Former MGA CEO Guilty of Leaking Information to Yorgen Fenech

On May 27, 2024, Malta's Magistrate's Court found Heathcliff Farrugia, the former CEO of the Malta Gaming Authority (MGA), guilty of revealing official secrets. Farrugia disclosed confidential information to Yorgen Fenech, a casino mogul awaiting trial for his alleged involvement in the murder of investigative journalist Daphne Caruana Galizia.

Farrugia was handed a conditional discharge, meaning he will not serve jail time unless he commits another offense. The court's decision followed the discovery of a 24-page conversation between Farrugia and Fenech on September 23, 2019, where Farrugia informed Fenech of an impending raid on Casino Malta, a competitor of Fenech's Portomaso Casino.

Why this matters: This case has significant implications for the integrity of regulatory bodies in Malta and raises concerns about the potential for corruption and abuse of power. The consequences of such actions can lead to a lack of trust in institutions and undermine the rule of law.

Inspector George Frendo testified that the conversation was flagged during an analysis of Fenech's phone by Europol. The investigation revealed that Farrugia had attempted to console Fenech by claiming the contents of a compliance review report were not public and that he would try to delay its release.

During the court proceedings, it was revealed that Farrugia informed Fenech about future inspections at Casino Malta. This information was later confirmed by an investigation conducted by Malta's Financial Intelligence Analysis Unit.

Fenech, who was arrested in 2019 while attempting to leave Malta's waters in a private yacht, has vigorously denied charges of masterminding the murder of Daphne Caruana Galizia. The journalist was killed in a car-bomb attack in 2017, an event that shocked the nation and drew international attention.

Farrugia, who served nearly seven years in various roles at the MGA before becoming CEO in 2018, resigned in November 2020 after being questioned by police regarding the messages sent to Fenech. The court's ruling highlighted the serious breach of trust and confidentiality expected from someone in Farrugia's position.

Magistrate Ian Farrugia, who presided over the case, noted that while there was sufficient evidence to prove Farrugia's guilt, he believed Farrugia's claim that he disclosed the information to calm Fenech down and show that the authority treated everyone equally. This led to the decision to conditionally discharge Farrugia rather than impose a jail term or fine.

This case highlights the ongoing legal and ethical challenges surrounding the investigation into Daphne Caruana Galizia's murder, and the broader implications for the integrity of regulatory bodies in Malta.

Key Takeaways

• Heathcliff Farrugia, former MGA CEO, found guilty of revealing official secrets to Yorgen Fenech.
• Farrugia disclosed confidential info about an impending raid on Casino Malta to Fenech.
• Fenech is awaiting trial for alleged involvement in journalist Daphne Caruana Galizia's murder.
• Farrugia received a conditional discharge, no jail time unless he commits another offense.
• The case raises concerns about corruption and abuse of power in Malta's regulatory bodies.