Update 3: Fourth man arraigned in road works bribery case
A fourth man was arraigned in court this afternoon in connection with the road works bribery case.
Godfrey Cutajar, 36, a scrap dealer, admitted to money laundering. The court was told that he used to accept money in order to issue receipts which were then presented to Transport Malta as part of billing for road works.
He was granted bail pending sentencing, against a deposit of €1,000 and a personal guarantee of another €1,000.
Earlier today, two officials of a road-building company and an architect employed by Transport Malta were accused of money laundering, fraud and making false statements.
George Schembri, a director of Alfred Schembri and Sons Ltd and Donald Camilleri, an accounts clerk, were arraigned after a year-long investigation in which three Transport Malta officials were also questioned and more than 20 road works contracts were studied.
The two pleaded not guilty.
The prosecution said that the accused had made an unlawful profit of over €500,000 over two years to the detriment of the government. They asked for the financial assets of the two men to be frozen while the case was heard.
The court accepted the request.
The accused were remanded in custody.
Architect Gordon Zammit, who works in the roads directorate of Transport Malta was arraigned separately. He was arrested on Monday along with two other Transport Malta officials, but while Mr Zammit was kept under arrest, the other two were released yesterday.
The prosecution said that the company's project manager and the company's architect - who had no knowledge of the scam - would issue the normal itemised bill, which was then sent to Transport Malta, where Architect Zammit would increase the amounts.
Once the bill was settled by Transport Malta, the company pocketed half the difference, and architect Zammit kept the remainder. The accounts clerk knew what was going on but did not receive any money, the police said.
Mr Zammit was also remanded in custody.
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Lawrence Fenech
Mar 6th, 09:42
This emphasises the "Whistle Blower Act " of which Gonzi is afraid of.
pat muscat
Feb 23rd, 14:11
An other dip in Transparency International ! Vera bezzuli biex dawn gew investigati! Is- soltu l-iskuza tkun mur ghand il-Kummissarju! Kif iltaqghu dawn minn fuq il-yellow pages ukoll?
Charles W. Sammut
Feb 22nd, 19:46
I have been writing about this for years.
Some 4 years ago, in an email, Dr Gonzi told me that " . . . to be accused of not being able to provide decent roads is the epitome of indecency."
Well, Mr Prime Minister, now we know who is the epitome of indecency.
M Cauchi
Feb 22nd, 18:53
All it took was a EU statistical survey, and now everybody is reacting. At least we are doing something about it.
James Mizzi
Feb 22nd, 18:50
Another scandal. And God knows what is really going at TM. No wonder why we have the worst roads in Europe. Shame on you TM. Don't rush with resignations!
B Attard
Feb 23rd, 08:07
Even he roads in Tunisia are far better than Malta.
D. A . Agius
Feb 22nd, 18:30
As usual, seems like this had been going on for some time.
Whistleblower's Act anywhere in sight?
Government Fraud reporting hotline anywhere in sight?
Decent, Independent, pro-active, efficient Government Fraud Office anywhere in sight?
Lots of hot air against corruption... no serious measures, nor proposals
John L Galea
Feb 22nd, 16:01
This case is just a chip off the corruption prinjolata of Malta.
B Attard
Feb 22nd, 15:12
Bil-kas ta' dawn it-tnejn se nsolvuha l-korruzzjoni. Li kellu jitressaq kull korrott li hawn Malta il-qorti jkollu jibda jahdem 24x7 forsi f'10 snin jigu solvuti l-kasi kollha.
B Attard
Feb 22nd, 15:11
Bil-kas ta' dawn it-tnejn se nsolvuha l-korruzzjoni. Li kellu jitressaq kull korrott li hawn Malta il-qorti jkollu jibda jahdem 24x7 forsi f'10 snin jigu solvuti l-kasi kollha.
