A private investigator was yesterday sentenced to two years’ imprisonment after being found guilty of making false allegations “that created a national scandal”.

Joseph Zahra, 50, from Marsascala was found guilty of making false allegations against various people and fabricating evidence in creating a fictitious report on the tendering process for equipment at the Mater Dei Hospital.

He was also accused of making false allegations against people which could have resulted in criminal charges being pressed against them, spreading false allegations that could have resulted in alarming the public and making defamatory allegations.

He was also accused of posing as a private investigator without having the necessary licence to do so.

The issue revolved around the Mater Dei Hospital equipment tender. The O90 million tender had been awarded to INSO after it beat off competition from SIMED and Hospitalia. The decision was appealed, however, INSO was re-awarded the contract. SIMED then proceeded to appoint Zahra as a private investigator to establish whether there were any irregularities.

During proceedings, Prime Minister Lawrence Gonzi testified that he had met representatives from SIMED who presented him with a report compiled by the accused in which he claimed that various people Claudine Cassar, daughter of Joseph Spiteri, director of contracts; Sebastian Dalli – brother of the then Finance Minister John Dalli (in charge of government tenders) had met various officials from INSO. The report also claimed that various meetings had taken place abroad and that bribes had been handed out.

Police Commissioner John Rizzo was instructed by Prime Minister Gonzi to investigate the matter thoroughly, and he spoke to Zahra informally. During the meeting, Mr Rizzo started to uncover numerous discrepancies and later warned the accused that he was officially under suspicion.

He changed his story and admitted that the report was totally fabricated. Mr Rizzo said that Zahra told him he had invented it because he had already been given payment by SIMED and that the managing director Sieste Zoodsma was very persistent. Zahra said that he received some 10 telephone calls and various emails to that effect.

Mr Rizzo also said that he checked whether the people mentioned in the report were actually abroad and the result was negative. He said Zahra admitted the whole thing was a pack of lies and that he based his fabrications on information from the internet and the telephone directory.

It also tuned out the accused’s company, Professional Private Investigation Limited was to receive some three per cent of O90million (the value of the contract). The police also established that Zahra had received O9,500 in direct payment. The accused did not produce any witnesses in his defence.

The court, presided over by magistrate Giovanni Grixti, said it was clear the accused was trying to portray that huge sums of money had been paid out to sway the contract.

Magistrate Grixti said the accused made allegations that caused a national scandal and that other people could have faced serious legal repercussions. He said the court had to be severe in handing down punishment and therefore sentenced him to two years’ imprisonment, along with a five-year general interdiction period. Police superintendent Peter Paul Zammit and inspector Ian J. Abdilla prosecuted.