Malta's Central Bank Governor Faces Fraud and Misappropriation of Funds Charges

Edward Scicluna, the Governor of the Central Bank of Malta, may be wishing for a larger money printer or a better lawyer, as he finds himself in a precarious legal situation. Scicluna, along with Malta's Deputy Prime Minister Chris Fearne, has been charged with fraud and misappropriation of funds, according to court documents cited by Reuters. This comes as part of a broader crackdown on governmental corruption, with former Prime Minister Joseph Muscat and other officials facing more serious corruption charges related to a hospital privatization scandal from 2015.

Charges Follow a Four-Year Investigation

The charges are the result of a four-year investigation initiated by the opposition Nationalist Party. The investigation centered around a deal that transferred the management of three state hospitals to an unknown group with no prior experience in the healthcare sector. The deal, valued conservatively at 4 billion euros ($4.23 billion), was nullified by Malta's highest court in February after it discovered fraud.

Scicluna and Fearne's Roles in the Deal

At the time of the deal, Scicluna was serving as finance minister and Fearne was a junior health minister. Scicluna, who is a member of the European Central Bank's Governing Council, has not publicly commented on the charges, though he has previously denied any wrongdoing. Fearne, on the other hand, has outright rejected the charges, expressing confidence in his innocence.

Additional Charges for Former Prime Minister and Officials

Former Prime Minister Joseph Muscat, his chief of staff Keith Schembri, and former minister Konrad Mizzi are facing charges of money laundering, corruption, bribery, trading in influence, and establishing a criminal association. All three men have denied these allegations. Muscat resigned in January 2020 following media revelations about his close relationship with businessman Yorgen Fenech, who is currently on trial for complicity in the 2017 car bomb murder of journalist Daphne Caruana Galizia. However, Muscat has not been implicated in the murder investigation.

Prime Minister Robert Abela's Reaction

Prime Minister Robert Abela has criticized the manner in which the investigation was conducted and has defended Fearne, asserting his integrity and stating that he will remain in office. However, Abela has not confirmed whether he will proceed with his previously announced plans to nominate Fearne as Malta’s next European Commissioner next month. No date has been announced for the formal court arraignments when the accused will be asked to file a plea.

What's Your Take?

This story certainly gives us a lot to think about. What are your thoughts on these charges and the broader issue of corruption within government? Do you think the accused will be found guilty? Share this article with your friends and let's get a conversation started. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.