Gifts did not amount to corruption - commission

In an investigation sparked off by the Anastasi report on alleged irregularities on advances made by Mid-Med Bank Ltd, the Permanent Commission Against Corruption ruled there were no indications of corrupt practices in the granting of gifts to a number of people in the 1980s.

The commission's report was tabled in parliament yesterday by Justice Minister Austin Gatt.

The commission, chaired by Judge Albert Manché, recalled that, among other things, the Anastasi inquiry had recommended that the Permanent Commission Against Corruption should further investigate the alleged acceptance of gifts by ministers, officials of the Malta Development Corporation and others.

The commission described this recommendation as strange, arguing that it could not do much more than what the inquiry board itself had achieved. The commission could only investigate to find out whether there had been any trace of corruption and then submit a report to the Justice Minister who had the discretion as to how to proceed.

The commission referred to a paragraph in the Anastasi report which said: "And, if it can be proved that these gifts were received and accepted by the named and unnamed recipients then even they must be presumed to have been corrupted".

This, the commission commented, went against the general principles of justice and of the law which laid down that every person should be deemed innocent until proved otherwise. In addition, the Anastasi report failed to give recognition to the element of specific intent.

The commission noted that, irrespective of the type of gift in question, the mere fact of giving a gift to somebody would not, on its own, lead to successful prosecution on grounds of corruption. The element of intent had to be proven.

Indeed, the commission said there had been nothing to indicate that the gifts in question were such that could give rise to suspicion of corruption.

It said the people who had allegedly received gifts were architect Karmenu Vella, then Minister of Industry; Prof. John Mamo, legal adviser to Galtom Ltd - whose accountant had claimed that a number of persons had received about Lm8,000 in gifts; Dr Joseph Buttigieg, then chairman of Mid-Med Bank; Mr Francis Flynn, general manager at Mid-Med Bank; and Prof. Noel Zarb Adami, general manager at MDC.

Mr Vella had denied ever receiving any gifts as indicated on Galtom's books.

Prof. Mamo said he could have received some small gifts, such as cooking utensils, but could not clearly remember whether he in fact did. The commission said Prof. Mamo was the company's legal adviser and, hence, gifts given to him could not be considered as amounting to a corrupt practice.

Dr Buttigieg also denied receiving any gifts, adding that a bank client could have sent to the bank samples of items he planned to manufacture and for which he was seeking finance.

On his part Mr Flynn had declared he could not consider to have been bribed and that throughout his dealings and judgements he had not in any way been influenced or biased by any gifts and nor did he ever try to deceive his superiors by withholding any information.

Prof. Zarb Adami had admitted that he had received a number of utensils as a gift during a visit together with Mr Vella. The commission said there was nothing to indicate that Prof. Zarb Adami could have been guilty of any corrupt practice. However, it described as imprudent and indiscreet a request Prof. Zarb Adami had made to purchase pans from a company that could have been interested in setting up shop in Malta when he was visiting the said company in his capacity of MDC general manager.

Sitting on the commission were also Dr Raymond Zammit and Col. John Harrison.