Attorney General Peter Grech yesterday defended himself from accusations that he had not taken any action despite having been in possession of ‘evidence’ of alleged kickbacks by the Prime Minister’s chief of staff for over a year.

When contacted, Dr Grech told Times of Malta that he did not have the power to initiate a prosecution or to conduct investigations, as the law gave this power solely to the Police Commissioner.

“It must be clarified that under our law and constitution, the Attorney General does not, contrary to what appears to be popular belief, have the power to start investigations or to initiate prosecutions,” Dr Grech said.

“However, it would certainly be inappropriate [for the Attorney General] to make public statements, going beyond his legal functions, especially when relating to the subject of a pending inquiry or to matters of current political controversy,” he added.

At a political activity yesterday, Nationalist Party leader Simon Busuttil said that he was still “expecting an explanation on the Financial Intelligence Analysis Unit (FIAU) investigation” from Dr Grech.

Last week, The Sunday Times of Malta reported that both the Attorney General and the Police Commissioner were informed in writing and presented with documents showing that Mr Schembri may have received kickbacks from the Individual Investor Programme for the sale of passports.

Despite the fact that both Dr Grech and Police Commissioner Lawrence Cutajar were given the documents a year ago, no investigations were initiated by the police and no arraignments were made.

The alleged IIP kickbacks were made public only last week, when Nationalist Party leader Simon Busuttil said he had received “documented evidence” that showed Mr Schembri had received €100,000 from the proceeds of the sale of passports to three Russians, arranged by Nexia BT boss Brian Tonna.

These kickbacks were allegedly transferred through accounts held at the small, Ta’ Xbiex-based Pilatus Bank, which obtained a licence from the Malta Financial Services Authority following Labour’s return to power in 2013.

In such a delicate situation, I can only rely on my judgement

Dr Busuttil presented the evidence to the inquiring magistrate, who is currently investigating separate claims that the Prime Minister’s wife is associated with Panama company Egrant. Dr Muscat’s right-hand man denied the kickbacks and said the deposit had settled a personal loan made to Mr Tonna in 2012.

On Thursday, the magistrate decreed that after sifting through the evidence, there was enough reason for the claims to be investigated separately by another magistrate, who would decide whether charges should be issued.

Times of Malta is informed that both Dr Grech and Mr Cutajar have been given reports on the Panama Papers and the operations of the Pilatus Bank, recommending further investigations and possible prosecutions related to money laundering by top government officials.

Asked to clarify his position, Dr Grech defended his actions, saying he could not make any public statements “irrespective of what others may, for reasons known to them, choose to allege.

“In such a delicate situation, I can only rely on my judgement that I am implementing my constitutional duties as I am obliged to, and I am more than convinced that I am carrying out my duties in full loyalty to the Constitution. For this I am answerable to Parliament,” he said.

Claiming that it would not be wise to grant interviews – as requested by this newspaper – Dr Grech said he “strongly believed that the magistrate should be allowed to do his duty without the subject of his task being also commented upon in public statements by persons occupying other constitutional offices”.

Criminal lawyers who spoke to this newspaper said the Attorney General was legally right in saying that the power to investigate and initiate prosecutions rested with the Police Commissioner.

“Dr Grech is legally right over the matter, and even if he knew of the alleged claims about the Prime Minister’s chief of staff, he could not do anything, as it is the role of the Police Commissioner to investigate,” a senior lawyer said.

“The problem, in this case, is the Police Commissioner. It is only he who has the legal obligation to investigate, arrest and bring people to justice. If he refuses to do so, the Attorney General cannot really interfere,” he said.

At the same time, the lawyers argued that “it also depends on how strong the character of the person occupying the position of AG is”.

Asked if there were any legal remedies if a police commissioner refused to do his duty, another criminal lawyer said the police could be challenged.

“If the commissioner does not want to act, he can be challenged in court.

“The court may then force the commissioner to act.”

Commissioner Cutajar has remained silent over the whole affair involving the highest echelons of the Labour government. Asked to explain why he had not taken any action in the past year since learning of the allegations, Mr Cutajar – the fifth police commissioner in four years – did not reply.

His office said only: “Since a magisterial inquiry is under way, it would not be prudent to comment.”

ivan.camilleri@timesofmalta.com