Corruption commission probes 1989 allegations

The Permanent Commission Against Corruption has notified the justice minister of the outcome of investigations into allegations made in 1989 involving, among others, two former ministers, now both deceased, and a former deputy chairman of Enemalta.

The alleged acts of corruption took place between 1980 and 1987.

The commission, chaired by Judge Albert Manché, noted that the person who had originally made the allegations to the police in late January 1989 had retracted the same allegations when he appeared before it in mid-November 1997.

The commission said its role was not that of a tribunal or, much less, a court of law. Thus, it did not have the competence to either condemn or acquit people allegedly guilty of corrupt practices. Its role was to probe such alleged practices and then report on the outcome of such investigations to the minister responsible for justice. And that was what it was doing in this case.

The case dates back to January 23, 1989, when Robert Borg, majority shareholder of Rob. Borg Construction Co. Ltd, gave a statement to the police about alleged corruption in connection with the building of a block of apartments in Qawra.

In his statement Mr Borg had said that a planning permit had not been issued and so he had decided to speak to former Minister Lorry Sant about it. On one occasion Mr Borg said he had called on Mr Sant at the latter's house in Fgura and the minister had sworn at him and accused all contractors of being thieves.

Eventually, Mr Borg said he had been told by a person to approach Joe Pace, owner of the Magic Kiosk. Mr Pace had said that for a permit to be issued he had to be given one out of every six apartments built.

Mr Borg said he also had problems to obtain the power supply and Mr Borg had told him that the matter could be solved if Mr Borg did some work, free of charge, on a villa which Salvu Sant was building in Ibrag.

He told the police that five days prior to the opening of the apartment block, he had received a telephone call from Tourism Minister Danny Cremona who insisted that unless he was given Lm6,000 the police would not allow the opening to go ahead. Mr Borg said he used to send the money to Mr Cremona through Joe Agius, then chairman of the Catering Board.

Mr Borg said that Karmenu Mifsud Bonnici, then Deputy Prime Minister, had tried to find out from him whether he had paid any money. However, Mr Borg said he would not speak as he knew that if he did he would end up in jail.

When Mr Borg appeared before the commission on November 14, 1997, he declared that whatever statement he had made to the police had been the result of undue pressure on him. "The police had wanted me at all costs to say I had paid (money) or imparted favours to the political personalities indicated. My aim was to return home," Mr Borg told the commission which noted that whereas there was a Labour government on November 14, 1997, Malta had been under a Nationalist government in 1989.

The commission said it was clear that Mr Borg had spoken the truth when he made his first statement to the police in January 1989. This was because the resultant circumstances led one to conclude that the "sale" to Mr Pace's company did not make sense had it been a true and genuine business deal.

It said the change of heart by Mr Borg was probably due to opportunism on his part given the change in government. The commission also noted that a statement or confession could only be considered as proof against the person making it and not against third persons.

Sitting on the commission also were Col John Harrison and Dr Guido Saliba.