Victor Pulis
Feb 22nd, 15:02
Incompetence is one thing but corruption is another kettle of stinking fish. We all remember the driving licences scam not too long ago. As i said before water off a duck's back since we have no accountability laws and no culture of resignation.Some people think. and rightly so that no mtter what they do they are untouchables. In fact they always find some big brother to come between them and he tax payer and protects them by assuming responsibility.
Charles Micallef
Feb 22nd, 14:51
We are here talking of €500.000 plus, taxpayer money which could have gone a long way to elimenate some of the hardship caused by the tariff bills on those living on the breadline!!! and let no one else tell you different, this is the tip of the iceberg!
Charles J. Buttigieg
Feb 22nd, 14:31
An open can of warms? What?
Ryan Attard
Feb 22nd, 14:27
Hemm huma sur Gonzi l 40 miljun kif tista iggibhom. Imbghad tmur taghmel siegha overtime u lanqas jibqa xejn f idejk.
Ahdem Gahan malti halli s sinjur jiekol min fuq iz zghir
Lawrence Fenech
Feb 22nd, 14:27
Il-korruzzjoni saret bhal-lakumja tiggebed l'hawn u l'hemm.
John Zammit
Feb 22nd, 14:15
Honesty should start from top So if these are the small fish police should probe for the Shark
Joseph Vassallo, (Bugibba)
Feb 22nd, 14:08
This warrants a serious TECHNICAL audit, not just a financial audit.
I suggest that Enamalta's tunnels should have similar TECHNICAL auditing because the cost of €2,000 per metre of unsupported and unlined tunnelling in globigerina seems to be overpriced. These tunnels will eventually have cost the better part of €100,000,000 as I explained when the project made the news last November here... http://www.timesofmalta.com/articles/view/20111129/local/Invisible-power-lines.396072
henry caruana
Feb 22nd, 13:58
H. Caruana
Il Fule bint il mizwet
Mr Albert Dimech
Feb 22nd, 13:53
What happened to the €10 million VAT scam?? Not to mention the infamous Qawra land donated to Tcom.
Jay Oatmon
Feb 22nd, 13:44
For me the questions are:
1. Will these people if found guilty get the usual (VAT, ADT etc) tiny fine and suspended sentences?
2. Will there be any change in the procedures to reduce the chance of this re-occuring?
3. Will the government investigate other 'shoddy workmanship failures' by other companies who failed to follow the correct building standards etc?
My guess is nothing will change and Malta's government will continue to ignore the public's need for accountability and transparency - how can they make their extra money if they change this corrupt system.
henry caruana
Feb 22nd, 13:31
H. Caruana
Il FULE bint il MIZWET
Mr Lawrence Mifsud
Feb 22nd, 13:27
Bil-korruzzjoni fil-Kunsilli Lokali u f'entitajiet oħra, wieħed jistaqsi, li kellna nsibu ż-żejt, kemm ikollna serq aktar minn dan?
Christopher Dimech
Feb 22nd, 16:41
Inkunu bhall-Libya.
joe vella
Feb 22nd, 12:48
If anybody is now going to have a look at how transport malta operates I would suggest that the project and the costs attached to the construction of the road from victoria to gharb in gozo be checked
this road, if I am not mistken, was completed at a huge cost overrun and after a few years is already showing signs of deterioration
there is at least one pothole close to the archway near the sta lucia junction
at least one of the manholes is sunk below the road level
the surface is becoming more and more 'wavy'
and one has to point out that this road is in gozo where the amount of vehicles using the road is not as high as in malta
Patrick Zammit
Feb 22nd, 12:35
Regarding roads and if we really believe that we are a Smart country, we should first see why newly laid roads which have to be first certified by TM before payment is made to the contractors, start developing serious damage shortly afterwards.
Franco Abela
Feb 22nd, 14:23
Just have a look at the meteor crater in Qormi just infront of Arriva's park & ride. The street was done only some months ago.
B Attard
Feb 22nd, 15:04
@Franco abela regaw irrangawha izda xoghol bawzi bhas-soltu ghax sal bierah fi-ghaxija reget bdiet tinqala' Dizastru shih.
