University freezes two deals pending Italy probe

The University said it had suspended cooperation agreements with a Maltese research firm and a reputable Italian medical foundation recently implicated in an alleged €12 million money laundering case in Italy.

The University said it had signed collaboration agreements with SIB Laboratories Ltd and the Fondazione Salvatore Maugeri to support collaborative research in the area of biomedical engineering after verifications about their standing.

Through the agreements, the parties established two awards: the Premio Salvatore Maugeri, an annual prize of €500 awarded to the best final year student project in biomedical engineering; and the Salvatore Maugeri Student Research Award, a €9,500 annual fund to provide support to final year student projects.

“The University of Malta entered into these agreements in good faith and after conducting its own enquiries concerning the other parties involved, which did not reveal anything irregular. The University only learned of potential problems through the press and has since suspended its agreements with the two entities pending further investigations by the competent authorities,” it said.

The foundation is at the centre of a €56 million money laundering inquiry, of which €12 million were allegedly transferred to Maltese medical research company Sib Laboratories Ltd.