Nexia BT partner Brian Tonna had asked for his money back after investing in a property venture telling his partner on that deal that “he had no mind for business” because of family problems.
This episode, dating back some 11 years, was recounted by property contractor and petrol station owner John Micallef on Monday when testifying in money laundering proceedings against former OPM chief of staff Keith Schembri, his father Alfio, business partner Malcolm Scerri and accountant Robert Zammit.
The same testimony was repeated on Tuesday in the presence of Tonna himself in parallel proceedings against Nexia BT partners Tonna, Karl Cini and Manuel Castagna together with office manager Katrin Bondin Carter.
They face charges of money laundering, forgery and other crimes stemming from magisterial inquiries surrounding Schembri.
The business deal
Some 11 years ago, Tonna had agreed to join Micallef on a “50/50” business venture concerning a site in Birkirkara.
Tonna handed over money for the deal, testified Micallef, explaining that there had been no private writing since the law at the time did not require promises of sale to be registered.
Tonna handed over a figure “in liri,” said Micallef when shown a copy of the €80,000 cheque which he claimed to have issued in favour of Tonna when the latter approached him saying that he did not wish to proceed with the investment. Micallef was at the Rabat petrol station when Tonna had requested his money back.
He was not expecting to see Tonna whom he believed to be abroad in the USA at the time and had in fact voiced his surprise.
“You know what I want John, just give me back what I gave you,” Tonna had replied, adding that he had “no mind” for business because of family problems.
And that is what Micallef did.
He had written a cheque for €80,000 offsetting the value of work the two had done for each other and handed over that payment to Tonna.
Asked by prosecuting AG lawyer Antoine Agius Bonnici, Micallef said that that cheque dated 2011 was sent to Tonna and was cashed at a bank.
Auditor testifies
Auditor and accountant Steven Galea, who claimed to have had a long working relationship with Nexia BT, also testified in both hearings explaining the auditing tasks he carried out for Nexia.
In 2010 and 2011 there was an increase in the workload because Galea was assigned some audits of Nexia’s companies and audits of liquidations of some of their clients.
Galea also exhibited a list of invoices covering payments from Nexia.
Cheque payments amounted to €57,660 for the period covered by the invoices, while on a couple of occasions some €5,000 was paid in cash.
A particular document shown to Galea in court was described as some remittance advice by Nexia to Lombard Bank concerning the deposit of some six cheques.
Asked by defence lawyer Stephen Tonna Lowell if those payments concerned professional services against a tax invoice, Galea confirmed that that was so.
Court order Nexia BT administrator to present detailed report
As Tuesday’s hearing neared an end, the court, presided over by magistrate Donatella Frendo Dimech observed that the administrator appointed in the Nexia BT case was the only one lacking in feedback to the court.
“This is not on,” remarked the magistrate, ordering Paul Darmanin, the administrator in question, to present a detailed account of his work so far and a written report updating the court.
Meanwhile, Tonna Lowell informed the court that the defence was filing an application to request the varying of certain bail conditions.
Another application concerned the payment of two life policies due to be paid to Karl Cini.
Both applications are scheduled for discussion at the next sitting in December.
Meanwhile, at Monday’s hearing in the Keith Schembri money laundering case, Tonna’s wife was summoned to testify but her testimony was heard behind closed doors.
She was not, however, a compellable witness in today’s proceedings against her husband, the prosecution said, making reference to article 635 of the Criminal Code as pointed out by lawyer Giannella de Marco.
AG lawyers Antoine Agius Bonnici, Sean Xerri de Caro and Andrea Zammit handled the prosecution. Lawyers Tonna Lowell, Giannella de Marco, Franco Debono, Michael Sciriha and Matthew Xuereb were defence counsel at the Nexia case. Lawyers Edward Gatt and Mark Vassallo were defence counsel at the Schembri case.