Keith Schembri’s wife charged with money laundering

Josette Schembri Vella, wife of former OPM chief of staff Keith Schembri, and her company 3City Designs Ltd, on Friday were charged with money laundering €1.5 million.

Schembri Vella, 45, of Mellieħa, appeared in court before magistrate Claire Stafrace Zammit, accused of laundering money between 2008 and 2020 and failing to observe all of the duties of a company director.

The police had earlier said that a legal representative of a company and a 45-year-old woman from Mellieħa was to be arraigned on Friday.

Schembri Vella pleaded not guilty to the charges and was granted bail against a €10,000 deposit and personal guarantee of €40,000. She has to sign a bail book four times a week and must be home between midnight and 6.30am.

During court proceedings yesterday, the prosecution was unable or unwilling to say what the predicate offence – the crime necessitating the laundering of the money – was.

Schembri Vella’s lawyer Edward Gatt argued that he is noticing a common practice as of late with regard to financial offences. He said they are pushed by “national necessity”. “These are trumped up charges, some don’t exist,” he went on. Gatt argued that the charges had nothing to do with the evidence he was shown in disclosure by the police, decrying what he said was a “huge abuse of power.”

Superintendent Frank Anthony Tabone and Inspectors Lianne Bonello and Ian Camilleri prosecuted.

Lawyers Edward Gatt, Veronique Dalli, Mark Vassallo and Ishmael Psaila appeared for the accused.

Keith Schembri had also been charged with money laundering and corruption last March. He was arraigned after the conclusions of two separate magisterial inquiries.

One of them was related to allegations of corruption in the purchase of a printing press by Allied Newspapers. It is unclear what the second inquiry was about.

Schembri had initially been denied bail but was released on 4 April. He is currently being treated for a serious medical condition.