Anthony Debono’s defence claims ‘private’ works fell within CMU’s remit

Compilation of evidence against Anthony Debono continues in Gozo courts

The defence counsel for Anthony Debono, 59, tore into the evidence presented by the prosecution, saying the allegedly ‘private’ works that Debono commissioned using public funds under his authority as head of the Gozo ministry’s construction and maintenance unit (CMU), were in fact public works.

In the third sitting of the compilation of evidence against Debono, husband of former Gozo minister Giovanna Debono, defence lawyer Joe Giglio listed all the works presented by the prosecution, submitting that each of them were public works, and not private commissions carried out abusively using public funds.

Debono is accused of having misappropriated over €5,000 in public funds by virtue of his employment; of having profited to the tune of over €5,000 from public monies and private contractors; used his official capacity as a civil servant to his own private advantage, in dereliction of his public duty; rendered himself an accomplice in the falsification of public documents for the issuing of payments and goods; and abused of his public role and of public acts entrusted to him.

Giglio challenged prosecuting inspector Ian Abdilla over the outright majority of some 22 works that whistleblower Joseph Cauchi alleges were privately-commissioned works carried out on the ministerial budget.

Cauchi, a contractor who now enjoys protection under the Whistleblower Act, is to testify in the compilation of evidence against Debono next week.

Cauchi has told police investigators that Debono would pay him for private works under a system of false invoicing so that private works could be financed by the ministerial budget.

But in showing that each of the works were in some way or another, repairs or maintenance of public amenities or farm access roads, Giglio argued that this work fell squarely within the CMU’s remit.

At times the prosecution was unable to answer whether works they insisted were privately commissioned, could have been “spillovers” from public works: in one case, a farm access road that finished “just 10 centimetres” beyond a private gate, Giglio said.

Giglio ran through each individual contract listed as evidence, to ask Inspector Ian Abdilla on what ground had the police surmised that works such as those for Gharb FC’s football ground, had been considered “privately commissioned”.

The line of questioning turned out to be uncomfortable for Abdilla, who as Giglio was about to repeat all throughout the sitting, had to answer how public works requested by a local council, voluntary organisations, for public safety reasons, or for farm access roads could be considered illicit.

Giglio said that it was well within the CMU’s remit, as he quoted from the Gozo ministry’s annual report, that it could carry out repairs and maintenance on government-owned properties.

Abdilla tried rebutting Cauchi’s line of questioning, saying that many works were not carried out according to public tender.

But here Giglio would point out that Debono, a civil servant, was not being called to answer to the Public Service Commission or the Internal Audit and Investigation Department. “These are financial breaches you mention here… not the charges of fraud you have accused my client of.”

Giglio cruised through almost each of the individual works, pointing out why they could not be considered ‘private’ works.

He said a basement excavated for Brookies restaurant, allegedly a wine cellar according to Abdilla, had been necessary for works related to the flooding in the area.

In one case of a surfaced countryside lane, Insp. Abdilla insisted that the road passing through the country lead directly to a private residence and over private property. But Giglio said that the CMU’s role was to provide farm access roads. Another job submitted as evidence was the widening of a bridge at Lunzjata valley, which was government-owned property. The works were allegedly done at the behest of a private person, who has since then passed away.

Another private job in a residence was said to have been part of road alignment works.

A Fontana road surfaced by Cauchi allegedly on instruction by Debono, was claimed by Giglio to have been created to divert rainfall away from farmers’ fields. Abdilla said that there was no documentation substantiating Giglio’s claims, and that the road did not appear to serve as a diversion for flooding.

In another case, Giglio insisted that works by the CMU connecting a house’s sewage to the government mains was a public works job, but Abdilla countered that private residences could not expect the CMU to pay for their drainage pipes to be connected to the public system

“I never accused Debono of having carried out private works,” Insp. Abdilla said. “I presented a conclusive list of accusations by Cauchi, as a whistleblower, which I investigated, and which I have presented in its entirety to the court. I never specifically referred to any works being carried out either publicly or privately.”

Giglio also said that works Cauchi carried out for €13,000, allegedly at the behest of Anthony Debono for quarry owner Sammy Camilleri, had been settled by Camilleri himself.

