Joseph Muscat, the former prime minister of Malta, is the subject of new allegations that he was given a sizable monthly consulting contract by a business connected to the owner of the Dragonara casino. The Times of Malta reported that Muscat began receiving monthly payments of €11,800 ($12,300) as part of a yearlong consulting agreement worth €141,600 ($151,500) with an organization that deals with exotic birds owned by casino magnate Johann Schembri. This agreement saved the casino millions by taking place at the same time as the casino’s property lease extension.
Questionable Connection to Exotic Bird Company
According to reports, Muscat started receiving the hefty payments just nine months after Schembri’s property lease agreement for the Dragonara casino was extended. The lease renewal, which Muscat oversaw while serving as prime minister, included 64 additional years without a public bidding procedure and considerable savings in yearly ground rent payments. According to the charges, the favorable treatment of the casino in the lease agreement may be related to Muscat’s consulting agreement with Schembri’s exotic bird company.
Dubious Financials of the Exotic Bird Company
The company in question, Organicum, specializes in rearing exotic birds and creating organic products, according to documents obtained by the media. Its limited operations, which include only two employees and significant losses in 2020 and 2021, have prompted questions, though. Further doubts are raised about the company’s ability to maintain such a lucrative advisory contract for Muscat given that its declared biological assets are worth €100,000 ($107,000).
Denials and Counterarguments
Joseph Muscat declined to respond when asked about the consultancy deal but denied doing anything improper. Instead, he criticised the media for making an effort to disparage respectable work. Johann Schembri, on the other hand, defended the consulting agreement and claimed that it was unrelated to the agreement with the Dragonara casino. He vigorously refuted any allegations to the contrary, claiming that Muscat was never given consulting fees by Dragonara Gaming Limited, the business that holds the casino concession.
Additional Corruption Probe and Schembri’s Role
Muscat is already a target of a corruption inquiry for a different regular consulting arrangement he has with the Swiss firm Accutor AG. The contract, at €15,000 ($16,050), is believed to have served as a cover for kickbacks in connection with Steward Healthcare Malta’s 2018 acquisition of Vitals hospitals. Johann Schembri, a well-known name in the gambling industry, occupies an important position there. The management of the Maltese national lottery was given to his umbrella business, IZI Group, last year.
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