Judge orders AG to indicate basis for Vitals freezing orders values

A judge also ordered that a number of court experts assisting in the Vitals inquiry be called to testify about the amounts stipulated in freezing orders

By: maltatoday.com

Aug 19 2024
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Judge orders AG to indicate b

The Criminal Court has upheld a request that it call several experts who assisted the inquiring magistrate investigating the Vitals Global Healthcare deal, to testify in order to understand how the amounts stipulated in the subsequent freezing orders had been arrived at.

Madame Justice Edwina Grima presided over sittings in two cases which had been filed by Jean Carl Farrugia, Kevin Deguara, Deborah Chappell and Kenneth Deguara, to attack the multi-million euro “seize and freeze” orders imposed over their assets, following the conclusion of the Vitals inquiry.

The judge also ordered the Attorney General to indicate the passages from the inquiry upon which it had based the amounts in the freezing and seizure orders.

This morning, the defence lawyers informed the court that they had filed a “voluminous” reply to the prosecution’s written submissions.

Appearing for the Attorney General, prosecutors Rebekah Spiteri, Francesco Refalo and Shelby Aquilina declared that they had no further evidence to submit with regard to the request and objected to the defence asking the court to hear the inquiry experts. The law does not state that the court had to hear witnesses in such proceedings, argued the prosecutors, and neither did it bind the prosecutors to testify.

Lawyer Roberto Montalto asked that the court hear evidence in support of the defence’s arguments, “primarily the experts who assisted the Vitals inquiry.” The other defence lawyers also made the request which was entered into the acts as a collegial one. The court allowed the defence to submit a note with a list of the names of the experts concerned.

Spiteri submitted that the AG did not need to exhibit further evidence and would be resting on the inquiry.

After lawyer Joseph Mizzi added that the defence could also need witnesses from the Office of the AG or the Police, the court directed him to include the names of the witnesses in question, together with the reasons for which the defence wanted them to testify.

The judge warned that she did not want “any doubling of evidence.” “If the testimony is new, they will be heard, but otherwise they are to indicate the part of the inquiry referencing the evidence in question.”

The AG objected, in particular to the request that prosecutors be called to the witness stand.

Mizzi explained: “We didn't have an opportunity to ask the AG why this freezing order was requested for Deborah Chappel and the only people who can answer that question are from the AG. It is just not a question of submissions, but one of evidence. The court must be convinced that there is sufficient evidence to support [the freezing order]. To base our reply correctly, we need to understand why the order was needed.”

“Our colleague said that the AG doesn’t testify,” lawyer Franco Debono added. “But in recent years the AGs role has changed, as had the law, and now the AG is also obliged to take an oath on the charges. They must now testify. Either we are going to live this new reality or stay stuck in the past.”

Spiteri pointed to the Constitution, where the AG’s independence is entrenched. “If we testify…we are going to be making ourselves subject to direction, thereby placing the entire prosecution in jeopardy.”

Debono insisted that the prosecutors who took an oath on the charges can testify, arguing that this was the legislator’s intention.

Adopting a more practical approach, Montalto submitted that the AG was basing its position on the inquiry. “So before we file our note, we are going to ask them to indicate which documents from the inquiry they are basing themselves on.” He reminded the court that it was dealing with a freezing order for €40 million.

The court appeared to agree, telling the prosecutors that it would be better if they carried out this exercise before the experts were brought to testify.

It was observed that earlier today the same court had given a decree in a related case involving Shaukat Ali in which it ruled that the place where freezing orders are to be contested “is here, before the Criminal Court.”

The court upheld the defence’s request that it hear the testimony of the inquiry experts. The request for the AG to be called to the stand was rejected, but the court ordered the AG to file a note to indicate what parts of the magisterial inquiry she is basing her request on. The sitting was adjourned to September.

Freezing order law “can breach fundamental rights”

In a related case before the same judge, lawyer Franco Debono informed the court that the defence wanted to await the outcome of a pending Constitutional case in the names Repubblika ta Malta v Joseph Muscat et before determining its challenge to the freezing and seizure orders.

Debono suggested that the law, as it currently stood, could give rise to breaches of fundamental human rights. “When you have several defendants facing [freezing and seizure orders] for a large amount, if it emerges that one defendant’s benefit was minimal, then the joint and severable liability would result in a breach of [that defendant’s] right to property.”

The law already limited such orders where there is an incidental involvement, added the lawyer, but said this situation could also arise where the person in question was a central figure but made very little gain.

The judge upheld the request for a suspension of the 7 working day timeframe in which it must decide the defence’s request and placed the case in abeyance until the Constitutional case is decided. The freezing and seizure order imposed by the compiling court will remain in place during that period.

Lawyers Francesco Refalo, Rebekah Spiteri, Shelby Aquilina are prosecuting. Deborah Chappell is being assisted by lawyers Roberto Montalto, Joseph Mizzi, Alan Muscat. Franco Debono and Stefano Filletti. Jean Carl Farrugia, Kevin Deguara Kenneth Deguara, are being assisted by lawyers Jonathan Thompson and Ezekiel Psaila.