Various were the examples in which Giglio pushed the line that the works Cauchi had carried out for Debono, were works the CMU was officially charged with doing: the repair of a dangerous wall bounding on a private piece of land, a surfaced parking space for a private residence which Giglio said was actually a public road; access roads to the San Dimitri fireworks factory; and a concrete platform for a feast statue, requested by the Gharb festa committee.

 “Was this wrongful use of public funds?” Giglio asked. “Was Debono allowed, or not, to finance maintenance works for the football ground on request of Gharb mayor David Apap?” To this, Abdilla said that while Debono was authorized, these works were to the detriment of Cauchi.

“Debono did not find any time since 2006 to issue an invoice… if anything that is a breach of financial regulations,” Giglio said.

Giglio also asked Abdilla in his cross examination, whether he had unquestionably considered Cauchi to have been set for whistleblowers’ protection considering that the allegations first made the news on 8 March, and then were followed by Cauchi seeking protection under the law on 1 April.

Inspector Abdilla said the police examined the evidence seized from the Gozo ministry and that police spoke to ministry officials, but not to contractor Joe Cauchi,  accused Anthony Debono, or the beneficiaries connected to the 22 sites in which the works were carried out.

Abdilla said they only interrogated the beneficiaries after hearing what Cauchi told them.

16:32 Counter-examination suspended. Court is adjourned. Matthew Vella

16:29 Giglio tells the court that he has shown that for each of the 22 individual works submitted as evidence by the prosecution, all fell within the remit of the CMU. Matthew Vella

16:24 Another example from the evidence list presented by the prosecution, again deals with flooding works that the CMU was entrusted with – Giglio says. Matthew Vella

16:21 Giglio says that works allegedly carried out in a basement of a the Brookies restaurant were excavation works connected to public works to avoid flooding in the area. Matthew Vella

16:16 In another example dealing this time with a countryside lane, Insp. Abdilla insists that a road passing through the country leads directly to a private residence and over private property. But Giglio says that the CMU’s role is to provide farm access roads. Matthew Vella

16:10 Another work submitted as evidence, was the widening of a bridge at Lunzjata valley, which was government-owned property. The works were allegedly done at the behest of a private person, who has since then passed away. Matthew Vella

16:07 Giglio presents another of the works listed as evidence, as having been a road alignment project. Abdilla confirms. Matthew Vella

16:04 Another road in Fontana, surfaced by Cauchi allegedly on instruction by Debono, is claimed by Giglio to divert rainfall away from farmers’ fields. Abdilla says that there was no documentation substantiating Giglio’s claims, and that the road does not appear to serve as a diversion for flooding. Giglio points out that Abdilla did not speak to farmers in the area to confirm this. Matthew Vella

15:58 Abdilla here replies: “You cannot expect a private resident to have the CMU pay for the works connecting a private residence’s drainage pipes to the public sewage system.” Matthew Vella

15:57 Now listing the eleventh property, Giglio says that works on a private residence were in fact works repairing old sewage systems. “Do you agree that the CMU’s remit included the proper function of sewage connections?” Matthew Vella

15:55 “I never accused Debono of having carried out private works,” Insp. Abdilla says. “I presented a conclusive list of accusations by Cauchi, as a whistleblower, which I investigated, and which I have presented in its entirety to the court. I never specifically referred to any works being carried out either publicly or privately.” Matthew Vella

15:51 Giglio again quotes from the Gozo ministry’s annual report, to say that the CMU’s remit is indeed the repair and maintenance of farm access roads in the countryside. Matthew Vella

15:51 Giglio lists another road, which Abdilla says is a countryside lane of which part of it is closed behind a gate. But Giglio says that the portion of private land that was surfaced could perhaps mount to just 10cm of concrete. Matthew Vella

15:48 In other works carried out for Sammy Camilleri, the quarry owner told police that these works were contracted out to Joe Cauchi directly; works that the CMU carried out in the countryside, such as country lanes and passages, were also part of the CMU’s remit, Giglio says. Matthew Vella

15:46 Giglio says that whistleblower Joe Cauchi said he had carried out works at the quarry of Sammy Camilleri, through the CMU, but that Camilleri himself said that he had settled all pending payments for the works with Debono. Matthew Vella

