Adrian Hillman: Far more deeply embedded than we thought

Aqra bil-Malti

The Panama Papers revelations made the former managing director of Allied Newspapers Adrian Hillman’s involvement with disgraced former OPM chief of staff Keith Schembri apparent, but the hospitals’ inquiry discovered evidence that Hillman was far more deeply embedded in Schembri’s operations than previously thought.

While the Panama Papers revealed Hillman conspiring with Schembri to buy a printing machine for some €30 million – a project that brought The Times of Malta to its knees financially, while those involved allegedly pocketed kickbacks through offshore companies – the hospitals’ inquiry brought together the web engaged in both the sale of buildings owned by Allied Newspapers in Valletta and the efforts made by the same group of people to make millions off what taxpayers were paying the hospitals concession.

The concession refers to Hillman and Pierre Sladden of Redmap acting as liaisons for Schembri while he was supposed to be focused on running the country. Instead, at every turn, Schembri made efforts to profit from the deal in every aspect, from cancer facility equipment to property rentals to catering.

Schembri’s companies made millions, and Hillman and Sladden were among the primary enablers, according to the magisterial inquiry. Meanwhile, the public hospitals’ deal was not delivering results.

The problem with what the inquiry report states about Hillman shows his actions helped cripple The Times of Malta. Allied Newspapers had to sell its Valletta properties to make up for the loss of investments that Hillman presented to the board of directors as a vision for the future of the paper.

Investigators concluded: “What, in our opinion, would make sense of the arrangement would be if Sladden and Redmap (Sladden’s company) became involved in The Times of Malta building project only with the permission of Hillman and the influence of Schembri.”

The inquiry report and several other press investigations showed that Hillman was working with Sladden and Schembri, allegedly pocketing hundreds of thousands of euro.

At the same time, the newsroom in Valletta was put on austerity measures, weakening the journalists’ ability to conduct investigations at a critical time when its management was under scrutiny due to the Panama Papers leak.

The company conducted its own investigation, but the report was never published or shared with the newsroom.

The investigators point out that “Adrian Hillman is of interest to this inquiry due to his association with people and entities that are suspected of using the hospital concession funds illicitly for their own gain… He is currently charged in Malta with various financial crimes, including bribery and money laundering.”

Adrian Hillman was also instrumental in validating and introducing Ram Tumuluri, the front for Vitals Global Healthcare awarded the concession, to Ivan Vassallo. This ultimately led to Technoline being chosen as a preferred supplier to VGH after the concession was awarded, the inquiry notes.

The Shift revealed in 2019 that over €5 million of taxpayer funds was used by companies set up by VGH in Jersey to transfer the funds. Vassallo was a sales and marketing manager at Technoline before he suddenly acquired the millions needed to take over the company.

Once Technoline was bought, they proceeded to give the company decision-making power on services to the hospitals, placing all other competition at a disadvantage and maximising the profits from services the hospitals required.

Apart from Technoline, other companies are listed in the inquiry report in which Hillman was involved as either a front for Schembri or passing on information to him, including Gateway Solutions Ltd, MMXVI Ltd, Eurybates Ltd, and Astromedic Ltd.

All these companies, in some way or other, tried to siphon public funds intended for the hospitals.

Investigators concluded: “In our opinion, Adrian Hillman’s knowledge and involvement in Technoline and Gateway and with Ivan Vassallo and Ram Tumuluri places him as a trusted party in the ensuing illicit activity concerning these parties. It is also prescient that Ivan Vassallo felt he could drop Keith Schembri’s name into communications about these matters, which would further confirm Hillman’s trusted status.”

Once Technoline was purchased, they attempted to involve another company, Gateway Solutions Ltd (worthless at the time).

“Prior to 2015, Gateway Solutions Limited was a valueless IT company with little or no prospect for profitable growth. It did not operate in the pharmaceutical or medical supply sector. In July 2015, Ivan Vassallo and his four associates, Keith Schembri, Konrad Mizzi, Adrian Hillman and Pierre Sladden, began to take steps that would see Gateway enter the pharmaceutical and medical supply sector and lead it to acquire Technoline Limited.

On 3 April 2016, Ivan Vassallo emailed Adrian Hillman the latest version of the VGH/Gateway agreement; Hillman forwarded the email to Keith Schembri, who in turn forwarded it to Shaukat Ali. Adrian Hillman also provided Keith Schembri with Ivan Vassallo’s instructions and administration for the purchase by Gateway of Technoline’s shares. It would appear, therefore, that Adrian Hillman was used as a proxy to receive and send emails between Ivan Vassallo and Keith Schembri,” investigators concluded.

The inquiry identified Hillman, Vassallo and Sladded as freemasons.

On New Year’s Eve 2015, Vassallo emailed Hillman to reflect on the year: “I have it in mind that you will agree that 2015 was a rather exciting time. I, for one, found it so. What makes it especially memorable is my new acquaintance with you. I consider it a real privilege for our circles to have intersected so. And may I observe that more than an intersection, it is a congruence.

I especially value your incisive and analytical character. I am sure these attributes will result in a realistic and beneficial synergy that will be tough to beat. Please accept my unqualified regards and my very best wishes to you and yours for all the joy, health and prosperity in the year ahead.”

Whether they will continue to reap the benefits of this “beneficial synergy” remains to be seen. All are facing criminal charges in court.