Times of Malta hit by court ‘gagging order’ from e-money firm

Updated 2.40pm with David Casa statement

Times of Malta has been hit by an urgent court injunction preventing it from publishing an article about e-money firm Papaya. 

Papaya, via FFF legal, claimed the article would breach anti-money laundering secrecy laws. 

Times of Malta was hit with the temporary and unprecedented injunction on July 25, just one day after sending questions to Papaya ahead of the article. 

A hearing regarding the injunction was scheduled for Monday but the sitting was postponed. 

Papaya's representatives asked for the case to be deferred because Damien Degiorgio, the lawyer who filed the urgent injunction, was “abroad”, sparking objections from Judge Lawrence Mintoff. 

The case was nonetheless postponed to August 13 after it transpired that Papaya had not been notified of Times of Malta’s objections to the injunction. 

In its legal submissions, Times of Malta said the injunction was tantamount to a gagging order preventing journalists from publishing an article in the public interest.

"Preventing a journalist from publishing a story is recognised in all democratic countries as illegal and a violation of the journalist’s fundamental right to freedom of expression – a main pillar of democracy," said the reply from Times of Malta's legal representative Paul Micallef Grimaud.

Should such injunctions become the norm, it would harm journalism in Malta and impact freedom of expression, Times of Malta argued. 

Quoting established European Court of Human Rights case law, Times of Malta said not only does the media have the role of imparting information and ideas, but the public has a right to receive them. 

In its legal submissions, Times of Malta said it had been hit by the gagging order before a draft of the article had even been written. 

Furthermore, the questions sent to Papaya were all in the public interest. 

In response to the questions, Papaya went into a "panic" to file an injunction to prevent publication without having any legal basis for doing so, Times of Malta argued. 

Papaya was simply “abusing” the legal system to stifle journalism and prevent its name from appearing in the media.

Times of Malta also pointed out to the court that alleged anti-money laundering law breaches by Papaya had already been reported on in the past.

 The injunction was filed against journalist Jacob Borg, Allied Newspapers Ltd (represented by executive director Alex Galea) and Times of Malta (represented by editor-in-chief Herman Grech).

Papaya is currently appealing a €279,000 fine from the Financial Intelligence and Analysis unit for such breaches.

Times of Malta reported in 2023 how the fine came after one of Papaya’s directors was sanctioned by the United States over his links with Russia.

In a statement, MEP David Casa described the injunction as "an unprecedented and chilling attack on press freedom." 

"Such censorship undermines democracy, the public’s right to know, and journalism in the public interest," Casa said.