EU Commissioner John Dalli’s head of cabinet on Wednesday recalled “a heated discussion” during which Dalli had challenged a “no change” position on the ban on snus (smokeless tobacco), later granting his go-ahead for that ban to remain.

Joanna Darmanin was testifying in proceedings where the former EU Commissioner is pleading not guilty to trading in influence and attempted bribery concerning a €60 million bribe his former aide, Silvio Zammit, had allegedly solicited to help lift the ban on snus.

Darmanin recalled that rather “argumentative” meeting held in preparation for another meeting with Paola Testori, who was Director General for Health and Consumers at the European Commission in 2012. 

She explained that more than 10 years had passed since the entry into force of the Tobacco Directive in 1992 and therefore, the need was felt to revise that directive so as to update it in light of developments in the tobacco market.

New products were not regulated and there were also issues regarding labelling, packaging, flavouring and health warnings, possibly calling for more stringent measures.

The first steps were taken in 2012 by way of an impact assessment drawn up by technical persons who focused on the economic, social and environmental issues at play.

One of those issues was the ban on smokeless tobacco, known as snus.

The director-general then sent an official note to Commissioner Dalli, attaching a copy of that impact assessment and seeking his go-ahead to proceed with further consultations.

The director-general’s position was that there should be “no change” and that the ban on snus was to remain.

As was the norm, a preparatory meeting was set up in February 2012 with Dalli to check whether he had any questions to raise during the scheduled meeting with Testori.

Darmanin said that after explaining the DG’s position with regard to the continued ban on snus, Dalli appeared rather “uncomfortable,” and raised various questions.

Dalli’s arguments were twofold.

He argued that scientific studies showed that the impact on public health was less in the case of snus than tobacco products.

Secondly, there was no level playing field since cigarettes could be sold on the markets where snus was prohibited.

Darmanin said she strongly rebutted those arguments, pointing out studies showing the health impact of snus, including the risk of mouth cancer.

Moreover, the prohibition on the marketing of snus had already been tested before the European Court.

Besides, as Commissioner for Public Health, reversing the ban would be “of great reputational risk,” Darmanin had warned Dalli.

Asked to describe that meeting, the witness said it was “somewhat eventful, argumentative…a heated discussion.”

That meeting was followed by another meeting with the director-general where Commissioner Dalli granted his go-ahead. That meant that Dalli’s final position was in line with the way forward proposed by the DG whereby the ban on snus was to remain.

That position was adopted by the College [of European Commissioners] on December 19, 2012 and subsequently by the European Parliament in March 2013.

“So after that meeting the ban remained?” asked defence lawyer Stephen Tonna Lowell.

“Yes,” confirmed the witness.

However, a report subsequently drawn up by the EU anti-fraud agency, OLAF, had concluded that there was a case of trading in influence in respect of Dalli’s former-aide, Silvio Zammit.

The report also called for further investigations in respect of Dalli and lawyer Gayle Kimberley, who was the representative for tobacco company Swedish Match.

Zammit was summoned for questioning by OLAF officials who travelled to Malta in 2012.

OLAF committee member testifies

The Maltese member on OLAF’s supervisory committee at the time, Rita Schembri, also testified in Dalli’s case in court on Wednesday.

She said that during a meeting in Brussels, Giovanni Kessler, director-general at OLAF, told her about an investigation that was to start in respect of Maltese Commissioner Dalli 

“It was difficult. As a civil servant I had to do my job or else resign.”

She returned to Malta, checked Malta's agreement with OLAF and sought advice from then Attorney General Peter Grech whose reply was, “let us proceed and help as they request us to.”

Schembri’s duties were twofold.

She was to attend Zammit’s interrogation and to provide Dalli’s call logs.

Zammit was questioned in Malta on three occasions, during one of which he walked out and returned the next day.

He refused legal assistance.

“We realized where it was heading, namely that they [OLAF] were pointing in the direction of trading in influence and corruption by Zammit.”

So Schembri said she had asked him whether he understood where the investigation was heading.

“Wouldn’t it be better to have a lawyer present?” she had suggested.

But Zammit shrugged off the suggestion and proceeded, “smiling most of the time,” and referring to “my [Zammit’s] boss meeting your boss.”

Asked who was his boss, Zammit replied, “God is my boss.”

“What I regret is that he didn’t realize how serious the situation was,” said Schembri.

Zammit had told the “whole story” about his meetings with snus lobbyist Kimberley and the notes they exchanged.

His account was recorded in OLAF’s report.

Asked by AG lawyer Antoine Agius Bonnici whether Zammit had named “his boss,” Schembri replied, “in the interrogation, no, I don’t recall he did.”

He was interrogated because OLAF suspected Zammit of being the go between the European Smokeless Tobacco lobby (ESTOC) and the Commissioner.

Dalli’s lawyer pointed out that Zammit had told police that the Commissioner had nothing to do with it.

But Schembri said, “No, he never said that to OLAF in my presence.”

Wednesday’s sitting was wound up by testimony by Mario Mercieca, a friend of Zammit.

He said that while the two were on holiday abroad some eleven years ago, Zammit received an invitation for a meal at a restaurant in Stockholm.

Mercieca went along with him.

Their table companions were [ESTOC secretary general] Inge Delfosse and another woman, both identified in a snapshot taken by Mercieca himself that time at the restaurant.

Throughout the meal, conversation was “normal.”

Asked to supply more details, Mercieca recalled that the women had spoken to Zammit about snus.

But at the time, he had no idea who those women were nor what their work consisted of, said the witness.

The meal had lasted under two hours which was less than the time that he and Zammit had spent touring the city that day.

The case, presided over by Magistrate Caroline Farrugia Frendo, continues.

AG lawyers Antoine Agius Bonnici and Anthony Vella prosecuted together with Superintendent James Grech.

Lawyers Stefano Filletti and Stephen Tonna Lowell were counsel to Dalli.