MEP David Casa has called on the European Commission to investigate practices by Pilatus Bank that he has described as abusive and tantamount to harassment of media houses.
In a letter addressed to Commissioner Mariya Gabriel, in her capacity as Commissioner responsible for the Digital Single Market, David Casa argued that the practice of intimidating media houses with multi-million euro lawsuits in jurisdictions outside the EU is unacceptable and justifies as well as requires an EU response.
The practice is known as SLAPP (Strategic Lawsuit Against Public Participation).
SLAPP lawsuits are based on allegations of a civil claim for damages. However, the aim is generally not a legal victory, but transforming issues of public debate into private issues that are the subject of litigation thereby preventing groups, and in this case media houses and journalists, from exercising their rights and duties in informing the public about matters of public interest.
In the letter PN Head of Delegation David Casa stated:
“Pilatus Bank, a bank established in Malta, is at the center of the Panama Papers scandal. One leaked report by Malta’s Anti-Money Laundering Agency (FIAU) shows the bank was allegedly used by the Prime Minister’s Chief of Staff Keith Schembri to receive kickbacks from the sale of Maltese passports, amongst others.
In addition, a leaked FIAU compliance report reveals that Pilatus Bank’s other clients are predominantly Politically Exposed Persons (PEPs) from Azerbaijan, a non-reputable and high-risk jurisdiction. The report also reveals massive, arguably intentional, anti-money laundering violations”.
Pilatus Bank is now threatening Maltese media houses with multi-million dollar lawsuits in other jurisdictions, particularly the United States. The Bank has no presence in the United States. Pilatus Bank has requested the removal of content, the deletion of certain phrases and the deletion of articles from the online archives of Maltese media houses.
Their aim is to intimidate media houses by threatening to cripple them financially.
This is abusive. It is harassment. It is unacceptable.
The cross-border nature of journalism and the tactic of forum shopping also in jurisdictions outside the EU by these organisations justifies and requires an EU response.
I call you on you as the Commissioner responsible for the Digital Single Market, to launch an investigation into these practices. And to propose counter-measures that will protect media freedom, protect the right of EU citizens to access digital information and curtail this abuse”.
Mr Casa attached the relevant transcripts of the FIAU reports to his letter.
“How these people still have a banking licence is beyond comprehension. The intimidation of Maltese media houses now makes taking action all the more urgent”, stated Casa.