law NGO Repubblika pointed out that the acquittal was "based on the inadmissibility of testimony and not on a finding that the behaviour in question was lawful or acceptable".

It said it was "deeply alarmed that those who were politically responsible for the abuse now present themselves as victims" and that the government and the Labour Party "refuse to distance themselves from them". 

Inspectors Nicholas Vella and Brian Paul Camilleri are prosecuting. Lawyers Edward Gatt and Mark Vassallo assisted Schembri. Lawyers Charles Mercieca and Gianluca Caruana Curran assisted Fenech. 

Lawyers Vince Micallef, Jacob Portelli and Ryan Ellul assisted Ellul. Lawyer Stefano Filletti assisted Muscat. Lawyers Michael Sciriha, Lucio Sciriha and Roberto Spiteri assisted Craus.

Theuma was represented by lawyers Matthew Brincat and Kathleen Calleja Grima.