Keith Schembri indicated during a police interrogation that he knew about the contents of a confidential FIAU report on 17 Black and potential corruption in the government energy deals, sources have confirmed.
Schembri was questioned about his links to 17 Black back in November 2019, after the company’s owner, Yorgen Fenech, implicated him in journalist Daphne Caruana Galizia’s murder.
The former chief of staff argued during the interrogation, the insiders say, that no transactions ever took place between his Panama company and 17 Black.
Schembri encouraged homicide investigators to speak to their colleagues in the economic crimes unit about the Financial Intelligence Analysis Unit (FIAU) report, in a bid to back his assertion that no transactions had taken place.
Schembri’s statement to police investigators raises questions about his apparent inside knowledge of the report’s contents and the probe into 17 Black. An inquiry into state responsibility for Caruana Galizia’s death concluded there was “direct and suspicious interference” by Schembri into the police’s fledgling 17 Black investigation.
The sources with knowledge of Schembri’s interrogation said that he had also suggested investigators check on the progress of a behind-closed-doors magisterial inquiry into 17 Black.
The inquiry is known to have made little progress after the economic crimes unit botched a request for information from the United Arab Emirates by listing incorrect bank account details for 17 Black.
Inquiry board found the police did hardly anything to investigate media reports
“Speak to the economic crimes unit, check the FIAU report. You will see everything… speak to the ECU, you can see the FIAU report… I believe it was close to the truth, if not the truth,” Schembri urged homicide investigators.
When questioned by interrogators about media reports detailing plans for his Panama company to received hefty payments from 17 Black, Schembri again referred homicide investigators back to the confidential FIAU report.
“You have the FIAU report. There is no need to quote the media,” Schembri said.
E-mails found in the Panama Papers uncovered plans for 17 Black to send up to €2 million to offshore structures opened by Schembri and former energy minister Konrad Mizzi.
The plans were disrupted in February 2016, when Caruana Galizia first teased knowledge about the offshore web of companies.
Although a transcript of an early draft of the FIAU report referred to by Schembri was leaked to the media, the anti-money laundering unit had at that stage failed to identify who owned 17 Black or the full raft of suspicious transactions involving a web of shell companies.
The complete report detailing Fenech’s ownership of 17 Black and suspicions of money-laundering in energy deals overseen by Mizzi was only finalised and sent to the economic crimes unit in March 2018.
Former economic crimes unit chief Ian Abdilla has admitted to twice being called to the prime minister’s office by Schembri to discuss leaked FIAU reports.
He claims he merely advised Schembri to consult a lawyer during these meetings.
Abdilla was suspended by police commissioner Angelo Gafà this month after a scathing report about police inaction into allegations of government corruption and financial crime.
The Daphne Caruana Galizia inquiry board found that the police “did hardly anything” to investigate media reports.