Shaukat Ali charged with corruption, money laundering over Vitals fraud involvement

Shaukat Ali Chaudry, his wife Asia Parveen Shaukat, and several companies have pleaded not guilty to criminal charges recommended by the Vitals inquiry.

The 73-year-old Pakistani businessman, who told the court that he worked as a freelance consultant, appeared voluntarily in court on Wednesday, where he was arraigned by summons. He pleaded not guilty to charges of money laundering, trading in influence, misappropriation, promotion and active participation in a criminal organisation and corruption.

He was charged together with Mount Everest General Trading LLC, Mount Everest FZ LLC, STE Health Co, Mount Everest Investments Limited, VGH Europe AG - today Accutor Consulting AG, Mount Everest General Trading FZ LLC, Global Assets Holdings Limited 
None of the companies, which are registered in various jurisdictions, including Dubai and Tunisia, had been successfully notified.

At the start of today's arraignment before magistrate Rachel Montebello, prosecutor Rebekah Spiteri requested an amendment to the charges, together with a separation of proceedings.

The first set of defendants would be today’s case against Ali, Mount Everest FZ LLC, and Global Assets Holdings Ltd.. Ali also represented those companies, she explained.

The second set of charges would be against Mount Everest General Trading LLC, STE Health and VGH Europe AG. No individuals were being charged in the second batch, noted the court.“We are not yet sure who represents those companies,” explained the prosecutor. 

The defence did not object to the request, which was upheld by the court, which noted that the changes did not affect the merits of the charges and were not being opposed by the defence.

The prosecution also requested a number of seizures and freezing orders, the first of which against Shaukat Ali Chaudry was for the sum of €30 million. 

€9 million were requested to be frozen from the assets of VGH Europe AG, €100 million from Mount Everest Investments Limited, €100,000 from STE Health Co, €340,000 from D Global Assets Holdings Limited, €5 million each from Mount Everest FZ LLC and Mount Everest General Trading LLC.

Asked how he wished to plead, the defendant made an open palm gesture and said “I’m not guilty, so I’m pleading not guilty.” Ghaznavi entered not guilty pleas on behalf of the companies.

FCID Inspector Wayne Rodney Borg took the witness stand.

He was assigned to assist Mag Gabriella Vella in the Vitals Steward inquiry. “My role was always to assist her by summoning all the necessary persons who needed to testify in such inquiry.”

MaltaToday had reported that Ali, along with former OPM chief of staff Keith Schembri, were central to the multi-million fraudulent hospitals concession. Investigators believed that Shaukat Ali’s family was rewarded with huge consultancy fees when Steward was to take over Vitals as concessionaires of the hospital – as much as €480,000.

The payments to Shaukat Ali were made two weeks before Steward Healthcare International – the international arm that took over the concession – signed a memorandum of understanding with the government to take over the hospitals concession.

Just yesterday, a magistrate ruled that Shaukat Ali’s son, Shaukat Asad Ali can stand trial, after ruling that there is sufficient evidence to commit him to trial on indictment.

When the case resumed after noon, the court issued a decree upholding the request for a seizing and freezing order on Shaukat Ali Chaudry, Global Assets and Mount Everest and his Parveen.

The court instructed that the orders be communicated to all financial institutions as well as be published in the government gazette.
It upheld the prosecution’s request for a prohibition in respect of public dissemination of any evidence or acts from the proceedings.
Imposed 30k recognizance on each of the defendants to ensure their compliance with its orders.

Wasay Bhatti pleads not guilty

Wasay Attaoul Bhatti, an Indian-born lawyer based in Switzerland, faced arraignment in a separate courtroom.

Representing both himself and two Swiss companies, Accutor AG and Spring Healthcare Services AG, Bhatti is accused of being instrumental in the alleged misuse of these entities as conduits for a political slush fund by the hospital concessionaires.

In court, Bhatti denied all allegations, pleading "not guilty" before Magistrate Leonard Caruana. Prosecutors said Bhatti played a key role in facilitating bribery payments to prominent political figures, including former Prime Minister Joseph Muscat, former Minister Konrad Mizzi, and former OPM Chief of Staff Keith Schembri.

Additionally, Bhatti is alleged to have supported Shaukat Ali and his suspected Vitals frontman, Sri Ram Tumuluri, in trading influence.

Tumuluri remains at large, with prosecutors revealing that attempts to serve him with a court summons have been unsuccessful. In light of the charges, prosecutors have sought a substantial €9 million freezing order on Bhatti's assets, a move contested by his defense team, comprising Shazoo Ghaznavi, Jessica Formosa, Alex Scerri Herrera, and Jeanine Depasquale.