Progress Press: Lawyer throws doubt on court experts’ findings

Criminal proceedings against Adrian Hillman, the former Allied Newspapers managing director accused of money laundering, bribery and fraud, resumed on Thursday morning.

Hillman had pleaded not guilty to a number of charges which centre around the purchase of printing machines by the Allied Group when he was managing director.

The sitting centred around the cross-examination of investigating officer joseph Xerri by defence lawyer Stefano Filletti, where it emerged that Progress Press had not filed any complaint against Hillman.

In fact, an out-of-court settlement between Hillman and the company had been reached after a suit was filed by Hillman regarding his dismissal.

It was also revealed that the purchase of the printing machine by Progress Press from Kasco Technical Services was the result of a tender process, with Kasco’s offer emerging as the cheapest of the three offers by some two million dollars. All three offers regarded similar machines which were essentially market competitors. The purchase had received the approval of the board of Progress Press, amongst others.

The officer said Hillman had declared all amounts paid to him by Kasco Technical Services, with this prompting defence lawyer Filletti to question how Hillman could possibly have declared monies received by way of corruption.

When asked to explain the basis on which court experts deemed the payments to be the result of corruption, the inspector said that he relied on their report - the experts did not give such an explanation.

Filletti further questioned how the tender offer could have possibly been two million dollars cheaper if Kasco were aided in the bid. He argued that the price difference would have been lower so that profits would be maximised.

The defence lawyer made reference to a spreadsheet found by experts containing amounts and initials. This was taken by the experts as proof of corruption. He questioned how the experts arrived at that conclusion when the amounts received did not tally with the amounts on the spreadsheet.

Reference was also made to the conclusions that the corporate structure and offshore companies at hand raised suspicions, with Filletti noting that such structures have been around in Malta for many years and that tax planning is legal after all.

He asked how court expert Jeremy Harbinson concluded that the transactions occurring out of Malta generated tax due in Malta, and whether Harbinson is a tax expert. It was further questioned whether Harbinson had paid tax in Malta for services which he had rendered in the inquiries.

Filletti concluded by referring to the inspector’s statement that expert reports were relied on, questioning what took place in the interim so that charges could be issued after the inquiring magistrate had concluded that there is only a prima facie basis to suggest corruption.

The inspector said that charges were issued after suspects were called and issued their right to silence. At this juncture, it was rebutted that Hillman had only been asked to answer questions when charges had already been drafted against him.

The sitting concluded with lawyer Kathleen Grima raising a procedural point, namely that Progress Press found themselves in a conflictual position inasmuch as they are both parte civile and co-accused with respect to some of the crimes of which Hillman is acused.

Lawyer Sean Xerri De Caro from the Office of the Attorney General appeared for the Prosecution.

Hillman was assisted by defence lawyers Stefano Filletti and Kathleen Grima.