A businessman had confirmed to the police how he met VAT Department employee Nigel Abela who offered to reduce his pending VAT payments and penalties against a bribe of €2,000, a court was told today when hearings into the VAT fraud case continued.

During this morning's proceedings, eight other cases were put off to October 30. Informed sources said the accused were considering filing a guilty plea, but wished to await the outcome of an appeal filed by the Attorney General over the judgement delivered earlier this month (see separate story).

Meanwhile, in another hearing, the court was told that Msida businessman, Stephen Buhagiar had admitted to police that he met VAT Department employee Nigel Abela with a view of having overdue payments of VAT and penalties reduced.

Police Inspector Angelo Gafa said Mr Abela, who was 'the mastermind' of the whole VAT Department scam, had offered to reduce the amounts owed by the businessman against payment of €2,000, although it did not appear that such a payment was ever made.

Mr Buhagiar is pleading not guilty to his involvement in the scam.

Inspector Gafa said Mr Buhagiar owned money to the VAT Department going back to 2004. A barman had suggested he meet Mr Abela to discuss the matter, and such a meeting was held in Mr Buhagiar's garage, where Mr Abela took VAT returns to Mr Buhagiar.

The police inspector said a police search of Mr Buhagiar's house had turned up VAT returns with handwriting which appeared to be Mr Abela's. Those returns showed Mr Buhagiar in credit.

However the police had since been given other VAT returns which were different, showing Mr Buhagiar owed money tot he VAT. These funds had since been paid..

The case was adjourned to October 30.