In exclusive comments given to The Malta Independent, former Prime Minister Lawrence Gonzi yesterday said that former PN ministers Ninu Zammit and Michael Falzon must account for the source of their Swiss fund stashes.

Mr Zammit served as a minister under Dr Gonzi. The former Prime Minister said he had no inkling of Mr Zammit's holdings in a secret Swiss bank account.

The two former ministers only admitted to having the secret Swiss accounts after they were confronted about them by this newspaper.

Durign his tenure, Ministers' asset declarations were verified by the Cabinet permanent secretary, Dr Gonzi said.

Mr Zammit listed bank deposits in his asset declarations of Lm2,470 (€5,700) in 2003, Lm4,671 (€10,800) in 2004, Lm1,812 (€4,200) in 2005 and Lm2,464 (€5,700) in 2006, all at HSBC. 

"Every Minister and every MP has to declare their income as MPs and separately as ministers or parliamentary secretaries.  Our declarations were public, and we would verify the contents of the declarations through the permanent secretary," he said.

Dr Gonzi enphasised that had Mr Zammit's Swiss account been discovered, the matter would have been brought to his attention.

The former Prime Minister called on both Mr Zammit and former minister Michael Falzon to publicly account for the funds in their secret Swiss holdings.

Saying that their position has been regularised is not enough he said, as the two former ministers have to declare the source of the funds going into their secret Swiss accounts.

"I join with what Opposition leader Simon Busuttil said about the duties of these two people under the circumstances," Dr Gonzi said.

Mr Zammit has been suspended from the PN while Mr Falzon voluntarily suspended himself last week after he admitted to holding a secret Swiss account  following pressure by this newspaper. 

'Michael and Ninu are not Austin,' PM says

Meanwhile, in customary style, Prime Minister Joseph Muscat took to Twitter to express his views, saying that 'Michael and Ninu are not Austin.'

Mr Falzon and Mr Zammit have admitted to holding secret Swiss bank accounts, which were not declared to the tax authorities. The two avoided paying tax on the accounts, but have since "regularised" their position, having benefitted from government amnesties.

Mr Zammit said in a statement that his fiscal position was regularised in 2014, under a Labour government.  Mr Falzon has not said when his position was regularised, despite releasing a lengthy statement on Saturday.

Former Transport Minister Austin Gatt stated in 2013 to having a Swiss bank account which was inherited from his father.

Mr Gatt had said that he "forgot" to declare the account in his ministerial declaration of assets. He amended the declarations soon after. 

PM evasive on TMI questions

The Malta Independent sent an email to the Prime Minister asking him about the all this, but rather than answer the questions directly, he chose to palm the matter onto the opposition.

The Malta Independent asked: Both Michael Falzon and Ninu Zammit evaded tax for years on end. Are you condoning tax evasion?

Given their tax evasion, why do you feel the need to defend Mr Falzon and Mr Zammit?

You appointed Mr Falzon to the oil procurement committee. Have you held any meetings or conversations with him after he admitted to having a secret Swiss bank account, and do you intend to reinstate him on the committee?

Through his communications coordinator, the Prime Minister replied: ""Simon Busuttil is obviously afraid of Austin Gatt. He is ready to act against Michael Falzon and Ninu Zammit but not Austin Gatt. That is why 'Michael and Ninu are not Austin' - in reference to the tweet.

"The only person defending someone here is Simon Busuttil, who is defending Austin Gatt."

His spokesman said the PM has not held any meetings or spoken to Falzon since his Swiss account was revealed. 

 

Report by Jacob Borg and Rachel Attard