A court on Tuesday was told of how millions of euros from construction works carried out on behalf of 44 clients over a seven-year period were not declared to authorities.

The information emerged following the testimony of FCID inspector Joseph Xerri in the compilation of evidence against Martin Farrugia, 45, from Rabat and Henriette Cassar 49, who are accused of fraud and money laundering in connection with a €62 million VAT carousel,

The compilation of evidence began before Magistrate Leonard Caruana on Tuesday morning.

The offences are alleged to have taken place between 2012 and 2019 and involved the companies NCCF, MAM Construction LTD and MWF Construction Ltd.

Farrugia, who is registered as a builder and Cassar, a clerk working at Farrugia’s companies, have denied the charges against them.

Xerri told the court that the FCID had detected significant discrepancies between what had been declared to the VAT department, including €27 million in the sales of one company which went undeclared.

Police also found a €2.8 million discrepancy in another company’s income that should have been subject to VAT, but also went undeclared.

The court heard how a long list of other individuals and companies were involved or affected by the alleged fraud through payment for construction works and sales of machinery.

Some of the individuals and entities in question are still under investigation, Xerri told the court.

Lawyer Abigail Caruana Vella is prosecuting on behalf of the Office of the Attorney General, together with police Inspector Joseph Xerri.

Lawyers Franco Debono and Francesca Zarb represented Henriette Cassar, while lawyers Etienne Borg Ferrante and Dominic Micallef appeared on behalf of Martin Farrugia.

Lawyers Arthur Azzopardi, Jacob Magri and Rebecca Mercieca are representing a group of alleged victims, as is lawyer Stefano Filletti.