Grixti benefit fraud arraignment postponed as magistrate abstains
Former Labour MP expected to be charged alongside four others over scam
A magistrate hearing the arraignment of former Labour MP Silvio Grixti over a massive benefits fraud scam abstained at the eleventh hour, forcing the sitting to be postponed.
Minutes before the case was to begin yesterday, Magistrate Leonard Caruana said that, since he became aware of certain proceedings, he was abstaining from hearing the case.
Grixti, 49, a family doctor from Żejtun, was one of five people due to be charged in connection with a massive social benefits racket.
He was in court for the hearing where he was expected to face charges of forming part of a criminal group, fraud, falsifying documents, making false declarations, money laundering and purchasing property when they knew it was derived from criminal activity.
The prosecution also asked the court to disqualify Grixti from practising as a doctor.
The others expected to be charged with him were Roger Agius, 45, from Luqa, Emmanuel Spagnol, 69, from Żejtun, Dustin Caruana, 36, from Tarxien and Luke Saliba, 33, from Msida.
However, the case may now have to be reassigned to a different magistrate before they can be charged.
Lawyer Jason Azzopardi told the court he had no problem if Caruana presided over the case.
Lawyer Franco Debono, defence counsel to Grixti, insisted that, though he had utmost trust in the presiding magistrate, he asked to be given time to register his official position on the matter. At that point, the magistrate ordered everyone out of the courtroom and proceeded to speak to the lawyers behind closed doors.
It is understood that lawyers for the other defendants also
said they had no problem with Caruana presiding over the case.
The delay follows months of investigations, with the police finally being able to arraign the five for their alleged involvement in the social benefits racket that saw people fraudulently receiving benefits they were not entitled to.
Hundreds of people have been investigated for taking part in the scam that was made public by Times of Malta last year.
Agius was Grixti’s driver and prosecutors believe he played a major role in the racket. Agius has called for a magisterial inquiry into the social benefits racket, saying he is willing to tell all about the “criminal organisation” linked to the scam if given whistleblower protection.
Spagnol is suspected of having served as a fixer in the racket while investigators believe Caruana was a runner. Saliba, meanwhile, is suspected of having used his IT skills to perpetuate the fraud.
Evidence indicates Grixti provided false medical documents to help people, often hailing from Labour strongholds, to receive social benefits averaging €450 monthly for severe disabilities they did not suffer from.
The police Financial Crime Investigations Department began investigating the racket in October 2021, after an e-mail flagged a suspicion that a number of individuals had been presenting forged medical certificates to claim unjustified social benefits.
Since then, the police have combed through hundreds of suspicious files of people who were receiving the benefits, interrogated them and charged most of them in court.
Some of the claimants told the police they were referred to Grixti by a Labour minister, Labour politicians’ aides and even customer care officials from the prime minister’s office.
Attorney general lawyers Abigail Caruana Vella and Charmaine Abdilla prosecuted along with police inspectors Shaun Friggieri, Andy Rotin and Wayne Rodney Borg.
Lawyers Jason Azzopardi and Kris Busietta represented Agius. Michael Schriha represented Caruana and Spagnol. Franco Debono and Arthur Azzopardi represented Grixti. Saliba was represented by José Herrera and Matthew Xuereb.