Identity Malta employee noted ‘excessive familiarity’ with customers

An Identity Malta employee has testified to having changed procedures at the government authority due to what he described as excessive familiarity between certain customers and employees. 

The compilation of evidence against auditor Joe Sammut continued before Magistrate Doreen Clarke this morning with Ryan Spagnol, a senior manager at Identity Malta, tendering his evidence.

Sammut, 58, also a former Labour Party treasurer, is accused of using false documents to assist his Libyan clients to set up Maltese companies with the aim of obtaining residency permits. Sammut also faces charges of misappropriation and not carrying out the due diligence checks required by law.

The court had been told in previous sittings that in the majority of cases, the companies were mere shells and did not carry out any trading.

Spagnol, who started working as a senior manager at Identity Malta this May, said that Sammut’s staff had received better treatment than others. “I found it strange that some clients, including Sammut’s employees, would come to our offices and always ask to speak to the same people. There was already the impression that Mr Sammut’s people, and others, were privileged.”

These employees were later transferred to back office roles and the system had been changed, requiring all applicants to wait their turn in line, the witness said.

Spagnol added that at the time he took over, nearly all of the applications received from Sammut’s office were being refused, “either because we had negative feedback from the ETC or because the addresses they provided were dubious.”

As a result of the high refusal rate, the department was under clear instructions to exercise caution with regards the addresses provided by Sammut’s clients, he said.

Cross-examined by Sammut’s defence lawyer Michael Sciriha, the witness confirmed the high refusal rate, in spite of the excessively cosy relationship between Identity Malta staff and Sammut’s employees.

This was down to the negative feedback the department was receiving from other authorities, explained Spagnol.

MFSA official Joseph Caruana also testified, explaining the documents required in order to register a Maltese company.  These documents included a declaration of assets, which he said could be either in cash or immovable assets, drafted by an auditor.

Any auditor can draft such a report, which would then be taken in good faith by the MFSA, the witness said.

Inspectors Jonathan Ferris and Lara Butters are prosecuting. Lawyers Michael Sciriha and Simon Micallef Stafrace are appearing for Sammut.