15:39 In another example this time dealing with the repair of a dangerous wall, bounding on a private piece of land, the prosecution is unable to confirm whether the repair of dangerous structures is indeed part of the CMU’s remit. Matthew Vella

15:35 In another example, Giglio insists that the laying of concrete for a parking space for a private residence was actually a public road. Abdilla is unable to confirm whether the road was a private access. Matthew Vella

15:29 While Giglio is insisting that these works are well within the remit of the CMU’s operations, and that therefore Debono was carrying out his job, Abdilla says that the payment of the works were carried out irregularly. Matthew Vella

15:27 Abdilla says that Debono could never issue invoices for such works as the road leading to the San Dimitri fireworks factory, so works carried out from 2006 onwards were paid piecemeal to Joe Cauchi through a system of false invoicing. “Although I agree that certain roads were public, the way payments were issued for these works were illicit.” Matthew Vella

15:23 Giglio tells the court that Debono is not being charged before the Public Service Commission or the Internal Audit and Investigations Department for breaching financial regulations – but for breach of abuse – underlining that the prosecution’s charges were so far not holding up against the list of works identified by whistleblower Joe Cauchi. Matthew Vella

15:20 Giglio is putting pressure on the prosecution’s listing of certain works the CMU carried out for social organisations. He quotes from the Gozo ministry’s annual report that describes the CMU’s remit as that of carrying out various works, amongst others for voluntary organisations – to his Abdilla says that he did not consult this document. Matthew Vella

15:17 Abdilla says the works were carried out without MEPA approval… and here Giglio reminds Abdilla that Debono is not being accused of breaching planning rules. Matthew Vella

15:17 Giglio now lists a platform for a feast statue, commissioned by Gharb mayor David Apap on request of a local festa committee. “Was this wrongful use of public funds?” Matthew Vella

15:04 Giglio asks again: “Was Debono allowed, or not, to finance maintenance works for the football ground on request of Gharb mayor David Apap?” To this, Abdilla says that while Debono was authorized, these works were to the detriment of Cauchi.
“Debono did not find any time since 2006 to issue an invoice… if anything that is a breach of financial regulations,” Giglio says. Matthew Vella

15:02 Giglio attacks the prosecution’s claim that the works on the Gharb football ground were illicit, saying that as far the facts show, the sole grievance here is that no payment was ever issued for the works. Matthew Vella

14:58 “This is government property: what has the accused done wrong in authorising works for the Gharb football ground by the CMU.” Matthew Vella

14:56 Giglio is running through a ledger of works carried out by the Gozo ministry’s CMU, listing works on various football grounds from 1996, to drive the point that no wrongful use of public funds could be contemplated for the repair or maintenance of football grounds – since these are government properties. Matthew Vella

14:53 Abdilla says Cauchi could not invoice the Gozo ministry or the council for these works, since they were not issued regularly by the CMU. Matthew Vella

14:52 Giglio again asks Abdilla why the football ground, a government property, was included in the list of alleged private works Debono commissioned for Cauchi to carry out. Abdilla is finding it hard to give Giglio a conclusive answer. “This work was not covered by any form of public tender, nor work obtained by Cauchi by tender… there are some irregularities in the work carried out.” Matthew Vella

14:48 Insp. Abdilla says Gharb is being considered as one of the works that were provided as “private works”, but Giglio is contesting the prosecution’s insistence since the football ground is government property. Matthew Vella

14:46 Giglio is running through each individual contract Cauchi carried out, allegedly on Debono’s instruction, asking Insp. Attard whether – or how – were certain contracts considered to be “private works”. He starts off with works for Gharb FC’s football ground at Triq Tumas Cassar. “Is the prosecution alleging that my client has made wrongful use of public funds for the Gharb football club – yes or no?” Matthew Vella

14:41 Insp. Abdilla says police did not rest on the allegations reported in the media and only started investigations soon after Joe Cauchi was granted whistleblower protection on 1 April, after talks with the Attorney General. Matthew Vella

14:39 Abdilla is asked by Giglio whether whistleblower Joe Cauchi was earmarked for protection from the State, and denies that police were instructed to “hold back” from interrogating Cauchi as a suspect or whistleblower. Abdilla said it was a collective decision to “step back” from interrogating Cauchi between 9 March to 1 April. Matthew Vella

