Allied Newspapers denies claims it received money from Keith Schembri

Allied Newspapers Limited has denied receiving any sum of money from former OPM chief of staff Keith Schembri or any of his companies.

In a statement on Monday, the company also denied it ever held an offshore account in the British Virgin Islands.

“If, however, money was in fact passed on by Schembri to two of the Group’s former managing directors as is being reported, then this was all done behind the back of the Group and its board of directors,” the company said.

On Saturday, Schembri was charged with 10 other people on various charges of money laundering, fraud, forgery and corruption. One of the accused was former Allied Newspapers managing director Vincent Buhagiar, who was the only one given bail.

Newspaper Illum reported yesterday that police had been ordered by a magistrate to investigate Allied Newspapers and Progress Press directors over fraud, which amounts to around €750,000. The case revolves around a magisterial inquiry into allegations that Schembri passed on thousands to former Allied Newspapers managing director Adrian Hillman during the time when the newspaper company had bought a new printing press from Schembri's company.

Illum reported that when the Allied Group bought its printing press it also received €1.7 million in investment aid from Malta Enterprise. The alleged €750,000 fraud stemmed from the investment aid.   

In its statement on Monday, the company said that with regards to the group’s applications for investment aid it had no knowledge of any irregularities in all applications, and subsequent contracts were always vetted and confirmed as being granted in line with the eligibility for such aid.

“On a final note, the Group reiterates that it was shocked by Saturday’s revelations and, as the injured party in all of these unfortunate events, it is very disappointed by the outcome and looks forward to the course of justice,” the company said.

The Allied Group said it would continue to co-operate fully with the police investigations regarding the Schembri-Hillman case, as it did during the Magisterial Inquiry conducted by Magistrate Josette Demicoli.