Michael Stivala has stuck by Joseph Muscat after details emerged in court about how the former prime minister is suspected of corruption and money-laundering.
Stivala, a major developer who put Muscat on a consultancy contract soon after his resignation as prime minister in January 2020, argued that everyone is presumed innocent until proven otherwise.
Muscat is considered a suspect in a money-laundering and corruption probe into the government’s Vitals/Steward Health Care hospitals contract.
Replying to questions by Times of Malta about his consultant, Stivala distanced himself from the court testimony given by one of the investigators on the case, detailing why Muscat’s home was searched in January 2022.
Dr Muscat has neither been indicted, let alone found guilty- Michael Stivala
“I was not present in court when the testimony mentioned by you was given. I would obviously need to see an official transcript of that testimony. Times of Malta’s report uses the words “could be involved” and not “suspect” as used by you.
“Dr Muscat has neither been indicted, let alone found guilty. Everyone is presumed innocent unless otherwise proven,” Stivala said.
Stivala, who also heads the all-powerful developers’ association, sued activist Arnold Cassola last year over suggestions that the consultancy contract was payback for preferential treatment received by Muscat when he was still prime minister.
Johann Schembri, who also put Muscat on a consultancy contract with his bird-breeding company Organicum, declined to comment on the court testimony.
“Information on consultants engaged, retained or otherwise by me or my companies is not something that I am required to share publicly, nor do I feel the need to do so, particularly considering that, earlier this year, I provided details in relation to this particular consultancy to you.
“This was done to show and record that the engagement is on an arm’s length basis, like any other consultant I engage, and to correct a number of incorrect statements and inferences that were being made,” he said.
Muscat was put on Organicum’s payroll on a €11,800-per-month contract less than a year after he oversaw a “disgraceful” government deal involving the Dragonara Casino run by Schembri. The casino was saved “millions” after Muscat’s government slashed the annual ground rent payments and extended the property lease for the prime St Julian’s site by 64 years, without a public tender.
Fortina Investments, another business group that has engaged Muscat as a consultant, said it would be “imprudent” to comment on remarks made during court proceedings not related to the company. The group was recently in the news after illegally reclaiming land from the sea prior to a parliamentary resolution approving the expansion of its Sliema lido.
While the company had obtained a planning permit to carry out the works, Lands Department CEO Robert Vella told parliament that the company had no valid legal title over the site.