Private investigator jailed for fake report

A private investigator was yesterday jailed for two years after a magistrate found him guilty of fabricating a report in which he claimed there had been irregularities in the allocation of a Mater Dei Hospital tender.

Magistrate Giovanni Grixti handed down the judgment after noting that the report compiled by Joseph Zahra "contained fictitious allegations of national scandal, could have led to criminal procedures being taken against innocent people and could have also had very serious repercussions..."

In July, 2004, Mr Zahra, 53, of Marsascala was charged with filing a report against people he knew to be innocent and spreading false news that could alarm the public when he compiled the report dated December 25, 2004.

He was also charged with simulating an offence, fabricating evidence and false news, defaming several people and working as a private investigator without a licence.

In the compilation of evidence that followed, Magistrate Grixti heard how the case originated when Simed International, Hospitalia GmBH and Inso SpA submitted bids for the Lm25 million contract for the supply of the new hospital's medical equipment.

When the director of contracts awarded the tender to Inso, the other two bidders appealed.

In early November 2003, an appeals tribunal annulled the decision by the director general of contracts, disqualified Hospitalia from the tendering process and ruled that Simed ought to be given the opportunity to clarify aspects of its bid in order to satisfy certain conditions of the tender documents.

In December 2003, the board decided to award the tender to Inso again and the Finance Minister, then John Dalli, also decided in favour of Inso.

For this reason Simed decided to appoint a private investigator to look into why the contract had been awarded to Inso.

Among several witnesses, the magistrate heard Prime Minister Lawrence Gonzi explained how, on June 11, 2004, he and his personal assistant attended a meeting with Simed representatives Joseph Fenech, Raphael Fenech Adami and Frank Farrugia.

During the meeting he was presented with a report, signed by Mr Zahra, alleging irregularities in the allocation of the hospital tender.

In his evidence, Police Commissioner John Rizzo said that, in July 2004, the Prime Minister had passed on to him the report complied by Mr Zahra in order to investigate.

In the report (reproduced verbatim in the judgment - see box) Mr Zahra claimed that Claudine Cassar, who is the daughter of the former director of contracts Joseph V. Spiteri, had met Inso representatives and spoken with Mr Dalli's brother Sebastian.

The report alleged that following several meetings held abroad between Ms Cassar, Mr Spiteri and Mr (Sebastian) Dalli and foreign men, the Mater Dei Hospital tender was awarded to Inso. It also alleged that the people mentioned in the report received large sums of money once Inso got the contract.

The police first spoke to Mr Zahra informally and he explained how he had compiled the report. But, as the conversation progressed, the police noticed discrepancies in Mr Zahra's version and cautioned him that he was now being interviewed as a suspect.

During investigations, Mr Zahra admitted that he had invented the content of the report because his client, Simed vice-president Sietse Zoodsma, was persistent and he did not have hard facts to present him with even after he had accepted payment.

The police also exhibited a draft contract between Professional Private International Limited, run by Mr Zahra, and Mr Zoodsma stating that Mr Zahra's company would get three per cent of the value of the tender if it were to be awarded to Simed.

The magistrate heard Ms Cassar, Mr Spiteri and Mr Dalli deny all allegations made in the report. Moreover, their passports showed that they were not abroad during the dates listed in the report.

Ms Cassar and Mr Dalli denied even knowing each other while Mr Spiteri said he knew Mr Dalli but was never involved with him over the new hospital tender. All three denied knowing the foreigners mentioned in the report.

On evaluating the case, the magistrate noted that, although there was no strong evidence that Mr Zahra had fabricated the report to get particular people into trouble, according to law it was sufficient to prove that he was aware that his report could land innocent people in trouble.

A former police officer, there was no doubt that Mr Zahra had the capacity to realise that the consequence of the content of his report could have easily had negative repercussions on those mentioned in it.

Magistrate Grixti found Mr Zahra guilty of all charges brought against him, jailed him for two years and ordered his general interdiction for five years.

The Zahra 'fictitious' report

The following are the contents of the report compiled by Joseph Zahra and which Magistrate Giovanni Grixti yesterday ruled "contained fictitious allegations". It is reproduced as found in the court judgment - including the errors it contained - but telephone numbers have been omitted.

Date 25th February 2004

Simed International Bv

Sietse Zoodsma
Managing Director

Reference is made to Mater Dei Hospital Investigation. Investigations, so far has reviled the following:

On the 26th October 2002:
A meeting was held at Il Convento Hotel 137/a Via Speranzella Napoli
Between: Claudine Cassar on her own interest and that of her fathers, Joseph V Spiteri
And: Marco Fontanelli on behalf of Inso with regards.
Mater Dei Hospital
And computing contract for Mater Dei Hospital.
Meeting started at about 4.00pm and continued out of hotel till about 1.am. Soon in the morning from Claudine Cassar room no.21 there where registered
3 telephone calls to 00356 21 XXXXXX Joseph Spiteri her father
2 telephone calls to 00356 21 XXXXXX Sebastian Dalli

November 14th, 2002.
A meeting was held between Sebastian Dalli Marco Fontanelli at the head office of General electric (Etruia) present also was Glan Luca Cerrina Feroni President.
At that same evening Sebastian made several calls on his mobile to Claudine Cassar and Joseph Spiteri.

March 12th 2003
A meeting was held Hotel Astoria A Boscolo Via del Giglio 9 Florence.
There present where: Sebastian Dallli, Claudine Cassar, Marco Fontanelli and Amedeo Andreini.
During this meeting several telephone and mobile calls were made. To Malta. Most of which where intercepted and logged.

November 10th 2003,
Marco Fontanelli made 2 calls to Claudine Cassar. One at 10am just before he entered to:
Banca Poplare di Verona and soon after he came out.

December 30th, 2003:
A swift passed from Bank Popolare di Verona to Banca Intesa Via Segantine 4 Empoli Firenze. By tele-Banking from marco Fontanelli.

January 6th, 2004,
Marco Fontanelli transfer 2.3 million euros to Bank Intesa 90 Queen Street, London EC4N ISA
On Swift code BCIT GB 2L
Administere by Frnaco Aleramo Lanza.

January 12th 2004.
Bank Intesa of London transfers the same money to Honk Kong Branch The Land Mark 15 Queen's Road Central SAR On swift code BCIT HK HH. At this stage it was noted through telephone conversation that this 2.3 m. Is part of payment before actual payment is done, some payments start to be paid by the Maltese Government.
During these last week of investigations I had been lessoning to recording and pickup trails of money. All documentation and recordings came be provided. Some, with legal acts. Others, as I had explained before they will have to be bought.

Joseph Zahra
Investigator.