Issue link: https://maltatoday.uberflip.com/i/871892
maltatoday, SUNDAY, 10 SEPTEMBER 2017 4 News CONTINUED FROM PAGE 1 But Arcidi- acono insists it had actually refused to pay the success fee when asked by Delia a few days before signing the loan transaction in June 2009. The company already had a retain- er with Aequitas Legal. In its court application, the firm says it did not authorise the payment and that no written evidence exists that a suc- cess fee was agreed on. It also told the court that the cheque issued to Delia by the bank was not counter-signed by him, unlike the five cheques issued on the same day by the bank to settle the firm's dues to its creditors. The cheque was also redeemed that very same day. But now the court has made Delia a party to the case, which means he will have to answer for the substan- tial success fee charged to secure the loan, mainly used to pay credi- tors with whom Arcidiacono was in legal dispute. HSBC has also told the court that in the eventuality that it finds in favour of Arcidiacono, the bank reserved the right to recoup the payment from Delia. Adrian Delia was then appointed by Arcidiacono to secure the commer- cial loan, and settle the conditions for the firm to pay off its other creditors. Although the loan was taken out on 1 June, 2009, it was only in 2010 that Arcidiacono complained with the bank why it had – on that same day – issued the €86,210 fee to Adrian Delia. According to the testimony of HS- BC's then commercial relationship manager, Robert Delezio, Arcidi- acono had "seemed to even contest that [it] was aware of the amounts withdrawn [from the loan account]" – namely the fees paid upon issuing the loan. HSBC insisted in its of- ficial reply to the court that Arcidiacono was aware of the schedule of payments to creditors as well as legal and professional fees, from the €800,000 loan, and that the firm had only requested that a €20,000 sum be left in the account so as to finance structural works to an Msida showroom. Indeed all bank employees testifying in court said that on the day the loan was issued, both Arcidi- acono and Delia were present at the signing of the cheques as the loan contract was read out. Arcidiacono disputes that the sixth cheque, is- sued to Delia, was made out in his presence. "Adrian Delia had indicated the amounts of the five cheques issued on that day, which I communicated to Delezio," HSBC senior manager Ethelbert Fenech Adami told the court on the matter. Fenech Adami was responsible for issuing the cheques on behalf of the bank, one of which was a bank draft payable to Delia. "At no time was there any objection to any of the cheques being issued." This was confirmed by witness Eric Mamo, who described Delia as lead- ing the negotiations on the loan by speaking to the bank's lawyer and requesting cheques to be made pay- able to third parties. "The bank had been informed by Delia, that there was an agreement that should he manage to save the Msida showroom the company had, Delia would be paid the sum of Lm50,000 (€116,500)." After the loan transaction was settled, Arcidiacono received two receipts from Aequitas Legal and Aequitas Management for the combined sum of €86,210. Both HSBC and Delia insist this was a sign that the firm had accepted to pay the fees, since the company's accountant asked that the receipt be only issued by Aequitas Legal. HSBC also insisted in court it was not its duty to verify whether the legal fees requested by Delia were indeed backed up by a contract or agreement. In a letter to HSBC, dated April 2011, Adrian Delia told the bank that it was "completely incorrect that Mr Boris Arcidiacono was not aware of the payment which had to be effected to me. This payment was agreed beforehand as part of a larger amount, still to date unpaid, as was the fact that it had to be paid on deed." Delia said the sum was due to the change in nature of the brief from a purely litigation to a negotiation one. "I confirm that Mr Arcidiacono was fully aware of the issue of said cheque." Jersey offshore claims With a successful career in litiga- tion, Delia's professional affairs have already stolen the headlines. At one point, he was the director of an offshore company, whose ul- timate owner would have it used to conceal ownership of properties in London's Soho district that were lat- er raided by the Met Police in a bust on a Russian prostitution racket. At the centre of the opaque set-up was a Barclays International account on the tax haven of Jersey, which De- lia managed as a client account. After the Operation Pabail raid on the Soho prostitution houses, De- lia's name surfaced in a legal dispute between Emanuel, aka Lolly Bajada and the company Delia represent- ed, Healey Properties – believed to be ultimately owned by Emanuel's brother Eucharist Bajada. According to a legal letter, Delia's Jersey account should have forward- ed some £20,000 in monthly rent de- posited there for properties owned by Healey, to be later forwarded to the property owners. Delia later resigned as director of Healey Properties following the Lon- don raid in June 2003. A company memo seen by MaltaToday also has the name of Labour deputy party leader Chris Cardona listed as direc- tor, but the name is unsigned. Neither Delia nor Cardona have denied the allegations. But Delia has brushed off any alle- gations of impropriety, seeing as he was a lawyer servicing his client as was his duty at the time. A PN ethics inquiry however said Delia was not forthcoming in fur- nishing any more information on the use of the Jersey offshore ac- count. The PN's administrative council, basing itself on the inquiry's recommendations, asked Delia to reconsider his candidature. The candidate soldiered on, tak- ing over 616 votes from the Gen- eral Council's 1,354 voters, earning himself a place in the run-off with Nationalist MP Chris Said that is to take place on 16 September. Junior minister defends CONTINUED FROM PAGE 1 16-year- olds already enjoy the right to vote in local council elections – a measure introduced by the La- bour administration in 2015. Farrugia Portelli said that the questions were formulated after discussions were held with the youth wings of both of the coun- try's leading political parties. These included whether it was inconsistent that 16-year-olds are allowed to open bank accounts and pay taxes, but not allowed to vote and whether the reduction in voting age was going to lead to better representation of their in- terests. The European Union had ad- vised all countries to lower voting age to 16, Farrugia Portelli said. "We're not stopping there, we aren't afraid of discussion." She acknowledged that there were valid questions about the possibility of towns having 16-year-old mayors, but did not appear to be overly troubled by this. "I have reflected on the issue over several days. There is noth- ing in life that can prepare you for political life," she said. Andrew Debattista, who will be managing the Vote 16+ four-week consultation phase - after which the results will be analysed to for- mulate a policy - said that other countries allowed 16-year-olds the vote. Austria had introduced the measure in 1992 and Scotland had also allowed the age group to vote in the recent referendum there. Argentina, Austria, Brazil, Cuba, Ecuador and Nicaragua allow 16 year old voters, he pointed out, adding that East Timor Ethiopia, Indonesia, North Korea and Su- dan, allowed it at 17. South Ko- reans were allowed to vote at 19, Bahrain, Kuwait at 20, he said. In order to have new energy in local councils Malta needed to look to the future, said Silvio Parnis, parliamentary secretary for local councils. Parnis touched upon the thorny issue of whether or not 16-year- olds should be allowed to become mayors, saying: "The discussion is that if you, as a 16-year-old are elected and have enough votes should you be the mayor? I be- lieve that when you touch the seat of responsibility your priorities change overnight." Parliamentary secretary Clifton Grima hailed the proposal as "a message of hope, a sign that we truly believe in our youth." He pointed out that 16-year-olds currently have rights and obliga- tions at law. "They can start busi- nesses and make a will. A glance at those laws means that the legis- lator had already recognised that there are obligations and rights on 16-year-olds that is why the way forward is to encourage youths to participate in civil society and politics." Fee charged to secure loan questioned ANALYSIS by James Debono: Fighting off the establishment Pages 8-9 Adrian Delia is contesting the PN leadership with Chris Said