The government, the Finance Ministry in particular, have remained silent after it emerged that the head of the MFSA and another official who works for the financial services watchdog and also sits on the FIAU board travelled to Las Vegas with Yorgen Fenech in 2018.
Questions sent to Finance Minister Edward Scicluna remained unanswered by the time of going to print, despite the story breaking in the media over 24 hours earlier.
On Wednesday, Times of Malta reported that Cuschieri travelled to Las Vegas with Fenech, who stands currently accused of masterminding the murder of journalist Daphne Caruana Galizia, in 2018.
At the time, Cuschieri was transitioning from the MGA to the MFSA. His flights were paid for by Fenech, while the accommodation was paid for by the hotel – Caesar’s Palace.
Cuschieri confirmed the existence of the trip but said that there was no conflict of interest or ethical breach.
He said he had been invited by Fenech to attend the trip as the former regulator of the gaming sector. "At the time Mr Fenech was considering undertaking an investment and I was invited to advise on regulatory matters,” Cuschieri said.
Speaking to The Malta Independent later, Cuschieri said he was not paid anything for the advice he gave. When asked, he did not elaborate on what type of advice provided, saying that "it is inappropriate for me to disclose commercially sensitive information."
The trip took place before Fenech was outed as the owner of 17 Black, and well before he was charged with masterminding the murder of Daphne Caruana Galizia in November 2019.
The Nationalist Party has called on Prime Minister Robert Abela to dismiss Cuschieri, who was appointed at the MFSA during the Joseph Muscat administration.
The Malta Independent later reported that Edwina Licari had also been a part of the group.
At the time of the visit, Licari worked at the Malta Gaming Authority. She later joined Cuschieri at the MFSA, where she serves as General Counsel, and was also appointed on the FIAU board.
The fourth person in the group was Charlene Bianco Farrugia, who previously served as personal assistant to disgraced OPM chief of staff Keith Schembri. According to reports, she was no longer working directly under Schembri when the trip took place but was, nonetheless, still an OPM employee. She went back to the state information technology agency, MITA, after Robert Abela became Prime Minister in January.
Questions sent by this newspaper to both Licari and Bianco Farrugia on Wednesday afternoon remain unanswered. They were asked what the purpose of their visit was, and whether they had been paid by Yorgen Fenech for any services rendered.
This newsroom has sent questions to Finance Minister Edward Scicluna, the FIAU and the MFSA.
The only reply received was from the FIAU, which said it does not have the power to remove any of its own board members.
FIAU deputy director Alfred Zammit told The Malta Independent that, “decisions regarding the composition of the Board of the FIAU, including the appointment and termination of Board members, as per Article 19 of the Prevention of Money Laundering Act, are not within the remit of the FIAU. The Unit is therefore not in a position to take any action.”
Zammit continued that the responsibilities of the Board of the FIAU are limited to policy matters.
“This is strictly adhered to in practice and mitigates the risk that any situations of conflicts of interest arise. In fact, we can confirm that case-specific information is not discussed and is not accessible to the Board members of the FIAU.”
In a press release issued in 2017, the FIAU had explained that the board members are appointed by the Finance Minister, and are nominated by the Attorney General, the Chairman of the Malta Financial Services Authority, the Governor of the Central Bank, and the Commissioner of Police.
Two members of the Board are appointed as Chairman and Deputy Chairman by the Prime Minister.
MGA officials resign
Meanwhile, the MGA said on Wednesday that its Chief Executive Officer, Heathcliff Farrugia, has not renewed his contract.
It said its Chief Officer for Authorisations, Karl Brincat Peplow, was also expected to seek new ventures.
Times of Malta reported on Wednesday that Farrugia had been questioned at length by police over chats found between him and Yorgen Fenech, with police noting that the two had communicated at some length.
Farrugia was questioned by investigators from the Financial Crimes Investigation Department over what police sources described as “suspicious communication” with Fenech, who is a casino owner and who served as CEO of Tumas Gaming and of the Portomaso Casino, the Times reported. Farrugia denied that he had travelled with Fenech to Las Vegas.