A Magistrates’ Court heard a police inspector testify yesterday how two men charged with forging documents and illegally issuing nautical licences had admitted their involvement during questioning.

Police Inspector Ian Abdilla was testifying in the compilation of evidence against 60-year-old Fgura resident John Farrugia, who works as a small ships administrator at the Malta Maritime Authority, and Ivan Muscat, a 30-year-old MMA clerk from Zurrieq.

Both men are pleading not guilty to charges related to accepting bribes to issue false nautical licences to an estimated 450 people and forging documents in June and the previous months.

They are also being charged with forging documents of the Malta College for Arts, Science and Technology and defrauding the

college, misappropriating funds, maliciously using false documents and committing a crime they were duty bound to prevent.

Inspector Abdilla said that both Mr Farrugia and Mr Muscat had admitted that they were involved in accepting bribes to issue the false nautical licences.

He explained that the Economic Crimes Unit was first informed about the case on 24 March, when it received a report from the MMA asking the police to investigate the issuing of nautical licences that seemed false.

He said that, according to the small ships regulations, anyone driving a sea-going vessel with an engine of over 100 horse-power had to have a licence issued by the MMA.

However, in order to be granted this licence, people have to follow a two-week basic seamanship course at the Malta College for Arts, Science and Technology. This course costs around Lm50. Then, with they have obtained the certificate, people had to submit an application, pay Lm10, and a licence is issued.

Inspector Abdilla said that an internal audit conducted by PricewaterhouseCoopers on behalf of the MMA revealed that the number of licences issued did not tally with the number of people who had attended this course. He explained that this was possible because a number of people are exempt from attending the course.

He testified that some certificates had false serial numbers, some had payment receipts which did not exist and others had been issued in the names of people who had not attended the course.

Around 1,780 applications came from people who had not attended the course, but after deducting those who were exempt, only 445 were suspicious. He said the rumour was that people paid Lm200 for a nautical licence without having to attend the course.

Inspector Abdilla said the police had questioned four people who were directly involved in the issuing of nautical licences. These were Small Ships Section head Mr Farrugia, Mr Farrugia’s secretary Alice Peplow and Mr Muscat and Alex Mizzi, both clerks.

He said Ms Peplow and Mr Mizzi were very surprised to hear about the investigation and the police have no evidence to prove their involvement. The inspector said that while Mr Farrugia was in custody, he told a policeman that he wanted to speak to him.

When Mr Farrugia met Inspector Abdilla, he told him that he wanted to tell the truth and get it off his chest. He explained that some three years ago, he had been approached by a certain Alfred Mizzi who he knew had some boats and usually asked for his help with regard to berthing facilities.

He told the inspector that Mr Mizzi asked him to issue a nautical licence for someone he knew who did not have an MCAST certificate. He said Mr Mizzi provided him with a blank certificate and he had filled it in for him. Following this, Mr Mizzi started going to him regularly with blank certificates and paid him Lm20 each in order to have them filled in. Mr Farrugia said that in three years he had filled in around 400 certificates.

Mr Farrugia continued telling the inspector that Mr Muscat, his subordinate, had noticed something was wrong with the certificates and when he spoke to him about this, he (Mr Farrugia) told his clerk to close an eye and he would give him half of what he was receiving.

Mr Farrugia said that he was very careful because Alex Mizzi, his other subordinate who worked with Mr Muscat, was a very morally upright man who would have reported him, if he found out.

He told Inspector Abdilla that he had spent the money he received from Alfred Mizzi on personal items.

The inspector said that the day after he released his first statement, Mr Farrugia went through all the documents the police had and identified the certificates that bore his handwriting.

Inspector Abdilla said that, at first, Mr Muscat did not reply to any of his questions during the interrogation, but then he decided to admit his involvement and gave a story that more or less corroborated Mr Farrugia’s version.

He told the inspector that when he noticed that some certificates were false, he spoke to his boss (Mr Farrugia) who told him to close an eye. He said that for this he received around Lm50 every month or so. This did not tally with what Mr Farrugia had told the police – that he gave Mr Muscat Lm10 for every certificate.

Inspector Abdilla said Alfred Mizzi had also been questioned by the police but had categorically denied his involvement. He said that in the meantime, the Economic Crimes Unit had spoken to over 500 people, most of whom admitted their involvement and told the police they had paid for a false licence. He said that criminal proceedings will be initiated against these people in due course.

At the end of yesterday’s sitting, magistrate Audrey Demicoli, who is presiding over the case, ruled that there was enough prima facie evidence for a bill of indictment to be issued against the two men.

The case continues.

Police Inspector Ian Abdilla prosecuted. Dr Anglu Farrugia and Dr Edward Gatt appeared for Mr Muscat, while Dr Michael Sciriha and Dr Franco Galea represented Mr Farrugia.