Updated 2.40pm with OPM statement
Activists have filed a police report denouncing Prime Minister Joseph Muscat for alleged bribery, corruption, and having a conflict of interest after he had received expensive watches as gifts from Daphne Caruana Galizia murder suspect Yorgen Fenech.
Dr Muscat is alleged to have received a limited edition white gold Bvlgari watch valued in the tens of thousands of euros from the business tycoon as a Christmas present in 2014. He also received another watch, valued at around €2,000, from Mr Fenech at a separate date. Mr Fenech was a director of Electrogas, before he was linked with the journalist's murder.
The activists' statement sparked a reaction from the Office of the Prime Minister which denounced the "smear" campaign but made no specific reference to the Bvlgari watch he was gifted by the 17 Black owner.
The report, which was filed by Nationalist MP and lawyer Jason Azzopardi on behalf of activist group Repubblika, comes after LovinMalta reported the gift of a Bvlgari watch present, which is part of a limited edition set of watches manufactured by the luxury Italian brand to mark Malta's accession to the EU.
In a statement, Repubblika said that following an investigation by the National Audit Office, it transpired that Electrogas should have been disqualified from the bidding process of the €450 million power station project on the grounds of various shortcomings.
The NGO added that in 2014 the government had taken the “unprecedented” decision to take out a €110 million guarantee on a loan taken by Electrogas Limited. This move had been harshly criticised by the NAO on two counts.
While it meant that the tender parameters had been shifted to accommodate Electrogas, it also exposed public finances to certain risks, Repubblika said.
Dr Azzopardi pointed out that the limited edition Bvlgari watch donated to the Prime Minister was numbered 17 – which was very similar to the name of secret Dubai-Base company 17 Black owned by Mr Fenech.
This company was meant to deposit €5,000 daily to former Energy Minister Konrad Mizzi and former OPM Chief of Staff Keith Schembri, in return for securing the lucrative €450 million power station contract, Dr Azzopardi said.
Furthermore, it was pointed out that Dr Muscat had not declared this expensive gift in his annual declaration of assets.
When contacted, Standards Commissioner George Hyzler said he will look into the matter, noting however, that the exchange happened before he assumed the role in October 2018.
A personal vendetta - OPM
In a statement on Thursday afternoon, the Office of the Prime Minister said Dr Muscat will not engage in answering "partial, deeply manipulated information being selectively leaked" to parts of the media by someone who is directing the accused in a hideous assassination case to obviously try to build a narrative that is both misleading and self-serving.
"The Prime Minister did his duty in this case, despite the fact that he was threatened, as he himself reported, with a smear campaign."
No amount of personal vendetta timed with vehement spite by someone will deviate from these facts
The OPM said the Prime Minister holds the right to take appropriate action at the right time, as well as answer with facts that will show the manipulation and the "pure inventions being circulated right now and others being obviously concocted.
"No amount of personal vendetta timed with vehement spite by someone will deviate from these facts."
Meanwhile, it said the Prime Minister has always followed all the codes and rules related to gifts he received.
Yorgen Fenech's father, George, is understood to have bought a number of the set. George Fenech died in early December 2014, just weeks before his son Yorgen gifted the prime minister one of the set.
The ministerial code of ethics forbids all cabinet members from receiving gifts which "might be deemed to create an obligation, real or imaginary" and requires all ministers to report to the prime minister any perceived attempt to sway them when accompanied by a gift "whatever its value".
Mr Fenech's wristwatch largesse was not limited to Dr Muscat: according to sources, the businessman also gave his childhood friend Keith Schembri, who until last month served as Dr Muscat's chief of staff, a white gold IWC watch for his 40th birthday.
The watch is valued at €12,000, sources told Times of Malta.
Joseph Muscat and Yorgen Fenech.Fenech's clock
The gift raises memories the infamous handmade clock former Nationalist Tonio Fenech had been gifted by an oil trading family at the centre of an Enemalta corruption scandal.
It had later emerged in court evidence that the clock cost between Lm400 and Lm500 (€900 and €1,200) and was paid for by Power Plan Ltd, a company owned by the Farrugia brothers.
Labour exponents had claimed Mr Fenech was given a €5,000 gift during his time as minister by rogue oil trader George Farrugia and Dr Muscat, who at the time was leader of the Opposition, had said the gift was grounds for resignation.
Mr Fenech had stressed that he did not know that the clock was paid by Power Plan.