In 2012 | Whistleblowing in the wind – the Rita Schembri case

The unexpected cast of characters that came through the doors of the Dalligate casting office offered a new insight into the careers of high-profile civil servants and their business connections.

It was the OLAF investigation into an alleged €60 million bribe that plunged one of the anti-fraud unit's Supervisory Committee members into the limelight. Rita Schembri happened to be the head of the OPM's internal audit and investigation unit, a sensitive unit entrusted with internal government audits, which also carried out part of the Dalligate investigation by OLAF.

No sooner was this made public that a whistleblower, veteran auditor and disability rights campaigner Philip Rizzo, came forward with disclosures that showed Schembri was conducting undeclared private business from her government office.

"I was intrigued to read that ex-EU Commissioner John Dalli had been considered guilty of conflict of interest by Europe's anti-fraud office, OLAF, on the basis of 'unambiguous circumstantial evidence'," Rizzo - who is now reading for a law degree - said.

Correspondence first published MaltaToday showed that Rita Schembri was acting as a business advisor on a three-year business deal that was attempting to buy out one of the partners in the Casinò di Venezia, in Birgu.

The correspondence also reveals a link between Schembri and lawyer Pio Valletta, a non-executive director of Gap Developments plc, the developers of the Fort Cambridge complex in Tigné owned by George Muscat and tuna-ranching magnate Charles Azzopardi.

Back in March 2012, Rizzo was asked to join a business initiative by Far East Entertainment Group plc's chairman Colin Perkins, to acquire a 60% stake in the Casinò di Venezia.

Rizzo held a 70-minute meeting with Schembri on the FEE bid for the Casino di Venezia in March, but following the Dalli resignation and having learnt of the IAID's assistance in the 'snus' investigation, realised he had stumbled on a potential breach of ethics.

"I could not possibly sit passively to evidence such a high-profile unfair application of contrasting weights and measures, and I eventually decided that, despite certain unwelcome attention that would ensue on myself and my already-challenged family, I had stumbled upon an obligation to perform a civic duty."

The matter is now the subject of an inquiry by the Auditor General, although the issue could still be handed over to the Public Service Commission if it transpires that Schembri's actions were in breach of the estacode's code of ethics.

Apart from using the IAID offices for a private business affair, Schembri's relations with the FEE Group and their interest in the Birgu casino did not have the official approval of principal permanent secretary Godwin Grima. Both instances could suggest a serious breach of the estacode's code of ethics: using official IAID facilities for private purposes; and failing to declare a possible financial or other interest in FEE's casino bid.

More need for whistleblower protection

The Whistleblower's Act was among the main electoral promises made by Prime Minister Lawrence Gonzi before the last election. Gonzi himself is on record describing this as an "important piece of legislation" which would be a "priority for his government".

Evidently, the definition of 'priority' must have changed in the meantime. This is clearly not the sort of behaviour one would expect from a government committed to transparency and accountability, and which is committed to protecting the whistleblower.

Government's reticence on the Rita Schembri revelations stood in sharp contrast with the way other civil servants (at least, those who are not close to the establishment) have been treated when caught up in other, often much more trivial 'conflicts of interest'.

One example that springs to mind is that of Wenzu Mintoff, who found that his position as editor of a party-owned newspaper fell foul of the same ethics code, which also prohibits civil servants from holding 'political positions'. Objections were raised on that occasion; one therefore must question why no such objections have been raised when the ethical breach of the same code happens to be so much more serious.

Admittedly there is no direct link between the two cases, but it will surely not have escaped notice that the Rita Schembri at the heart of the whistleblower's claims, was also a member of the board that had investigated (among other cases) the allegations against former EU Commissioner John Dalli, who was made to resign last month over allegations of trading in influence.

While Gonzi's reluctance to respond to these serious allegations may be understandable from a purely political viewpoint, he nonetheless remains a prime minister elected on the specific promise to deliver a Whistleblower's Act, and to adopt a zero tolerance approach to corruption.