Yorgen Fenech’s bail shocks Malta, ruffles feathers in government

A judge’s decision to grant Yorgen Fenech bail has angered ministers who feel it was unwarranted at such a late stage in the criminal proceedings. 

Fenech is awaiting trial over accusations that he masterminded the 2017 murder of Daphne Caruana Galizia. He denies the charges and has been in preventive detention since his arrest in late 2019. 

The ruling by Judge Edwina Grima on Friday created nationwide shock not least within Cabinet with ministers fearing backlash if Fenech breaches his bail conditions. 

“If anything happens, who would people blame? It’s obvious that they will blame the government and it’s unfair,” a senior minister, who spoke on condition of anonymity, told MaltaToday. 

The sentiment was reflected by other Cabinet members who spoke to this newspaper. “The court has been repeatedly denying him bail but now at this stage of proceedings the judge felt the guarantees provided by Yorgen Fenech were strong enough. It’s incredible,” another minister said. 

Fenech’s case has deep political ramifications not least because he is accused of murdering a journalist, who was on the cusp of uncovering a web of corruption involving people in power and businesspersons involved in the Electrogas power station deal. Fenech is a shareholder in Electrogas and acted as the consortium’s frontman. His Dubai company 17 Black had been listed as a target client of the Panama companies held by former OPM chief of staff Keith Schembri and then energy minister Konrad Mizzi. 

Proceedings waiting for court expert 

Fenech does not yet have a date for his trial as criminal proceedings remain stuck in legal limbo despite the prosecution having closed its case. Sources close to proceedings said the court is waiting for a court-appointed expert, Martin Bajjada, to conclude his job of removing any reference to sources from the information extracted from Daphne Caruana Galizia’s Cloud data. Last November, Bajjada said he could only print 8,000 pages a day amid impending holiday plans. 

Reacting to the bail decree, Daphne’s son, Matthew Caruana Galizia, blamed the government for failing to fix the system. 

“The blame for killers being released on bail without any trial date in sight lies with the prime minister and the minister of justice. They had five years to fix the system and did nothing. Failure after failure by the courts, it’s become increasingly clear whose side they’re on. The side of criminals and not regular people,” Caruana Galizia wrote on social media. 

In her ruling, the judge noted that the length of time Fenech has been held in preventive custody could no longer be ignored despite the persistence of previous misgivings over bail. 

Fenech’s previous bail applications have always been turned down because the court agreed with the prosecution that he constituted a flight risk and out of fear that he could tamper with evidence. But there is also a legal limit that a person can be kept in custody without going on trial and that limit was fast approaching. 

Nonetheless, in her ruling on Friday, Grima said the guarantees offered by the accused were “very strong” when compared to the serious nature of the crime he is charged with. 

Fenech’s bail was secured against a deposit of €80,000 and a personal guarantee of €120,000. He also provided the court with a fixed address in Swieqi where he will be residing on his own. 

Aunty’s shareholding guarantee 

Fenech’s adherence to bail conditions was also secured against a guarantee made by his aunty, Moira Fenech, who put up her 15.46% shareholding in Tumas Group Company as collateral. The shareholding would be forfeited to the government if Yorgen Fenech breaches bail conditions. 

Company filings show that Moira Fenech has a direct shareholding of 13.4% in Tumas Group and a further indirect shareholding of 2.1% through shares held in TGI Ltd. 

Although the court decree does not put a value to Moira Fenech’s shareholding, the latest company documents from 2022 show that Tumas Group Company has a net asset value of €339 million. Moira Fenech’s shareholding at 15.46% is thus worth at least €52 million. 

According to the court decree, Moira Fenech has also inherited an equivalent shareholding from her sister who passed away, which would double the value of her holdings. 

Financial analysts have told MaltaToday the value of Moira Fenech’s shareholding is “prudent” since it does not take into account the company’s performances in 2023 and 2024. It also does not include the revaluation of assets that would have appreciated since 2022 and excludes undistributed profits from ventures where the Tumas Group does not have a controlling stake such as Valletta Gateway Terminals, a port operator in the Grand Harbour. 

“The real value of Moira Fenech’s shareholding today is probably worth double what it is if one takes into consideration assets held in companies where the company is a minority shareholder and the fact that property would have appreciated in value over the past two years,” an analyst told MaltaToday. 

Legal sources have described the bail conditions imposed on Fenech as the most onerous they have ever seen in terms of value. “The shareholding runs into millions of euros, something I have never come across in my legal career,” a lawyer with vast experience in the criminal field said. 

Yorgen Fenech’s bail conditions 

Apart from the financial guarantees and deposit, the judge imposed several conditions on Yorgen Fenech. His passport and identity documents are withheld by the court and is prevented from boarding any boat, ship, and aircraft. Fenech cannot be within 50m of the coast or the perimeter of the airport and has to sign the bail book daily at the St Julian’s police station between noon and 4:00pm. 

The court also imposed a curfew on Fenech, who cannot exit the residence indicated by him between 5:00pm and 11:00am. The court also ordered the Police Commissioner to provide a 24-hour fixed-point surveillance outside the residence and Fenech will have a p 

Crucially, the judge prohibited Fenech from approaching or trying to communicate in any way, even through third parties, with any of the prosecution witnesses, specifically, pardoned middleman Melvin Theuma and former OPM chief of staff Keith Schembri. 

Fenech is also barred from communicating with the relatives of Daphne Caruana Galizia with the judge issuing a protection order in their favour. 

Fenech was not released on bail on Friday because the administrative work needed to secure Moira Fenech’s shares in favour of the government still had to be completed. The process may take several days and it is only after this is completed that Yorgen Fenech can be released from the Corradino Correctional Facility.