Malta Enterprise official testifies against Adrian Hillman

The compilation of evidence against Adrian Hillman continued Tuesday with Malta Enterprise official Joseph Zammit testifying on the Progress Press cash grant. 

Zammit testified on the investment application filed by Progress Press to Malta Enterprise. He explained that Malta Enterprise offers several schemes to incentivise business investment. 

Oftentimes, this investment aid takes the form of a cash grant or tax credit to help fund a fixed-asset investment. The company must present invoices to Malta Enterprise before receiving the aid.

In July 2013, Malta Enterprise received an investment proposal from Progress Press. The company wanted to purchase three printing machines, with the entire investment valued at around €5.5 million.

The proposal was signed by Adrian Hillman and Michel Rizzo. 

The recommend cash grant initially amounted to €1.9 million. In the first letter of intent, Malta Enterprise offered a cash grant and interest rate subsidy to help finance the investment. However, the company eventually opted against the interest rate subsidy as it was not going to take out a loan for the investment.

To verify the investment, engineers went on-site to make sure that the relevant machinery was purchased and installed. Malta Enterprise also confirmed with Kasco Limited that the payments went through to it, as Progress Press purchased the equipment from Kasco.

The bulk of the cash grant payments were distributed between 2014 and 2015. However, the final payment was issued in 2019.
The final value of all payments totalled €1.5 million.

Hillman faces charges of money laundering, conspiracy to commit a crime, defrauding Progress Press, making fraudulent gain, making a false declaration to a public authority and accepting bribes as a managing director of Allied Newspapers and Chairman of Progress Press.

Magistrate Donatella Frendo Dimech is presiding over the case. Mark Refalo, Stefano Filletti and Nicole Galea appeared as defence counsel.

Inspector Joseph Xerri is prosecuting, aided by lawyers Antoine Agius Bonnici, Andrea Zammit and Sean Xerri DeCaro from the Attorney General's office.