Keith Schembri, a former chief of staff at the OPM, along with ten other defendants, has been charged with money-laundering, corruption and fraud.
Vincent Buhagiar, another former director of Allied Newspapers, was granted bail. However for the rest bail was denied and they were taken to the Corradino Correctional Facility.
Schembri was charged together with his father Alfio Schembri, a director of several of the Kasco companies, and business partner Malcolm Scerri and financial controller Robert Zammit.
Facing money laundering charges were former Nexia BT partners Brian Tonna, Karl Cini, Manuel Castagna as well as their financial controller Katrin Bondin Carter.
The owners of Zenith Finance’s, Matthew Pace and Lorraine Falzon were charged with money laundering. Zenith was formerly MFSP Financial.
All the defendants pleaded not guilty to the charges which according to police date from 2010 when the Nationalist Party was in government.
It is alleged that Schembri paid €650,000 to secure a multi-million euro contract to supply equipment to Allied Newspapers. Adrian Hillman, the managing director, is alleged to have received part of that payment.
Hillman was not charged as he did not appear in court. It is thought he is presently living in the UK but is expected to be brought back to Malta to be charged.
