The man who’d been so close to the levers of power felt “above the law”. Finally, he’s convicted. He faces two years imprisonment and $200,000 in fines. “Our government only works if people play by the rules, it only works if people are held accountable,” the prosecuting officer declared.
Steve Bannon was Donald Trump’s election campaign chief. He won Trump the 2016 election. Bannon became Trump’s White House chief strategist.
Bannon’s fall from grace has been spectacular. A US jury found him guilty of contempt of congress. He refused to cooperate with the congressional committee probing the January 6, 2021, Capitol riot. He refused to appear and refused to submit documents.
“The defendant chose allegiance to Trump over compliance with the law,” Prosecutor Molly Gaston commented. The committee believed Bannon was involved in the Capitol attack and the attempt to overturn the 2020 election result. The evening before the attack, Bannon warned “all hell is going to break loose”.
His conviction was lauded by the January 6th Committee as a victory for the rule of law: “No one is above the law”.
That applies to the US. Sadly, not for Malta. Here, another election campaign chief helped another man to victory. Keith Schembri was Joseph Muscat’s right-hand man. He was entrusted to co-ordinate the secret meetings with businessmen at Mile End’s fourth floor. He was tasked with orchestrating Muscat’s campaign. And Schembri delivered. Muscat rode to victory.
Like Bannon, Schembri became chief strategist. He became Muscat’s chief of staff within Malta’s own White House – the Auberge de Castille. Like Bannon, Schembri felt he was “above the law” as he engaged in the most sordid activities. He knew he was protected by the most powerful man in the country and could do as he pleased.
Schembri had the police on side. Economic Crimes Unit chief Ian Abdilla went to Castille to discuss with Schembri an FIAU report about Schembri’s alleged money laundering activities. Deputy Police Commissioner Silvio Valletta was passing on information to his personal friend and travel companion Yorgen Fenech.
The attorney general advised the police not to raid the servers of Schembri’s friend, Brian Tonna with whom he was allegedly involved in more money laundering. He was sure that Police Commissioner Lawrence Cutajar was not going to pursue Adrian Hillman for the alleged fraud they committed at the expense of Allied Newspapers. Muscat appointed Hillman on the board of the American University of Malta.
Like Schembri, Bannon was arrested and charged with money laundering. Bannon was part of a private fundraising campaign, ‘We Build the Wall’, that defrauded donors of millions of dollars. Bannon siphoned over $1 million. He was accused of creating “sham invoices and accounts to launder donations and cover up his crimes, showing no regard for the law or the truth”. In a cynical move, President Donald Trump gave Bannon a “full and unconditional pardon” on his final day at the White House.
Schembri set up a secret Panama company, Tillgate Inc, through Nexia BT’s Tonna via the notorious Mossack Fonseca. Leaked e-mails revealed that Fenech’s 17 Black was the main client for Tillgate. Another company, Macbridge, linked to negotiator for the Shanghai Electric purchase of Enemalta, Cheng Chen, was also listed as a main target client for Schembri’s Tillgate. Those e-mails stated: “It is estimated that the companies will generate around $2 million per year”.
As more damning evidence emerged of suspected criminal misconduct by Schembri, Muscat continued to protect him. Like Trump did with Bannon, Muscat effectively provided Schembri with a full and unconditional pardon. Muscat defied even his most senior ministers who were advising him to dump Schembri, and continued to defend the indefensible. “I will never ditch Keith Schembri,” Muscat notoriously said.
As more damning evidence emerged of suspected criminal misconduct by Keith Schembri, Joseph Muscat continued to protect him- Kevin Cassar
On the eve of Schembri’s arrest in December 2019 over his alleged involvement in Daphne Caruana Galizia’s assassination, Muscat welcomed Schembri at his private residence for a night-time meeting. Schembri passed a handwritten letter to Fenech, through their common doctor, Adrian Vella, while Fenech was on police bail.
Schembri instructed Fenech to pin the blame on another of Muscat’s ministers, Chris Cardona. But was Muscat shocked? Not in the least. “I believe Keith did several good things,” Muscat insisted. “I will not be the one who will dump Schembri.”
Bannon has been convicted, just months after committing his crime. Schembri has still not been convicted years after his alleged crimes. He hasn’t even been charged on most of them: his alleged Caruana Galizia assassination attempted cover-up, his letter to Fenech, the alleged leaking of information to Fenech, his illegal access to FIAU reports about his own money laundering, his involvement in the phantom job for middleman Melvin Theuma, his Panama company and its links to 17 Black and Macbridg, and his involvement in the Electrogas project.
Unlike Bannon, Schembri still runs his business. He’s even won compensation for breach of his rights.
Bannon seemed untouchable once. Schembri seemed untouchable too. He was above the law, given unlimited power by one man, Muscat, who continued to protect and cover-up for him for years.
Bannon will soon be in jail. He faces further criminal investigations by New York State prosecutors into money laundering. New Jersey’s AG Office is planning civil investigations.
Here, on the other hand, the AG’s office does everything possible to delay charges to shield Schembri. They know Schembri won’t go down alone; he is inextricably linked to Muscat and many others.
The US Justice Department had no such qualms: “Keith Schembri was involved in corrupt acts that included using his political influence and official power for his personal benefit. Schembri was involved in a corrupt scheme that entailed the award of a government contract for the construction of a power plant for his personal benefit.”
Yet, Schembri continues to enjoy his impunity. He still runs his businesses because Mr Justice Lawrence Mintoff ruled it was “not reasonable” for a person accused of money laundering to cease to function commercially. And he awarded Schembri compensation.
Kevin Cassar is a professor of surgery.