A Valletta fish restaurant at the centre of money laundering proceedings against Darren Debono’s stepdaughter is still registered on public records in the name of the official lessee.

The site of the old Valletta police station was originally leased out to Anthony McKay under a tender to convert the premises into a bar and restaurant.

That restaurant, originally named Al Mare, was years later handed down by Anthony McKay to his son Marvin upon retirement and a new lease agreement was drawn up with the Lands Authority, a court was told.

The lease on the place, later renamed Scoglitti and subsequently Porticello, was still in the name of Marvin McKay, a senior lands official explained when testifying at the ongoing proceedings against Florinda Sultana who stands accused of money laundering alongside former bank official Albert Buttigieg.

Both are facing criminal action over their roles in two fish restaurants, Porticello in Valletta and Capo Mulini in Marsaxlokk, allegedly linked to funds derived from oil smuggling.

Both Sultana and Buttigieg were targeted in an extensive police operation last year which cracked down on a €30 million fuel smuggling racket with funds allegedly traced to the two restaurants run by Darren Debono.

There were two files linked to the Valletta restaurant in the records of the Lands Authority, official Martin Bajada testified.

When looking up documentation linked to the lease on the tenement which formerly housed the old Valletta police station, it was “rather strange” that he had come across two applications by persons who had nothing to do with the lease, Bajada said.

Those names were not acknowledged by the department, said the official, making reference to two applications filed by Sultana and Debono.

“To date the lease is still in the name of Marvin McKay,” explained the witness, presenting all relative lease agreements in court.

One file concerned the lease while a second file concerned an encroachment permit granted by the Lands Authority to Al Mare to set out tables and chairs.

The department would have to verify any possible breach of the management agreement, the court was told.

The man still registered as the present-day lessee took the witness stand next.

Marvin McKay confirmed documents showing that the Valletta restaurant had been leased to Darren Debono in 2013 for 30 years at a monthly rent of €3,650 and a €130,000 upfront payment. He explained further that in 2017, following Debono’s arrest, Sultana had approached him saying that they could no longer run the Valletta restaurant. 

That was when Kevin Newell and Wave Catering Limited entered the scene, taking over the running of the restaurant. 

But after some time, Newell gave up the business and McKay was introduced to Marvin Schembri who entered into a new lease agreement with McKay.

That agreement included a general rule whereby the lessee was prohibited from assigning the lease.

Yet, any assignment in favour of Darren Debono or Florinda Sultana would not be deemed to breach that general prohibition, the agreement stated.

Asked by AG lawyer Antoine Agius Bonnici about that exception clause, McKay stated that he could not explain, adding that the agreement had been drafted by a notary.

Pressed further on that point, he insisted, “I don’t know. I don’t remember.”

Asked about some signed receipts, including one which stated, “received from Florinda Sultana €1,000”, the witness said that he had agreed with Sultana to hand over some rent payments to one of his family relatives by way of cancelling outstanding debts. 

Asked about the rent on the Valletta premises which he still received to date, McKay said that he generally used to collect rent money from “the fish factory at the San Ġwann quarry” but he also sometimes went to the restaurant.

The money would sometimes be handed over to him by Debono or Sultana “or whoever had the lease,” said the witness.

Sometimes, he would simply collect an envelope with the money.

The case, presided over by magistrate Donatella Frendo Dimech, continues in December.

Inspectors Joseph Xerri, James Turner and Omar Caruana are prosecuting, assisted by AG lawyers Antoine Agius Bonnici, Sean Xerri de Caro and Andrea Zammit. Lawyer Stefano Filletti is defence counsel.