Worker 'made €186,350' from scam

A VAT Department employee had admitted to the police that he made Lm80,000 (€186,350) from bribes from people who wished to have their VAT bills reduced, a police inspector told a court this morning.

Inspector Angelo Gafa was giving evidence in the case against Nigel John Abela of Dingli, one of 32 people arraigned this morning in connection with alleged major fraud at the VAT Department. He is pleading not guilty.

Inspector Gafa told the court that investigations had shown that Mr Abela suffered a cocaine addition. His lifestyle also showed that he lived well beyond his means.

He said Mr Abela had made eight statements to the police and initially admitted to making an income of Lm80,000 from the case.

He had told the police that the scam started some years ago when he used to work in the VAT Department's Customer Care Division. Clients used to complain about their pending bills and fines, and he used to contact them after hours and ask for money in return for reducing their bills.

He had claimed that he was assisted in his scam by Alfred Mallia and Salvu Micallef, who did not work in the VAT Department.

Their clients used to pay between €100 and €5,000 in bribes, Mr Abela had told the police but, Inspector Gafa said investigations showed that there were people who paid a lot more.

The inspector said that Mr Abela had also told the police that also involved in the scam were Emanuel Hili from the VAT Inspectorate Department and Charles Deguara and Charles Caruana, also VAT Department employees.

Mr Abela had admitted that substantial funds deposited in his bank account came from the scam.

He had said that his cocaine addiction cost him €300 daily, but he refused to reveal his drug suppliers.

Ruth Gatt, his partner and a VAT employee, had opened a bank account where money owed to Mr Abela would be deposited and then she would then issue cheques to Mr Abela, the inspector said. Mr Abela had admitted his procedure, saying he had set it up in order to hide matters from his wife in view of a separation process.