The Malta Institute of Accountants (MIA) has distanced itself from the individuals at the centre of a money laundering and tax evasion case, clarifying that neither of them are members of the Institute.

Reports on 26th January said that accountants behind the firm Ennesse, Nigel Scerri and Mikaela Scerri, have been charged with money laundering and tax evasion after an investigation uncovered discrepancies in tax and VAT payments amounting to €1.5 million.

In response to inquiries made by WhosWho.mt, the MIA stated: "Kindly note that Mr Scerri is not a member of the Institute. On the other hand, according to public records, Ms Scerri is not a certified public accountant. With regards to the warrant, the Accountancy Board upholds the responsibility to act as it deems fit with regard to specific individuals according to the Accountancy Profession Act."

The MIA emphasised its commitment to integrity and ethics, adding: "The Institute expects accountants to respect and uphold the values of the profession, notably integrity and ethics. For this reason, we have our own disciplinary procedures as per statute and bye-laws, which would be applicable in case of members breaching the standards set by the MIA. However, while the actions reported in the press are condemnable, they do not reflect the core values of the absolute majority of the members of the profession, which upholds integrity and ethics at its heart."

The case

Appearing before Magistrate Rachel Montebello, Ms and Mr Scerri were accused of multiple financial crimes, including providing false documents to the Tax Commissioner. The companies Ennesse, Nimik Ltd, Accountingwise Ltd, Davvero Ltd, Payrise Limited, NYG Ltd, Sopralific Ltd, Starseekers Ltd, Volando Ltd, Drivingforce Limited, Delvetro Ltd, Double Leisure Ltd, Obregado Ltd, Performante Ltd, and Semprenoi Ltd also face charges. Both individuals pleaded not guilty.

A tax audit conducted by the Malta Tax and Customs Administration (MTCA) initially covered the period between 2016 and 2022 but was extended to May 2024. The audit revealed that the couple had acquired approximately €12 million in property during this time and held 26 active bank accounts, 19 of which were in Malta, with the rest in EU countries such as Germany, Belgium, and Lithuania.

It was also discovered that they had taken out two home loans of around €400,000 and €500,000, repaying them in just three and eight months, respectively. This rapid repayment was flagged as suspicious.

An MTCA accountant noted discrepancies in community acquisitions exceeding €280,000, where suppliers reported providing more services than what was declared. This was identified through a shared VAT refund database across the EU, where businesses log sales and list client details.

Investigators also compared the couple's declared income against their accumulated assets. The MTCA accountant explained that their analysis included asset appreciation while subtracting estimated living expenses. However, it did not account for lifestyle expenditures such as travel, as their methodology follows the National Statistics Office’s (NSO) estimated average yearly living expense for a family of four, set at €28,000.

During the court proceedings, prosecutors requested a freezing order on the couple’s assets. Defence lawyer Joe Giglio argued that an administrator had already been overseeing their finances since October. Nonetheless, the court approved the request, giving prosecutors 90 days to specify the assets to be frozen.

Police inspectors Tonjoe Farrugia and Robert Azzopardi, together with Attorney General lawyers Andrea Zammit and Rebecca Spiteri, are leading the prosecution.