Police intelligence in 2018 linked Yorgen Fenech to secret company 17 Black, triggering investigations, a court heard on Friday.
This emerged during testimony by Former Assistant Commissioner Ian Abdilla as court proceedings continued against former superintendent and former head of police’s anti-money laundering unit Ray Aquilina and alleged Daphne Caruana Galizia murder mastermind Yorgen Fenech. Both men are charged with money laundering and corruption.
Co-accused Aquilina is charged with corruption, leaking official secrets, money laundering and perjury. They are pleading not guilty. Notary Mario Bugeja was also charged with money laundering in the same case.
Aquilina was first arrested in April 2021 as part of a wider probe into police and government officials who potentially leaked sensitive information to suspects in the Daphne Caruana Galizia murder investigation.
This came at a time wherein Fenech was meant to be investigated by the former superintendent in relation to the ownership of 17 Black.
As part of this investigation, authorities examined a planned property deal in Birżebbuġa involving Aquilina, which Fenech was suspected of facilitating. Aquilina was supposed to be investigating Fenech over his ownership of 17 Black, a company suspected of being used to channel payments to former officials Konrad Mizzi and Keith Schembri.
Instead of buying the property himself, Aquilina allegedly arranged for his parents to purchase it and later transfer it to him. He claimed this was due to personal reasons, including separation proceedings. He said the purchase would be funded through his own savings.
However, investigators suspected the deal was irregular, as the apartment, valued at over €180,000, was reportedly being sold for about a third of its actual value.
In court, Ian Abdilla explained in court that investigators were aware of this particular intelligence early on and were instructed to proceed cautiously. He reiterated that one of these officials was Ray Aquilina.
Abdilla said he was unaware of any personal relationship between Aquilina and Fenech during the investigation as Aquilina never disclosed or declared it. He only learned about their connection later through media reports.
Abdilla also confirmed Fenech had been under investigation in connection with the murder of journalist Daphne Caruana Galizia, as well as the case involving Melvin Theuma, who admitted acting as a middleman in the assassination.
Abdilla explained that he had been instructed by his superiors to ensure that Ray Aquilina was not involved in the Theuma investigation. This resulted in an unusual and uncomfortable situation where a junior officer had access to sensitive information that Aquilina did not, despite being their superior.
The investigation began in March 2018 following a report submitted to the Financial Intelligence Analysis Unit. Aquilina was among the officials leading the case and Fenech was already identified as the main suspect at that stage, although others were also involved.
Authorities initially sought assistance from Europol and Interpol but were required to submit formal legal requests, known as letters rogatory, to obtain information. These were later sent to Latvia and the United Arab Emirates, with Aquilina involved in drafting them.
Abdilla also explained that a simple FIAU report is not enough to investigate an individual.
Inspector Brian Paul Camilleri also testified that he worked on investigating Fenech’s overseas companies and 17 Black. Aquilina led the investigation under Abdilla’s supervision until April 2020, when Camilleri took over.
Camilleri confirmed that Aquilina sent letters rogatory to gather information from abroad.
Abdilla was suspended from the Malta Police Force in August 2021 following years of scandal and criticism.
Abdilla, who led the Economic Crimes Unit up until January 2020, has faced stinging criticism for alleged inaction on financial crimes, particularly when it came to investigating top officials in the government. He was removed from his post following years of accusations that he sat on evidence of criminal wrongdoing by top government officials.
Abdilla had also admitted having aborted a meeting with murder suspect Yorgen Fenech in November 2018 to discuss the Reuters report that revealed that Fenech owned 17 Black, because his superior Silvio Valletta had told him Fenech was sick.
Police Inspector Sean Friggieri prosecuted with lawyers Andrea Zammit and Gary Cauchi from the Attorney General’s office.
Lawyer Charles Mercieca appeared for Fenech, Franco Debono and Andreana Zammit appeared for Bugeja and Lennox Vella appeared for Aquilina.
Magistrate Lara Lanfranco is presiding.