14:34 Insp. Abdilla takes witness stand for his counter-examination by defence lawyer Joe Giglio. Matthew Vella

14:31 Insp. Stivala stands down from the witness stand. Matthew Vella

14:26 When he was first interrogated by police, Anthony Debono did not avail himself of any legal assistance. He was spoken to six times in his 36-hour detention. He always exercised his right to stay silent, claiming that his family was being instrumentalised for political purposes. He was later given police bail. Matthew Vella

14:21 A selection of works mentioned by Insp. Stivala include requests for maintenance or repairs of drainage systems, which the CMU carried out without any request for payment. Matthew Vella

14:18 Police also spoke to the various beneficiaries of the private construction works. Matthew Vella

14:17 One of the contractors, Pietru Debono, said that if Anthony Debono was not on the construction site where works were being commissioned, Debono would “pass by” to sort out the invoicing for works. Matthew Vella

14:16 Police later carried out a financial analysis of payments issued by the ministry for CMU works, and in a second interview Cauchi once again explained all the works he carried out - mainly in the weeks following up to general elections. Matthew Vella

14:09 Inspector Stivala is exhibiting a list of works carried out by Cauchi, together with photographs of the works he said he carried out on behalf of Anthony Debono. Matthew Vella

14:04 Cauchi listed a number of works he carried out for Debono, amongst them a basement for Brookies restaurant, various countryside lanes and private roads, and also works in residences in Ghasri and Kercem. Matthew Vella

14:03 While also demanding payment from Debono himself, Cauchi managed to get paid €10,000 in cash – but was still left €30,000 out of pocket. Matthew Vella

14:02 Since the works were not covered by tender, Cauchi would wait for Debono to instruct him how to charge particular works using false invoices listing other government jobs. After the 2013 election, he had still not been paid for various works contracted by Debono, and sought payment from minister official Joseph Portelli. Matthew Vella

13:58 The whistleblower, Joe Cauchi, said he started offering services to the CMU since the 1990s; he would issue invoices to Debono, as officer-in-charge at CMU; and he was also the recipient of various direct orders from the CMU. He said various private works he carried out were charged to the CMU. Matthew Vella

13:55 Another contractor, Pietru Debono, said that he formed part of a five-company consortium called Apex, whose financial controller was Joe Cordina, the mayor of Xewkija; he said that any works contracted for the CMU were handled, in terms of payment, by Cordina. Matthew Vella

13:53 Various construction suppliers who the police spoke to denied having carried out private works for Debono or for the CMU. Matthew Vella

13:50 Portelli had even complained to then Gozo minister Giovanna Debono about her husband’s actions in issuing works not approved by him. Matthew Vella

13:48 A ministry official, Joseph Portelli, told the police that Debono had often ordered construction works – as head of the CMU – that he had not approved, even though Portelli was his superior. Matthew Vella

13:47 Cauchi had carried out works on order of Anthony Debono for the CMU right up until the 2013 election. Matthew Vella

13:46 Cauchi complained that he was not paid for works on a government farm, work on order of the director for corporate services, and works on order of the CMU, which was headed by Anthony Debono himself. Matthew Vella

13:45 One of the contractors, Joe Cauchi, who had been left out of pocket following unpaid works, said he sought payment from a ministry official. However the official said he was unauthorized to issue payment, and directed him to seek payment from Debono himself. Matthew Vella

13:43 The Police economic crimes unit and police constables held a preliminary meeting with the Gozo perm sec and other ministry officials, and offices inside the Gozo ministry and the construction maintenance unit, known as the Kejselli, were sealed by police order. Matthew Vella

13:41 Stivala says that it was the Gozo ministry's permanent secretary who asked the police to investigate the reports appearing in MaltaToday which said a whistleblower had been commissioned to carry out construction works for constituents, on the ministerial budget. Matthew Vella

13:40 Inspector Ray Stivala takes the witness stand. Matthew Vella

13:38 Anthony Debono is in court, accompanied by his wife Giovanna Debono, the former Gozo minister. Matthew Vella