OLAF supervisory member resigns, new doubts over handling of investigation

John Dalli's press conference at the Residence Palace in Brussels this afternoon was a "hard sell to the press corps" according to journalists who put some tough questions to the former commissioner.

The press conference coincided with a new development, EUobserver.com reported today that the chair (until two days ago) of OLAF's advisory board had stepped down over the scandal surrounding Dalli, according to Germany's Frankfurter Allgemeine Zeitung. "Christiaan Timmermans resigned because he failed to properly inform the board about the details of Dalli's alleged misconduct before handing the information to the Maltese authorities," FAZ reported.

OLAF's Supervisory Committee was established to reinforce and guarantee OLAF's independence by regularly monitoring the implementation of OLAF's investigative function. Among its five-man board is Rita Schembri, the director-general of the Internal Audit and Investigations Department inside the Office of the Prime Minister.

The IAID is the interlocutor of OLAF in Malta and is the Anti-Fraud Co-ordinating Service (AFCOS) for Malta in joint investigations with OLAF, which was also involved in the OLAF investigations into John Dalli as early as 5 July 2012.

The reason for the resignation, FAZ reports, is due to the fact that 'incriminating documents' were passed on to Afcos by OLAF without first, as required, being vetted by the supervisory panel.

OLAF declared on Sunday that it passed on the documents only after the supervisory committee was informed and given access to the documents. But FAZ reports that only a fraction, 10 of 40 pages, of the documents were handed over.

On this basis, the supervisory committee appears not to have been in a legally binding position to confirm in advance the transfer of records as being in full respect of Dalli's rights in terms of the investigation.

FAZ also reports that the European People's Party MEP Ingeborg Grässle, who has been conducting a parliamentary review of OLAF, also raised her own doubts as to the impartiality of Rita Schembri, the IAID director who sits on the supervisory board. This observation could not be confirmed in other corresponding reports.

Dalli attempted to convince a jam-packed hall of journalists that he was forced to resign by EC president José Barroso - over an OLAF investigation which found circumstantial evidence that he was aware that his canvasser had attempted to solicit a bribe in a bid to influence tobacco laws - but then admitted that he had told Barroso he would resign, after consulting his family and lawyer.

Dalli claims his resignation is not effective because Barroso has not given him a written justification for his resignation, although the EC supplied him with a letter of resignation. But the EC president today told the former commissioner that his oral resignation was effective and witnessed by the director of legal services and his cabinet chief.

Dalli insisted again with the press today that he did not "formally" resign and that he would start legal action against the EC.

A story by the Wall Street Journal today, which claimed there was a 10 February meeting between him, a Maltese lawyer employed as a lobbyist by Swedish Match, and canvasser Silvio Zammit, was also the source of some stiff questioning.

According to the WSJ and also Patrik Hildingsson, the vice-president of Swedish Match, Zammit was said to have asked for the €60 million bribe from the lawyer after an inconclusive meeting in which Dalli said reversing an EU ban on snus tobacco was impossible and "political suicide".

"Dalli maintained that he did not know the lawyer was a lobbyist as she was only asking questions. 'She didn't know much, asking for very basic information' [without] arguing a position or trying to persuade," one of the journalists present reported.

Dalli reiterated earlier statements that he had been forced out of the Commission, which he said was the subject of "an onslaught of lobbying".

Dalli also said he had sent a legal letter back in August to Silvio Zammit, the Sliema restaurateur who had previously brokered two meetings for snus lobbyists, not to use his name in his dealings.

The Parliament Magazine said Dalli faced series of tough questions from journalists. He said his 60-minute encounter with Barroso became a stand-off between the two former colleagues.

"It was a case of one of us saying I should resign and me saying that I shouldn't," said Dalli. "That's how it went on for an hour. I asked Barroso for 24 hours to think things through and for to me to seek legal advice which is my right. He refused and gave me 30 minutes to make a decision."

In the end Dalli said Barroso told him that if he did not resign voluntarily he would be "required" to do so. "It isn't a question of me offering my resignation. That did not happen. I was forced to resign," said Dalli. "He said I would have to leave because he had the power to force me to resign."

He said he was having talks with legal advisors with a view to possible litigation against both the commission and OLAF. "I want to clear my name. The decision taken by Barroso is very serious. It will damage my whole future and that of my family. It is not a question whether I get my job back or not. All that I ask is that Barroso rectifies the situation."

Asked about Barroso's possible motivation in seeking his resignation, he said, "I cannot get in the head of someone else but can only think that he thought it would be dangerous for the commission for me to remain in the post."