Joseph Muscat allowed to use frozen bank accounts to pay bills

Disgraced former prime minister Joseph Muscat has been authorised by the court to make a series of payments from his frozen bank accounts, in a fresh decree that departs from earlier rulings on the matter.

In a recent decision, Judge Edwina Grima permitted Muscat to settle several outstanding financial obligations despite a sweeping freezing order imposed on his assets. The ruling allows him to cover private health and pension contributions, school fees for his twin daughters, tax dues owed to the Commissioner for Revenue, and monthly home loan repayments on his Burmarrad residence.

The court also authorised the payment of a €660 monthly instalment on his matrimonial home loan. However, unlike previous decrees modifying the freezing order, the judge did not specify the exact amounts Muscat is allowed to withdraw, an omission that marks a notable shift from earlier practice.

It is unclear why no details of the value of the outstanding bills were given in the public notices, as happened on previous occasions.

In a similar ruling last year, the court had detailed precise sums that could be accessed, amounting to €187,000.

These included €118,298 in provisional tax, €4,231 in unpaid stamp duties, and €20,619 in VAT arrears for 2024. Muscat was also allowed to pay over €25,000 in tuition fees at the QSI International School in Mosta, along with other personal loan and insurance arrears.

Muscat’s accounts remain frozen under a court order covering assets totalling €30 million. The measure was imposed following his arraignment on charges of bribery, corruption and money laundering, making him the first Maltese former prime minister to face such accusations in court.

He has consistently denied all charges and is separately contesting the freezing order, arguing it is excessive. His legal team maintains that the amount should be reduced to €60,000, corresponding to three payments that have been proven to have been received from Accutor AG.

According to findings from the Vitals inquiry, Muscat began receiving payments from Accutor AG shortly after his resignation in 2019. The Swiss firm, established in 2017, is alleged to have been involved in processing funds linked to the controversial hospitals concession awarded while Muscat was prime minister.

The inquiry indicates that Muscat entered into a consultancy agreement with Accutor AG as a “senior adviser,” earning €15,000 per month for three years, renewable for a further three years. Investigators suspect the arrangement may have served as a vehicle for kickbacks tied to the VGH concession.

Initial payments were made in March and April 2020, but UBS halted them due to concerns about money laundering involving a politically exposed person. Payments later resumed through another Swiss entity, Spring X Media AG, but were again stopped following similar suspicions.

Muscat continues to insist that the payments were legitimate and unrelated to any illicit activity. Meanwhile, the accounts of his spouse, Michelle Muscat, remain unaffected.