T Cassar
Feb 22nd, 12:33
'to the detriment of the GOVERNMENT'.....come again please.....did you mean to say TAX PAYER perhaps?
Mr Daniel Jones
Feb 22nd, 12:20
Does anyone know what the cost of roads per km in Malta is compared to other european countries? So far I have not seen any hardcore or aggregate layers put down prior to the surface asphalt layer. IT seems that the asphalt is laid on top of the clay, which explains why we get potholes and and waves bigger than those found in the sea after a very short time, even on new roads.
If the price is the same as other places, then it is obvious that funds are being skimmed off because the standard is definitely lower. Look at the section of road just laid from Zebbug to Attard. Already the manhole is subsiding after just a month. Look at the road from Zebbug to Mdina, cracks, potholes and subsiding manholes - and this was supposed to last 10 years. Its not even been 5.
Charles Zammit
Feb 22nd, 12:14
As they say in Maltese " Bix xghol il hotba tghamel " With work only a hunch on the back is gained !!!
R. Balzan
Feb 22nd, 12:12
That's what you get when you have ministers or politically-appointed individuals who have no control and no idea what is happening in the companies/entities falling under their responsibility. I bet anybody that these shenanigans have been going on for many many years and a number of people have got rich as a result. Who said corruption in Malta is only a perception in people's minds? It's there, alive and growing like the proverbial beanstalk - watered by the lack of accountability of various ministers over the years and the inefficiencies of their blue-eyed appointees in their "hokkli-darhi" political games. Am I exaggerating? As somebody else said - this seems like just the tip of an iceberg which should shame the democratic christians in government.
rita Farrugia
Feb 22nd, 14:18
Shame for arraigning the alleged culprits? Don't you remember the days when the late Lorry Sant was roads minister of the labour govt., or the recent story of the 7,000 euros paid to a Labour MP by the Mosta Local Council for 2 years consultancy on road works?
R. Balzan
Feb 22nd, 15:56
@ Rita Farrugia - corruption is a disease whether it's done by Lorry Sant or anybody else. However as we live in the here and now - and not 30 years ago or more - we should be more concerned not to repeat the mistakes of the past. Unfortunately corruption in Malta today has become so institutionalized that the latest Eurobarometer survey claims that the great majority of the Maltese perceive it as a major problem in Malta. That's today, 2012. That's what you get when nepotism replaces meritocracy in public appointments and when ministers are not accountable for anything.
Wally Vella-Zarb
Feb 22nd, 16:02
Rita Farrugia, what are €7000 for TWO YEARS of consultancy when compared to the more recent €6000 PER MONTH???
David Bailey
Feb 22nd, 12:07
And we wonder why our roads are in a precarious state.. contractors skimming off the top and obviously using sub-standard materials to reduce costs. I have been on forest roads in the middle of nowhere in the UK that are better than our main roads, yet they pay no registration taxes and the annual licenses are cheaper.
Pavlaki Pano Aroditis
Feb 22nd, 12:06
This company, Alfred Schembri and Sons Ltd, has also been the beneficiary of EU funds. See link to the following page:
http://support.maltaenterprise.net/Documents/ES-Energy/Beneficiaries/call2.pdf
The case will have to be proved in court, so they deserve every right under the law, But if there has been any wrong doing, then the EU Commission should look into Transport Malta auditing procedures. Most of our "Authorities" appear to have a sterling reputation (MEPA, Transport Malta - driving licenses anyone?). Keep it up, lads!
Charles Micallef
Feb 22nd, 11:26
This is the tip of the proverbial iceberg..... which the taxpayers have been paying for many many years!
PM Camilleri
Feb 22nd, 11:42
and which explains also the shoddy work!!
marco caruana
Feb 22nd, 11:24
oh la la...fl ahhar ! well done...issa nistennew show eh mill qorti !
Ryan Attard
Feb 22nd, 14:30
Is show fuq it television tarah siehbi mhux mill Qorti Maltija ghax rieqda raqda