Last updated at 7.40pm with FIAU statement
A source at the Financial Intelligence Advisory Unit had told slain journalist Daphne Caruana Galizia that Keith Schembri, the Prime Minister's chief of staff, was calling the unit repeatedly asking them not to investigate private banks, particularly Pilatus, a court heard on Wednesday.
Ms Caruana Galizia's husband Peter said this when testifying in the case instituted by Ms Caruana Galizia's family to have Deputy Police Commissioner Silvio Valletta removed from the investigation into the murder, which took place on October 16. He said he did not know who the source was.
Later this morning, Mr Schembri issued a statement to deny any contact of any sort, let alone interference in the work of the FIAU.
"It is shameful that such unsubstantiated and untrue allegations, presumably based on hearsay, are made in such a forum," he said.
When the case started being heard last week, Mr Justice Silvio Meli advised the parties to discuss a possible amicable solution before proceedings reached the evidence stage.
The proceedings were to be conducted in public ... [to] safeguard the principle of rectitude, and ensure that the proceedings could stand up to the scrutiny of objective analysis
"Reaching an agreement would send out a strong message to the nation-at-large that the country's institutions applied the rule of law," he said, adding that the most vital issue underlying the case was that of "peace of mind".
However, an e-mail sent by lawyers representing the Caruana Galizia family to the Attorney General’s Office had received a curt reply that the respondents would be in court for the hearing.
During today's sitting, lawyer Victoria Buttigieg, from the AG’s office asked for proceedings to be heard behind closed doors, since confidential information might jeopardise the investigations.
“I believe in transparency. That is the only thing which will protect me too. Should there be any information which requires secrecy, I will oblige. You had the chance to end the case before it even started, but you did not. Now do not come here requesting proceedings to be heard behind closed doors,” Mr Justice Silvio Meli said.
Lawyer Jason Azzopardi said that in a matter of such gravity on a national scale, the ruling that the hearing was to be held in public should hold except for evidence which could directly impinge upon other investigations.
Mr Justice Meli declared that the proceedings were to be conducted in public, in a transparent manner.
It was only in this way that the court could safeguard the principle of rectitude, and ensure that the proceedings could stand up to the scrutiny of objective analysis, he said.
Taking the witness stand, Dr Caruana Galizia said that although his original intention was to testify viva voce, he had decided instead to prepare a seven-page declaration.
“After printing the declaration I recalled something my wife had told me... My wife had told me she had a source at the Financial Intelligence Advisory Unit who told her that Keith Schembri was calling repeatedly - asking them not to investigate private banks, particularly Pilatus. I do not know who that source was,” Dr Caruana Galizia said.
He said that the family’s application was not against Mr Valletta personally but against his position and role.
“We believe the murder was a political one,” he said.
Asked by lawyer Therese Comodini Cachia why the family had felt the need to institute the case, Dr Caruana Galizia said the family had tried to avoid it and sent a letter to the Police Commissioner.
“We did not get a reply. As the journalist’s next of kin, we had never gone through such an experience. I have personally never practised in this field. However, we are entitled to an independent investigation and we even sought legal advice from British lawyers,” he said.
I was and still am very angry. I cannot find peace.
British law firm Doughty Street Chambers, in advice solicited by the family wrote that the deputy commissioner should be removed from the case and that "external, impartial" investigators should be brought in.
Dr Caruana Galizia continued: “I was and still am very angry. I cannot find peace. This was a personal tragedy for me and my sons. I felt I owed this to my wife out of respect,” he said before his voice broke down and he had to pause to regain composure.
Mr Justice Meli told Dr Caruana Galizia that his statement that the murder was a political one was very strong.
“That is so far a baseless statement, a supposition which has not been proven. Let us not reduce these proceedings to a mockery,” he said.
Dr Caruana Galizia replied that for once he agreed with what the Prime Minister said.
“Yes, so far there is no proof, but everyone knows that she was killed because of what she wrote or was about to write,” he stressed.
Mr Valletta then took the witness stand.
He said it was his responsibility to supervise and oversee all the investigations under his department. This, he said, was an investigation conducted by the national police assisted by foreign forces.
Asked whether the investigation was over, Mr Valletta replied: “Definitely not. It is the intention of the police to ensure that investigations are brought to their full end.”
He said there were still seven people under police bail.
Before putting off the case to January 11, Mr Justice Meli declared: “We are all victims in this case. It’s not just you.”
FIAU REACTION
In a reaction and without mentioning Keith Schembri, the Board of Governors of the FIAU said that the unit had always performed its duties and functions in terms of law free from undue influence or pressure and it never refrained from carrying out any investigation or analysis when it felt that this was called for." This irrespective of who the subject persons to be investigated were or whether they were private banks or others."
It said the FIAU internal structures, policies and procedures were such that decisions regarding the analytical work and the supervisory work were taken collectively by internal committees and sub-committees and in a transparent and auditable manner.