Former Planning Authority chief executive Johann Buttigieg dined with alleged murder mastermind Yorgen Fenech on three occasions, where he discussed projects the businessman had in mind. 

Buttigieg told the Daphne Caruana Galizia murder inquiry that the lunch meetings, at a restaurant and a party at Fenech’s ranch in Żebbuġ, were always work-related. He said he first met the businessman in 2013 but could not recall the precise date. 

Buttigieg, who is today the chief executive officer of the Malta Tourism Authority, explained that he met Fenech who wanted to develop a hotel on reclaimed land close to Filfla.

He even wanted to develop a hotel on Manoel Island and had once expressed his interest to purchase the entire island. 

Asked about his relationship with Fenech, the witness said that he got to know him when he had first floated these project ideas. He insisted that he always distinguished between work and private life and that his meetings with Fenech were strictly about work. He asserted that in his role of CEO of the Planning Authority, he used to meet anyone who wanted to meet him to discuss ideas. 

Asked who was at the party he had attended and whether Keith Schembri was present, Buttigieg said there was “no one of interest” at the party. 

In reply to a question about the “kitchen cabinet” mentioned in the last inquiry board sitting by Finance Minister Edward Scicluna, Buttigieg denied forming part of this grouping, adding that he had never heard of the cabinet being mentioned. 

Yorgen Fenech stands accused of complicity in the murder of Daphne Caruana Galizia. Photo: Mark Zammit Cordina

Asked about the authority’s high-rise policy which had changed when he was at the helm of the organisation, Buttigieg admitted that developers were exerting pressure on the government and the authority to change the policy because they wanted to go higher.

He said similar pressure but against any change in policy came from non-governmental organisations. Pressure was greater when ODZ development was being proposed, he said.

The board asked Buttigieg technical questions on certain PA policies and also whether the planning system in the country facilitated ignoring permits and Planning Authority policies.

Buttigieg spoke about the mentality and culture in Maltese society, which dates back to the 1980s. He stressed that if a permit is not in accordance with the policies, then the permit should not have been issued. 

Revenue Commissioner testifies

Meanwhile, Revenue Commissioner Marvin Gaerty also testified before the board. He said he began investigating as soon as he saw the first reports of the Panama Papers and had even asked the police to proceed criminally. 

"I immediately took action as soon as Daphne Caruana Galizia started mentioning the Panama Papers and even Swiss Leaks. Even though we don't work in the right environment, I do everything I need to do. But the department conducts the investigation administratively, and then it’s up to the police to address the matter from the criminal angle,” Gaerty told the board. 

He said that coordination with the Financial Intelligence and Analysis Unit and with the police was always improving. 

"The reality is that from an efficiency and financial point of view, if there is no register of tax evaders, no criminal proceedings can be brought against them.

"The pity is that the amnesty policy or the possibility for people to regularise their position gives people, especially those in business a chance,” he said. 

He argued that it would be difficult for the department to conduct the necessary investigations if the other systems were not in place.

An accountant by profession, Gaerty said that having an account in Panama did not automatically mean that there was money laundering or an attempt at laundering money. The intention alone is not enough to prove this, he said. 

A big chunk of the 750 companies mentioned in the Panama Papers leak had been investigated but there were others which still had to be probed. The matter, however, is administrative and court action cannot be taken by his department. 

He said he had ordered an investigation into anyone mentioned in the Panama Papers case. He said that if he sees that he has to act, he gets the file and does not look at faces, even people who are politically exposed. As a tax authority, he said he had also contacted the International Consortium of Investigative Journalists (ICIJ).

The board of inquiry is made up of Chief Justice emeritus Joseph Said Pullicino and judges Michael Mallia and Abigail Lofaro. The board is looking into whether the journalist’s murder could have been avoided.

The next sitting will be held on Friday when former Police Commissioner Lawrence Cutajar and Superintendent Antonovich Muscat are expected to take the stand.