Rita Schembri resigns from OLAF supervisory committee

Permanent secretary Rita Schembri has tendered her resignation from the OLAF supervisory committee, MaltaToday has learnt, as pressure mounted inside the European Parliament on the way the EU's anti-fraud unit is carrying out its investigations.

Schembri, a permanent secretary in the Maltese civil service, headed the OPM's internal audit and investigations department before suspending herself pending an inquiry by the Auditor General into an alleged breach of ethics, revealed by MaltaToday.

Schembri, 46, was revealed to have conducted private business affairs on behalf of a gaming company from her own government offices without declaring her interest to the head of the civil service.

The Auditor General's inquiry is still ongoing.

Schembri's IAID was also involved in the investigation into former commissioner John Dalli, who resigned in October 2012 after OLAF claimed there was circumstantial evidence that he was aware of a bribe attempt to reverse a ban on the sale of Swedish snus. As IAID head, Schembri headed the anti-fraud coordinating unit that liaised with OLAF in Brussels.

Additionally, Schembri was propelled into the news after it was revealed she had been declared by a court of having acted fraudulently in the regard of landlord Joe Borg, whose restaurant she had illegally sub-let to a third party, pocketing €54,000 in key money that had to be shared with Borg.

The NAO inquiry into Schembri's alleged breach of the public service's code of ethics is also still ongoing, 13 weeks since the investigation was launched.

Schembri temporarily stepped down from her position as head of the IAID on 23 December 2012, pending an inquiry by the Auditor General into the allegations.

Among those interviewed by Auditor General Anthony Mifsud was whistleblower Philip Rizzo, an independent auditor and disability rights campaigner who revealed that Schembri was conducting private business from her government offices.

Rizzo, who described himself as a "witness to Schembri's lack of professional ethics in the public sphere", produced email correspondence showing that Schembri carried out business on behalf of gaming firm Far East Entertainment plc, to purchase a 60% stake in the Casinò di Venezia, of Birgu.

Rizzo himself had been engaged by FEE to meet Schembri at the IAID offices, wherein it turned out that the permanent secretary was conducting private business for FEE in the government office, in breach of the public service management 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.

Schembri has denied having carried out any business advisory services to private firms.