Court to appoint an independent administrator to manage Schembri’s companies

Keith Schembri
Miguela Xuereb

Tista' taqra bil- Malti.

The court is expected to issue a decree calling for an independent administrator to oversee Keith Schembri’s companies. Within two days, the independent administrator will have to be agreed upon by the Attorney General and Keith Schembri himself before the administrator is appointed by the courts.

The companies which belong to Schembri are; Navis Logistics Limited, Kasco Limited, Kasco Recycling Limited, Its Good Limited, FSV Limited, Kasco Engineering Company Limited, Berner Malta Limited, 3City Designs Limited and Kasco Holdings Limited.

On Monday it was reported how Keith Schembri’s employees received their salary after a court order was changed. One of Schembri’s lawyers confirmed with this newsroom that the employees were paid last week but the court order to freeze all moveable and immoveable property remains in place.

Last month Madam Justice Edwina Grima issued an order to freeze all assets held by Keith Schembri, his wife and one of his two daughters, among others. Around 100 families were affected by the situation. Schembri ended up filing an urgent court application requesting that the court releases sums of money so that his employees could receive their salary.

The court order by Madame Justice Edwina Grima was issued over suspected money laundering following the conclusion of an inquiry report into allegations of bribery between Keith Schembri and Brian Tonna. The inquiry had to establish if the former chief of staff at Castille, Keith Schembri received €100,000 in kickbacks on passport sales from the Nexia BT director Brian Tonna. The inquiry was based on an FIAU report that was leaked.

The court, presided by Mr Justice Lawrence Mintoff, noted how the freezing of Schembri’s assets was an order to the detriment of the companies and its employees. It was also noted how in a matter of days these companies will likely have to close down and will have to be declared as bankrupt if the situation remains as is.

The Attorney General objected to the appointement of an independent administrator to adminster Keith Schembri’s companies as investigaitions have just started and argued that it is too soon to appoint an administrator and therefore said that the companies cannot operate as if no investigation is underway.

The court presided by Mr Justice Lawrence Mintoff, did not agree with the AG and ordered that an independent administrator should be appointed.