Silvio Zammit used John Dalli’s name in approach to Swedish Match

Dr Kimberly told me not to inform Silvio Zammit about what was going on

Investigations by Olaf, the EU antifraud office, and the Malta police, led to the conclusion that Silvio Zammit was using then EU Commissioner John Dalli’s name when he contacted representatives of the company Swedish Match, and suggested a €60 million price tag for a change to the tobacco directive, a court heard yesterday.

Magistrate Anthony Vella was hearing the evidence of Assistant Commissioner Michael Cassar, who was asked to reveal the conclusion of the Olaf report. He said he could not do that because the police investigation about the case is purely the police’s case. The Olaf report was used only to see who were the parties involved. As for the John Dalli case, he could not say anything more, it is still under investigation.

Mr Cassar said the Maltese police’s investigation was totally independent of Olaf’s. The police had gone to Brussels in November and spoke with all parties involved in the case, including Olaf’s head, Giovanni Kessler.

Silvio Zammit, 48, of Sliema, is accused, among others, of trying to influence John Dalli to change the EU tobacco directive. He is pleading not guilty.

The court heard that Mr Zammit had asked for €10 million for a first meeting between Mr Dalli and Swedish Match, and another €50 million when the EU tobacco directive ban was removed. Mr Cassar said Mr Zammit, a Nationalist former deputy mayor in Sliema, told the Swedish representatives that the money had to be paid directly “to his boss”.

Mr Cassar testified that it was Kessler who had approached Gayle Kimberly, a legal consultant for the Malta Gaming and Lotteries Authority, when she was attending a Portugal conference for the authority last 14 June. Olaf had launched its formal investigation that day, after Swedish Match reported the corruption allegations to the EU. The Olaf report led to Mr Dalli’s resignation from EU Commissioner.

Dr Kimberly was the first person to be questioned by Olaf. The interrogation lasted some seven hours. Mr Cassar said the details of the interrogation of Dr Kimberly had been immediately revealed to the accused by Iosif Galea, her lover, who was with her. Dr Kimberly had warned Mr Galea not to reveal anything.

Galea accessed the emails Dr Kimberly was sending to Kessler, in which she gave him details about what she knew of Mr Zammit and Mr Dalli. Galea admitted he had only read the document and erased it, and denied he had revealed its contents to Mr Zammit.

Mr Galea is a friend and business partner of Mr Zammit. He told the court he had heard Mr Zammit mentioning the figure of €60 million in a telephone conversation with Inge Delfosse, general secretary of the European Smokeless Tobacco Council, Estoc.

The court was informed that Dr Kimberly is in the early stages of pregnancy, and could not testify. Inspector Angelo Gafa exhibited a report by the Cyber Crime Unit about an analysis carried out on Dr Kimberly’s computer. It showed a document entitled “meeting with commissioner” which was created at about 11.45am on 7 February this year.

Iosif Galea testified that he has been employed with the Malta Lotteries and Gaming Authority for about five years. He is a friend of Silvio Zammit and looked after details related to the circus and his restaurant. He has not continued this work since the police called him in connection with this case.

He has a normal friendship with Mr Zammit, and they had gone abroad together about three times. He does not know how long ago he had heard the word snus (a smokeless form of tobacco which is legal only in Sweden). Nor does he know whom he had heard mention the word the first time. He knew Dr Kimberly because she worked at the authority and their offices were only three doors apart.

Mr Galea said Mr Zammit had asked him whether he knew a lawyer and in October last year he had introduced Dr Kimberly to Mr Zammit, who needed a lawyer. He was not sure whether Mr Zammit had told him why he needed a lawyer. Dr Kimberly worked in Brussels and had spe- cialised in European law, and that was why he approached Dr Kimberly. Mr Zammit had asked for his help, Mr Galea said, referring to the tobacco directive.

He had had a telephone call from Mr Zammit when the latter was likely in Sweden, with a certain Mario Mercieca. They apparently were with Inge Delfosse. Mr Galea said that that day he was with Dr Kimberly at Naxxar, Mr Zammit had telephoned him, and asked whom he was with. But he could not remember exactly what Mr Zammit had said. At this stage Mr Galea appeared uneasy, with Inspector Gafa warning him to put his mind to it.

Mr Galea said he passed the mobile to Dr Kimberly and he could not remember exactly what she had said, as he had moved to another room. The apartment they were in belonged to Mr Zammit. The first time he had heard about the tobacco directive was after a meeting, towards the beginning of January this year, between Mr Zammit, Dr Kimberly and John Dalli.

Mr Galea said he did not think that Dr Kimberly had made any connections about the directive before that meeting. Before going into the meeting he had received a call and he did not follow all proceedings. The meeting lasted about six or eight minutes. His call lasted longer and he could remember everyone leaving. Mr Galea said he did not remember who had phoned him.

All he had heard was “tobacco di- rective” but he knew it was John Dalli and Dr Kimberly talking, with Dr Kimberly taking notes. He did not know what the reason was for the meeting.

Mr Galea said he did not know in what context the tobacco directive was raised. Silvio Zammit was just listening. After the meeting he left in his car, he did not know what the others did. From then on he could not remember that he had heard anything, but he saw “Meeting with commissioner”. He had the password to Dr Kimberly’s emails.

About the conference in Portugal, he said he was with Dr Kimberly. The day after they arrived Dr Kimberly was stopped by two people and instead of going to the conference she continued talking to them. She remained with them for seven hours, and he had attended the conference himself.

When she returned she said she had been interviewed by Olaf people, and she showed him two business cards of those who had interviewed her. All he knew was that she had been interviewed by Olaf. Dr Kimberly burst out crying and asked him why he had introduced her to Silvio Zammit. She told him they were speaking to her about a tobacco directive.

Mr Galea said Dr Kimberly told him not to inform Silvio Zammit about what was going on. He phoned Mr Zammit.

The magistrate warned Mr Galea not to play with words because he would put him under arrest, even for 24 hours, to recall the facts. Magistrate Vella said he would be dealing with him differently from now on. Mr Galea said that as soon as he arrived in Malta he phoned Mr Zammit and told him what Dr Kimberly had said.

Asked by the magistrate why he chose Mr Zammit over Dr Kimberly, Mr Galea said it was because he knew Silvio Zammit better. Mr Zammit did not say anything when he stopped talking. He had phoned Mr Zammit from Portugal and then when he arrived in Malta. He told Mr Zammit not to tell what he had told him. But later he got to know that Mr Zammit had phoned Dr Kimberly.

Among the charges Mr Zammit is facing is that he tried to influence John Dalli, then EU Commissioner, to amend the EU tobacco directive.

Mr Zammit, who was put on a bill of indictment, was allowed bail on a deposit of €25,000 and a personal guarantee of €75,000.