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3 News d in PAC Asked whether the properties transferred to the Labour Party could be redeveloped, Mamo said that from his limited knowledge, the scheduled properties could not be redeveloped although he did not exclude such a possibility. Confirming that the Lands Department was acting upon the legal advice of the Attorney General, Mamo said: "The Attorney General explored all legal avenues before advising the department to initiate legal proceedings against the Labour Party." He explained that the department attempted to repossess six or seven properties, including Australia Hall in Pembroke and St Thomas's Tower in Marsascala. He said that while the Lands Department was instructed to repossess all properties previously owned by government which were in a derelict state, the department only initiated legal proceedings against the Labour Party. Asked to confirm whether the department was owed Lm250,000 (€582,000) by the Labour Party in unpaid ground rents, Mamo said that he was not aware whether this was true. maltatoday, WEDNESDAY, 18 DECEMBER 2013 Mater Dei's CEO gets 'verbal warning' MIRIAM DALLI MATER Dei Hospital CEO Joe Caruana was given "a verbal warning" after he went out on leave shortly after issuing an internal notice informing doctors that all elective, non-essential surgeries were to be postponed. A spokesperson for Health Minister Godfrey Farrugia said that Caruana also "apologised" to the permanent secretary for the way the matters were handled. At the same time, the Health Ministry admitted that Caruana's leave was taken so he would be able to travel abroad for health reasons. "Although Mr Caruana's visit abroad was for health reasons, he has apologised to the Permanent Secretary and was also given a verbal warning," the spokesperson said. On Sunday, MaltaToday reported that while the hospital was crippled with overcrowding, Caruana went out on leave, leaving the hospital's superintendent in charge. A few days before, Caruana was called for a meeting at the Office of the Prime Minister during which the shortage of beds crisis was discussed. The meeting was held while both Prime Minister Joseph Muscat and the Health Minister were abroad. To tackle the crisis, Caruana decided that the 'best' option would be to postpone non-essential surgeries to a 'quieter' time. According to the health minister, the decision – which he only came to know about from the media – was not taken by Castille but by the CEO. Farrugia had insisted he not been informed that operations were to be postponed, even though he had since returned to Malta. "Such lack of communication is unacceptable, because at the end of the day I am responsible for decisions taken in health." He also took umbrage at the fact that Caruana went out on leave without first informing him. "I only got to know by coincidence," Farrugia said. Since the role of an acting CEO does not exist, Caruana left the hospital's leadership in the superintendent's hands. However, Farrugia believes that the CEO should have cancelled his leave. "The first thing I do in moments of crisis is to return to base. That is my opinion and I believe that protocols should be in place regulating such occasions," he said. llia 'bound by professional secrecy' Home Affairs Minister Manuel Mallia (left) and Education Minister Evarist Bartolo tained while serving as legal counsel to Powerplan would constitute a "crime as contemplated in the Criminal Code". The PN yesterday accused Mallia of not coming forward with allegations of bribery to the police. "Mallia must take political responsibility for what Farrugia told the PAC," the PN said, referring to Farrugia's testimony in the public accounts committee, in its inquiry on the Auditor General's report on Enemalta's fuel procurement policy. Farrugia said that in 2010, Mallia was already aware of the bribery taking place on fuel procurement. "According to Farrugia, Mallia actually threatened him he would report him to the police unless he reaches a settlement with the John's Group," the PN said. But questioned by MaltaToday on whether he should have gone to the police with the information after deciding to contest the general elections, Mallia insisted that anything that may have been said during the meetings with his client were "strictly confidential". Mallia's law firm was appointed legal counsel to Powerplan during a company board resolution dated 27 September 2010, signed by the five Farrugia brothers, of the John's Group. The board resolution stated that the "appointment relates specifically to the misappropriation of funds by the said Mr [George] Farrugia against the company". The minister pointed MaltaToday to correspondence – which he said could not be divulged due to professional secrecy – that "shows very clearly that the subject under discussion were the fraudulent acts committed by George Farrugia against the company". During Monday's PAC, Nationalist deputy leader Beppe Fenech Adami said that all the Farrugia brothers had known all along that kickbacks were being paid for the supply of oil to Enemalta, and that Farrugia had been siphoning off money payable to Powerplan to his own company Aikon, which he set up without the knowledge of his brothers. According to Fenech Adami, Mallia had used this information as leverage to convince Farrugia in reaching a settlement with his brothers, threatening that he would report the allegations to the police. On his part, Mallia insisted yesterday that the criminal activity he had referred to was the fraud and money laundering Farrugia had committed. "It is indeed very strange for lawyers to spin for their political advantage certain known legal principles. It is normal practice that a lawyer, on behalf of his client demanding payment of damages as a result of fraud and money laundering, writes that if payment is not made criminal action will be taken." According to Article 257 of the Criminal Code, a lawyer is liable to a two-year term of imprisonment for divulging any professional secret confided in them, except when compelled by the law or if this pertains to any offence under the Dangerous Drugs Ordinance, or the Prevention of Money Laun- dering Act. Mallia added that anything which has been said during the "one meeting" held with George Farrugia with his clients was "strictly of a legal, professional nature". Mallia denied giving any third party any information or detail on this case, and that he was no longer involved in this legal matter after March 2011. "Dr Beppe Fenech Adami should hopefully know that if I were to divulge any information on any case, it is a crime as contemplated in the Criminal Code," Mallia said. Article 642 of the Criminal Code also states that lawyers cannot be forced to reveal any knowledge derived from the professional confidence placed in their assistance or advice". This gives lawyers the privilege that they cannot be forced to divulge confidential information, apart from being also prohibited by the advocates' code of ethics. But according to Fenech Adami, himself a lawyer, who spoke during the PAC, Mallia's clients were the Farrugia brothers, and not George Farrugia – suggesting that reporting the case to the police would not be a breach of professional secrecy. It was pointed out during the PAC by parliamentary secretary for justice Owen Bonnici that Farrugia was still a Powerplan Ltd shareholder and therefore, still involved with the company. mdalli@mediatoday.com.mt Mater Dei CEO Joe Caruana

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