Issue link: https://maltatoday.uberflip.com/i/694236
maltatoday, SUNDAY, 19 JUNE 2016 4 News Alfred Mifsud files criminal report against former partner for blackmail MATTHEW VELLA DEPUTY Central Bank governor Alfred Mifsud has filed a police re- port to press defamation and black- mail charges against his former companion, Anna Zelbst, who has alleged the former Mid Med Bank chairman had taken bribes for the installation of banking software by the M Demajo group. Mifsud, 65, has denied the alle- gations of kickbacks from Ronnie Demajo, which Zelbst said she wit- nessed when the businessman visit- ed the couple's residence in Balzan. "I deny ever receiving any mon- ies from Demajo. The choice of IT system at Mid Med was carried out by technical officers, and they will be testifying in court to show that what has been alleged is a lie," said Mifsud, who has been touted to become the next Central Bank governor. Mifsud, a long-time Labour sup- porter who at one time employed Joseph Muscat at Crystal Finance, claimed his former partner had repeatedly sent him text messages threatening him that she would ruin his chances of becoming gov- ernor unless he pays her part of the proceeds from the sale of Allcare Insurance, one of his firms. "The choice of governor is not mine, and the decision is not for me to take. I stand by what I said: I did not take bribes. Ronnie Demajo was more of a friend to Anna than mine." Zelbst, 62, emerged as the whistle- blower behind allegations that Mifsud had taken bribes from De- majo for the supply of the Eastpoint banking software when Mifsud was Mid Med Bank chairman between 1996 and 1998. She came forward on Malta In- dependent columnist Daphne Caruana Galizia's blog to say she witnessed Mifsud accepting cash bribes after he filed a libel suit against Caruana Galizia. Zelbst, a former head of sales at One TV, the Labour Party's televi- sion station, was made a director of the government's investments arm Mimcol in 2014. The former cou- ple, who have children together, spent over 20 years in a relation- ship. Zelbst claims that as Mid Med Bank chairman during the 1996- 1998 Labour administration, Demajo had visited their Balzan residence "at least three times, and each time he brought with him Lm50,000 in cash. "The cash deliveries were made to our house because they couldn't be made to the office or anywhere else, and I suppose Ronnie came personally because he couldn't risk involving anyone else. "When Alfred was removed from his position as bank chairman in 1998, I know – because he used to complain about it – that Ronnie Demajo still owed him Lm70,000 but never paid it because now Al- fred was no longer at Mid Med. That had really upset him." After the Nationalist re-election, Mifsud resigned and the bank was privatised and sold to HSBC. Zelbst has also claimed that Mifsud would give her Lm10,000 to deposit it in her account and write him a cheque for that same sum so he could transfer it to his own ac- count. "It would look like money coming from me. I very much re- gret doing it, but at the time I just obeyed him. It was only much later that I understood the implications of allowing him to use my bank ac- count that way." Zelbst has declared she is una- ware of why Demajo handed the cash over to Mifsud, but Caruana Galizia said that former senior bank officials told her that upon being appointed chairman, Mifsud was pushing for a change in Mid Med's software system. When Mid-Med Bank was sold to HSBC in 1999, the Eastpoint system supplied by Demajo was scrapped and the company entered into litigation with HSBC Hold- ings/Mid Med Bank. Mifsud has categorically denied the allegations and said Zelbst was "motivated by revenge and hate from a failed personal relationship (after refusing unreasonable de- mands for financial settlement)… "With 47 years uninterrupted expe- rience in financial services without ever being accused of impropriety, I cannot be expected to prove my innocence rather than the accusers proving their allegations." The finance ministry is probing the corruption allegations. Zelbst has claimed that Mifsud threatened her that he would "leave her with nothing to live on" if she spoke to the press. "I have no mon- ey of my own and no income, no rights because even though we were together for 24 years and have two children, we were never married. Now he is threatening to starve me into submission and blackmail me into not speaking about this." CONTINUED FROM PAGE 1 One com- plaint to the commissioner was that when one volunteer group arrived in Cambodia, the committee members were apparently on holiday in neigh- bouring Burma – upping sticks and leaving volunteers to handle the out- reach project. Montanaro was also reported to the Commissioner over statements he made in a Whatsapp chat with volunteers and committee members in which he refers to Cambodian children as 'window washers', 'kid- ney donors' and 'just bloody kids.' Another message by Montanaro stated: "I hope he's not considering becoming a surgeon cause I'm go- ing to need a cornea in a couple of years and I'm cashing on El Mingo!" – Mingo being a distortion of one of the children's names, Meng. In his warning letter Wain reminds Montanaro: "The 'silly banter' as you call it continues in an equally of- fensive and distasteful manner with your cruel and insensitive remarks about 'Meng' who, one assumes is one of the boys you were there to help, and your similarly offensive remarks about the girls at the village which I needn't quote." "Specifically, calling the children your organisation is supposed to be helping, and for whom one assumes you care, 'just bloody kids. Window washes or kidney-donors the lot of them' cannot ever pass for a joke, or even for a 'rather crude' sense of humour. The remark is offensive in itself and calls in question the very motive behind Drama Outreach in Cambodia because one cannot be- lieve that you have the children's in- terest and well-being at heart when you state this attitude towards them." Wain warned that the Voluntary Organisations Act obliges him as Commissioner to monitor the be- haviour of the administrators of vol- untary organisations. On financial accountability, Wain was even more unequivocal. He said "all kinds of funds must be acknowl- edged, receipted and reported in the organisation's financial statement and report submitted to the Com- missioner." He knocked Montanaro's excuse of this being 'clearly an oversight' as not acceptable and pointed that all financial transactions had to be kept and noted. He directed Montanaro to bring the contents of the report to the attention of the board of adminis- trators of Drama Outreach and to discuss it in the next meeting and to subsequently copy him with the minutes of the meeting. He also obliged him to ensure that financial accountability was ensured. On Drama Outreach's website, sponsors are invited to contribute €275 a year to support a child's ba- sic daily meals, school materials, school uniform, haircuts, medical and dental check-ups and pocket money, which they are learning to save in their bank accounts. The website claims that when sponsor- ing a child one will also be support- ing the child's family with a sack of rice. The website says the progress of the sponsored children is monitored, and ensuring that they are attending school. "As godparents you will receive regular updates on the child's devel- opment," the website proclaims. The Drama Outreach Project has as its president Alan Montanaro and in- cludes six other members. He also Alfred Mifsud has pressed charges against Anna Zelbst (inset) The messages where Montanaro refers to Cambodian children as window washers and kidney donors 'One cannot believe you have the children's interest at heart'