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3 NEWS 8.4.2021 FROM PAGE 1 "A property worth €1 million would be listed as having been sold to the in- vestor for €500,000," one source said. "e remaining €500,000 would change hands in cash and remain undeclared." And laundered. And wheras these investors would usually invest heavily into construction and partnerships, the arrest of Keith Schembri, formerly chief of staff to then Prime Minister Joseph Muscat, and finacial services advisors Brian Tonna and Karl Cini - together with a number of the three's closest busi- ness partners and colleagues - has left many questioning the merit of getting involved with third parties. BusinessToday has learned that prop- erty magnates and real estate develop- ers are now very leery of putting their money into projects involving other in- vestors - with the possibility down the line of seeing all their assets frozen or seized if the other investors are found to have been involved in anything illicit in their business dealings. Staff in Schembri's, Tonna's and Cini's business ventures, including account- ants, financial officers and managers, were also charged with counts of mon- ey laundering and fraud. And when the Court ordered the freezing of all assets belonging to the three, hundreds of other individuals and companies who had previously had any sort of business dealings or connection with them - as well as their families and relatives - had their assets frozen as well. Now, developers are worried that they too might find themselves in the same situation if any of the people they do business with is somehow discovered to be involved in any illegalities. One contractor said that he had can- celled on put on hold 18 projects since the high-profile arrests, as he was re- thinking those partnerships. "Across those projects, I was in part- nership with 24 other individuals or companies," he said. "Now, like many others, I am re-evaluating whether it is worth to get involved with others, when it could come back to haunt me in the future." Property development is mostly a sure investment for seasoned developers, who throw milions into projects rather than parking their cash in low-yielding bank accounts or financial investments. "e problem now is that many, like me, are taking a step back and taking a closer look at the people and business- es they deal with and have done so, in some cases, for years," the contractor said. Another developer said that he had been involved in a project in a Qormi with two other investors. "We have already submitted our plans to the Planning Authority, but now one of the other investors wants to pull out," he said. "He says it's because he's afraid to have his money tied up in a project with other people." is appears to be a common theme across the industry. "Investors have become suspicious of people they do business with, even if they have known them for years," an- other investor said. "My problem is that, unless I decide to go into some projects alone, I don't know what I would do with my money. I need that money in- vested fast." But for many - smaller - developers and investors, going it alone is a daunt- ing task of its own. Most usually enter into partnerships because of what oth- ers bring to the table, and remaining a level detached from actually running a project. Another contractor said that he had 11 projects put on hold as investors got cold feet or sought an exit strategy. "My largest project was a development in Sliema and now I am seeking legal advice as to what my options are con- tractually with regards to the defaulting investors," he said. "Most worrying is that these develop- ments, and what is surely yet to come, will have a crippling effect on Maltese businesses and their hopes of investing, joing partnerships and enticing foreign businesses to join local endeavours," he said. e contractor said that the effects of the revent developments on the industry would be felt for years. "ose who can read between the lines know that this is not a good place for Malta to be," he said. Epic to invest €40 million in mobile network modernisation EPIC will be investing more than €40 million to upgrade its mobile phone network, paving the way for 5G rollout, the company announced today. e modernisation process will be done in partnership with Swedish multinational company Ericsson. Describing the investment as a "new milestone" for the company in Malta, a statement said the modern- isation process will strengthen Ep- ic's existing network and prepare it for 5G roll out. "Our modernisation project is go- ing to bring wider coverage and fast- er speeds and is also going to make 5G available to our customers. We are pleased that following a very rig- orous technology partner selection process, we are accelerating the evo- lution of our network to step into Malta's digital future to help Mal- tese consumers and businesses un- lock their full potential," Epic Malta's CEO Tamas Banyai said. is news of Epic's network mod- ernisation project follows the oper- ator's more recent announcement regarding the partnership with Phoenix Tower International (PTI), which helps Epic accelerate its in- vestment plans in its network and digital services. Epic is the Malta arm of Monaco Telecom, which bought Vodafone Malta's entire shareholding last year in a deal worth €250 million. e company rebranded last No- vember to Epic. Mobile phone operator Epic announces €40 million investment to modernise its network infrastructure and pave way for 5G rollout epic CEO Tamas Banyai Developers beginning to question past and present partnerships Keith Schembri being transported to prison after being arraigned for money laundering, corruption and fraud

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