BNP Paribas, Société Générale, Natixis, CIC and Rivage Investment case in Malta
For justice beyond
borders
Why was legal action taken against four French banks and an investment fund?
Sherpa reminds that, any person accused or prosecuted by a national or international jurisdiction is presumed innocent until found guilty by a final court decision. In this respect, an appealable decision does not constitute a final decision.
The Maltese journalist Daphne Caruana Galizia was assassinated on Octobre 16, 2017 as she was investigating a corruption scandal. Her revelations, later confirmed by the Panama Papers, brought to light the alleged political corruption linked to the privatisation contract of the Maltese gas sector awarded to Electrogas Malta Limited. At the heart of the affair was Yorgen Fenech, one of the majority shareholders and director of the company at the time, also currently indicted for complicity in the journalist’s murder. He allegedly bribed Maltese politicians with money funnelled through his company, 17 Black, for Electrogas to be favoured in the privatisation deal.
In 2020, Sherpa and the Daphne Caruana Galizia Foundation filed a complaint for money laundering, corruption, complicity, and concealment of stolen goods against BNP Paribas, Société Générale, Natixis, CIC and Rivage Investment concerning a large loan operation for the benefit of Electrogas.
This case shows the ineffectiveness of banks’ due diligence measures and questions the role of financial intermediaries, like banks, in corruption scandals.
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Key dates
Impact
Why initiate legal action?
The law is a tool of power in a globalised world. It underpins power relations and encourages impunity for the most powerful. Because of their transnational nature, or the political and economic stakes involved, many violations escape justice. Bringing cases before the courts means putting the debate back on a legal footing, giving a voice to the people affected and thus restoring the legal tool to social movements.
Thanks to the work of NGOs and journalists, the consequences of globalisation are increasingly being documented and denounced. Our legal actions make it possible to initiate contentious proceedings, establish the facts and apply the rules of law to these situations. They also aim to provide practical solutions by putting a stop to violations, holding the players concerned responsible and/or enabling victims to obtain compensation.
In support of our advocacy and in parallel with our legal laboratory and capacity-sharing activities, our legal actions are designed to contribute to wider and lasting change. They fuel public debate to highlight the limits of the legal framework and the obstacles facing the victims of globalised capitalism. They set precedents that shape a more protective legal framework.
