The first wife and a son of Shaukat Ali Chaudhry, the secret major shareholder of Vitals Global Healthcare, on Thursday pleaded not guilty to money laundering and a series of charges over their alleged involvement in the fraudulent hospitals deal. 

Pakistani-born Fakhra Shaukat Ali, 68, and her son Wajid Shaukat Ali, 38 were charged with money laundering, trading in influence, fraud, bribery and corruption. 

Prosecutors allege the family profited illegally from the hospitals deal, using Ali-controlled companies Mount Everest FZ LLC and Global Assets Holdings to do so.

Last month Magistrate Rachel Montebello ruled there was enough prima facie grounds to commit Shaukat Ali Chaudhry and his current wife Shaukat Aasia Parveen to trial on indictment on similar charges.  

During Thursday's arraignment, prosecuting Inspector Wayne Rodney Borg said that he was roped into the Vitals concession magisterial inquiry in 2022. He summoned witnesses indicated by inquiring magistrate Gabriella Vella. 

Fakhra Shaukat Ali walking out of the law courts on Thursday. Photo Chris Sant Fournier.

He was one of the team who signed and issued the charges based on the conclusions of the inquiry.

There was no parallel investigation by the police and both mother and son were not spoken to by the police. 

Arguments over freezing order

Questioned by defence lawyer Shazoo Ghaznavi, the inspector said that the magisterial inquiry indicated the amounts to be subject to a seize and freeze order in respect of each of the persons charged. 

Wajid Shaukat Ali.

The amounts requested by the Attorney General were slightly more.

After hearing submissions by the parties, Magistrate Rachel Montebello upheld a freezing order for €20 million each to ensure that the defendants' funds were not dissipated and any court order may be executed.

The court also observed that the prosecution’s request was based on the inquiry which contained voluminous evidence referring to millions of euros allegedly misappropriated from public funds for the accused's own personal gains. 

The details also allegedly pointed at the defendants’ involvement in these crimes and the amounts allegedly involved.

The prosecution informed the court that it had no further evidence for prima facie purposes, and the court declared that there was enough prima facie evidence for the defendants to stand trial on indictment.

The court also upheld a request by the prosecution, prohibiting the defendants from publishing declarations or comments about evidence or testimonies produced in the case, or sharing any material records in any manner. 

The defendants, who said they normally and habitually lived in Malta, were ordered to file a note in the court registry when they travel abroad. 

They were told to indicate the destination and length of stay whilst making sure that they do not go abroad when there were court sittings. 

And to make sure that they abided by these conditions, the court bound mother and son under a personal guarantee of €30,000 each. 

The case continues next month. 

Attorney General lawyers Francesco Refalo, Rebekah Spiteri and Shelby Aquilina prosecuted together with inspector Wayne R Borg.

Lawyer Shazoo Ghaznavi was defence counsel.