Keith Schembri released on police bail after 20 hours of interrogation

Keith Schembri has been released on police bail after 20 hours of interrogation linked to a money laundering and kickbacks investigation.

The former chief of staff of prime minister Joseph Muscat is understood to have been disclosure of evidence and is expected to be recalled back for more questioning.

He was released from police custody around 9:30pm on Tuesday.

Earlier, Schembri’s lawyers argued that their client will not cooperate until he is given access to the inquiry which prompted the police investigation.

Schembri was arrested at around 12:30am at his Mellieħa home on Tuesday and spent 20 hours in police custody.

Nexia BT's Brian Tonna and Karl Cini are also believed to have been arrested by the police.

The arrests came after Attorney General Victoria Buttigieg asked the court to impose a freezing order on all Schembri’s assets, including those of his immediate family and companies.

The freezing order also effects Tonna and all business partners linked to him and Schembri. There are 41 individuals and 41 companies impacted by the wide-ranging freezing order.

READ ALSO: Criminal Court issues freezing order on Schembri, Tonna, families and business accounts

The AG’s request came after a magisterial inquiry into allegations that Schembri received €100,000 from Tonna as part of the sale of citizenship to a Russian family was concluded a few weeks ago.

The allegation was made in April 2017 and the inquiry was requested by then Opposition leader Simon Busuttil.