Tax probe into Cutajar’s role in Mdina property deal ongoing ‘since February’ – report

A tax investigation into MP Rosianne Cutajar and her role in brokering an Mdina property for Yorgen Fenech has been ongoing since February, Times of Malta reports.

The story first broke in December 2020. The property deal, which was the subject of an investigation by Standards Czar George Hyzler, has led to Cutajar’s resignation as Parliamentary Secretary.

The report, which was handed to Speaker Anglu Farrugia last week, has identified a breach of ethics. Hyzler also recommended that the transaction is to be investigated by the Tax Commissioner.

Times of Malta said that the Tax Compliance Unit within the Inland Revenue Department started an audit and accompanying investigation a few weeks after it first exposed the €3.1 million property deal.

The probe is also looking into the role of other players, including Cutajar’s close associate Charles Farrugia, known as ‘itTikka’. The seller of the property, Joseph Camilleri, also features in the probe.

The deal fell through after Fenech’s November 2019 arrest and arraignment, and Camilleri is said to be chasing Cutajar to have her return a €46,500 brokerage fee he had paid her. Farrugia had received an identical sum from Camilleri.

Cutajar reportedly received a further €9,000 in cash from Fenech, while Farrugia received €31,000.

Time of Malta reported that Inland Revenue Commissioner Marvin Gaerty had requested his staff look into the allegations that Cutajar received €46,000 in cash for her role in brokering the deal. It is understood that the department is reviewing her tax declarations and comparing this with her lifestyle and purchases.

Hyzler’s report was published on Monday with the approval of all government and opposition members on the ethics committee. A debate will be held next Monday.

Following the publication of the report, Prime Minister Robert Abela said Cutajar’s resignation would remain in force. Her reforms portfolio was handed to minister Owen Bonnici.

The PN says Cutajar should also resign as a Member of Parliament.

The former Parliamentary Secretary denies taking any brokerage money.