Mr Justice Aaron Bugeja on Monday began hearing legal submissions to back a claim by 78 employees in companies in which former chief of staff Keith Schembri has a business interest, who want the court to unfreeze their wages. 

The two-hour sitting was attended by a good number of the employees, who could not fit into the courtroom due to COVID-19 restrictions. 

The proceedings were held behind closed doors because the application was filed in the context of an attachment order which is protected at law.     

In an urgent application filed on Sunday, the employees asked for their wages to be exempted from the freezing order issued by a judge last week.

The request came after a similar application by six companies owned by Schembri, asking for permission to temporarily have access to their assets to pay the salaries to their employees.

Firms belonging to Schembri had their assets frozen last Monday after a court issued an attachment order to that effect. The order listed 91 people and companies, including Schembri and his accountants at Nexia BT, Brian Tonna, Karl Cini and Manuel Castagna. It ordered the freeze on suspicion of money-laundering offences.

Police Commissioner Angelo Gafà on Friday confirmed that all four men arrested last week had all been granted police bail as investigations continue. 

Schembri, Tonna, Cini and Castagna were arrested following the conclusion of an inquiry into financial crimes. 

In their application, the employees asked the court to consider the request as urgent given that Wednesday is the end of the month and they are due to be paid their wages that day. They said their wage is their only livelihood and they need the money to feed their families and pay their bank loans. 

Lawyers Edward Gatt and Mark Vassallo argued in court on Monday that none of the 78 people feature on the investigation order and the freezing of their salary was disproportionate. The lawyers said their clients' right were being breached as they were simply employees and had nothing to do with the case at hand. 

They want the court to authorise the release of a set amount for the companies to be able to issue salary payments under the watchful eye of a court-appointed administrator. Another sitting is expected on Thursday. 

In the application filed by the companies on Saturday, the lawyers, who also represent Schembri personally, argued that it was yet to be determined whether the freezing order was in line with the conclusions of the magisterial inquiry into the claims of corruption, kickbacks and money laundering, concluded by Magistrate Natasha Galea Sciberras.

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