‘Keith Schembri was not up for discussion,’ – Fearne says on meeting with PM after Panama Papers

Deputy Prime Minister Chris Fearne said yesterday that the discussion he had with then Prime Minister Joseph Muscat after the Panama Papers were published focussed on Konrad Mizzi and not Keith Schembri.

The public inquiry into the assassination of journalist Daphne Caruana Galizia resumed yesterday, with Chris Fearne testifying.

During the sitting, Fearne was asked about the Panama Papers. He said that there was a discussion about the Panama Papers in Cabinet. He told the inquiry that the prime minister had met and informed him that Konrad Mizzi was not going to remain deputy leader or minister for health. “On Keith Schembri, the PM had said that he had trust in him and he would decide on his fate. The PM had met ministers individually after Panamagate. The discussion was mostly on Konrad Mizzi. Keith Schembri was not up for discussion,” he told the board.

Fearne said that he was opposed to how the role of Chief of Staff developed over the past 20 years. There was too much of a concentration of power. “I was of the opinion that the role should be scrapped,” he added.

VGH

A large part of the sitting was focussed on the hospitals deal.

Fearne was asked about the Vitals Global Healthcare hospitals concession. “I knew there was going to be a project regarding the hospitals before Vitals were involved,” he said, adding that he was not involved at that stage as a parliamentary secretary. The only thing he had done was attend a presentation by Malta Enterprise at Castille for the Gozo hospital to become a teaching hospital for Barts.

Fearne said that after the adjudication, Vitals were selected as the preferred bidder. “The concession was not signed immediately. In that period I was asked to give a number of KPIs for a part of the concession,” he said.

Fearne explained that when he was a backbencher, between February and March in 2014, he was asked to meet Keith Schembri. “He [Schembri] told me to prepare for changes in Cabinet. He asked me whether I would be interested in the role like [former PN health minister] Louis Deguara, whereby I would be a parliamentary secretary but not be responsible for certain projects in the area. I accepted.”

Fearne said that the choice of the preferred bidder for the hospitals concession was not in his remit. “I only found out about the Memorandum of Understanding recently. There was a PQ about this before the 2017 election... Konrad Mizzi was my minister when I was parliamentary secretary.”

Fearne explained that after the signing of the concession agreement, there was a discussion in the parliamentary group and in parliament. “There was no opposition to it because on paper it looked like a good deal. The opposition voted in favour of it,” he added.

Fearne said that he had not known Ram Tumuluri (of VGH) before the deal, but afterwards had long arguments with him. Fearne told the inquiry that he met Tumuluri and Mark Pawley [from the Oxley Group] in Castille. “On paper, it looked like they were bringing €200 million, the service would be good and there would be medical tourism.”

Fearne was then asked about Steward Health Care, who took over the concession later down the line, and he said that they were a serious organisation. He had gone to visit them with Public Health Superintendent Charmaine Gauci. “I had also visited Harvard Medical School, that were involved in the deal but later pulled out.”

Kitchen cabinet

Judge Michael Mallia asked him about the infamous ‘kitchen cabinet’.

Fearne: “I was not part of it, neither did I know it was there and neither did I have the perception of its existence. The first time I knew about it was when Evarist Bartolo testified about it before this inquiry. He [Bartolo] had never expressed any reservations about it before.”

On Konrad Mizzi’s remit as minister, Fearne said that the reason given by the government was that all the projects were concentrated under the responsibility of one person, and that Konrad Mizzi would deliver. The idea was for there to be continuity. “What I can say is that my decisions are made after discussions are held with ministers or Cabinet. I never had any direction imposed on me.”

Fearne was asked whether the murder of Daphne Caruana Galizia was discussed in Cabinet. “I don’t recall if it was a formal topic in a Cabinet memo but it was definitely being spoken about. The murder was the most shocking event of my political career.”

Fearne said there were major discussions in Cabinet on the resignation of the prime minister and ministers. “Resignations did take place,” he added.

On his relationship with Keith Schembri, Fearne said: “My relationship with Keith Schembri was frosty after I had said that I was under the impression that he [Schembri] had tried to harm my election chances.”

Board member Said Pullicino said that good people are handling investigations but said that at a certain level there is a net which leads people to leave or be reassigned.

Fearne: “I am on record saying that the FIAU, once it has intel on a person, should have the power to act of its own accord.”

Therese Comodini Cachia, appearing on behalf of the Caruana Galizia family, asked: “After 17 Black was identified as Yorgen Fenech’s, what steps did you take as a Cabinet?”

Fearne: “The institutions had the remit to act. The government would ensure that they are doing a good job... it is not the Cabinet’s role to investigate.”

Judge Mallia said that the sense of business as usual, despite the strange money flows and deals, was creating a sense of impunity in the country.

The 2016 vote of confidence in Konrad Mizzi was not a free vote, Fearne said. He was answering the panel that pointed out that he had voted in favour of Mizzi in the parliamentary confidence vote.

Fearne: “That was a very strange situation as the motion was presented by Marlene Farrugia and the parliamentary group followed the instructions of the Whip who at the time was Godfrey Farrugia [Marlene’s partner].”

Neville Gafa

Comodini Cachia asked about Neville Gafa, the former OPM official. “At some point he was a health ministry employee. Is this true?”

Fearne: “When I was parliamentary secretary, Neville Gafa had an office at the ministry and was there from Godfrey Farrugia’s time. His position was to report to OPM. Every ministry had an OPM coordinator. Soon afterwards, Konrad Mizzi had appointed him to the Foundation for Medical Services and he would coordinate things there. The day after I was made minister, I was informed by Mizzi’s lawyer that Gafa might have been involved in medical visas shortcomings. That same day I had informed the police and his office was sealed. He didn’t work for the ministry again.”

Fearne said that he didn’t have information on what Gafa’s role at OPM was. He explained that Gafa had refused to speak to him after the sacking.

Comodini Cachia asked Fearne about a Deutsche Welle interview he gave shortly after the Caruana Galizia murder.

He explained that the interview was carried out shortly after the arrest of the three triggermen and that he was hopeful at the time – and still is – that police would also solve other car bombings. In the interview, Fearne had said that freedom of expression in Malta was threatened.

Fearne: “I am convinced that Daphne Caruana Galizia was murdered to shut her up – why else kill a journalist? It could have been a sign to intimidate other journalists.”

Questioning moved on. Fearne said he never met Yorgen Fenech or Brian Tonna at Castille and didn’t even know what Karl Cini looked like. Tonna and Cini are partners in Nexia BT, the financial services firm that helped Mizzi and Schembri open companies in Panama.

Asked about personal attacks on Caruana Galizia, he said: “I was never in favour of personal attacks.”