Less than two months after the 2013 general election and being appointed as the Prime Minister’s Chief of Staff, Keith Schembri created several new levels of secrecy for his company in the British Virgin Islands.

Journalist Daphne Caruana Galizia this afternoon revealed the lengths to which Mr Schembri went to further conceal his association with the company, which he had set up back in January 2011.

While before the election Mr Schembri undoubtedly played an important role within the Labour Party, his appointment as Chief of Staff left no doubt that he had become a Politically Exposed Person.

Mr Schembri was originally the sole shareholder, with a single share, and director of a British Virgin Islands registered company called Colson Services Ltd up until 7 May 2013 – less than two months after the Labour Party won the general election.

According to documents published by Mrs Caruana Galizia, Mr Schembri increased the number of the company’s shares from one to 50,000 on 7 May, 2013.  On the same day, ATC Administrators Inc took on all 50,000 shares and Mr Schembri relinquished the single share he had held until then – effectively removing his name from the company.

ATC Administrators Inc is owned by Mossack Fonseca and it is the same company which, for a time, held Mr Schembri’s Panamanian company, Tilgate Inc., and Minister Konrad Mizzi’s Panamanian company, Hearnville Inc.

On the same day, 7 May 2013, Mr Schembri also resigned as the company’s director, and in his stead appointed Jaqueline Alexander, a Mossack Fonseca employee who serves as a director of over 7,200 companies.

(Jaqueline Alexander: the Mossack Fonseca employee who took over the directorship of Mr Schembri’s British Virgin Islands company soon after the 2013 general election.  She is the nominee director of over 7,000 companies)

Later, on 5 July 2013, Jaqueline Alexander granted power of attorney for the company to Nexia BT’s Brian Tonna and Karl Cini.  Mr Tonna had been Mr Schembri’s accountant for 18 years and his firm, Nexia BT, had also advised Konrad Mizzi on the establishment of his Panamanian company.

As such, it is beyond doubt that these machinations were aimed at concealing the company’s ultimate owner, Keith Schembri.

A letter to Mossack Fonseca was sent by Keith Schembri on May 7, 2013, and read: “I, Keith Schembri hereby declare that, in consideration of your agreeing to provide directors/officers for the company Colson Services Ltd., agree to indemnify you and keep you indemnified in respect of all claims, demands, actions, suits, proceedings, costs and expenses whatsoever as may be incurred or become payable by you in respect of, or arising out of any membership or employee or associate of your company or associated companies holding any office, directorship or shareholdings in the company or by reason of or in consequence of any act or decision made by any such person or company in connection with the management and/or administration of the said company”.

In so doing, Mr Schembri basically offered security and protection against any loss or other financial burden.

In a letter of reference to Mossack Fonseca dated 22 May 2013, Brian Tonna wrote: “I confirm that we have known Keith Schembri for the last eighteen years acting as his accountants in relation to his various companies in Malta”. He also says that he has acted as Schembri’s personal advisor.

“I can confirm that we know him to be a person of integrity, honesty and good character and that there is no reason why you should not act on his behalf or provide business services to him”.

Interestingly however, nowhere did Mr Tonna mention that Mr Schembri was the Prime Minister’s Chief of Staff - a fact of which he was undoubtedly aware and which would have rung some PEP alarm bells, and as he said “there is no reason why you should not act on his behalf or provide business services for him”.

On 27 May 2013, HSBC Bank Malta plc provided BTI Management Ltd, a company owned by Nexia BT Holdings Ltd, with an ‘information report’ on Mr Schembri.

In the document published by Mrs Caruana Galizia this afternoon, under the HSBC document’s ‘general comments’, it is stated that Mr Schembri: “is known to us for a number of years as honest and trustworthy and unlikely to enter into commitments he would be unable to fulfil. Highly esteemed in his business circles. Considered to be a good business relationship”.

Mrs Caruana Galizia explained that HSBC might not have known the ultimate intended recipient, considering it had simply been asked to submit its reference to BTI Management Ltd in Malta.

Ms Alexander’s move of granting a general power of attorney to Mr Tonna and Mr Cini on 5 July 2013 allowed them to act individually and gave them the ability to manage the company without any limitations, the power to lend money with or without security etc.

The Prime Minister has refused to take any action whatsoever against Mr Schembri thus far.

Kasco's General Manager has same setup

Journalist Daphne Caruana Galizia also said that General Manager of Kasco Ltd. and Managing Director of Kasco Engineering Malcolm Scerri also had a company in the British Virgin Islands, Selson Holding Corporation, which was also setup on January 24, 2011. Malcolm Scerri was the sole director and the only shareholder of the company’s single share.

As with the previous company when Keith Schembri resigned as the sole director of Colson Services Ltd, Malcom Scerri, on 7 May 2013, resigned as director of Sleson Holding Corporation.

In the same manner, Scerri told ATC Administrators Inc to appoint a director as he resigned, and a new 50,000 share certificate was issued, thus raising the number of shares to 50,000. ATC Administrators Inc.  took the 50,000 shares.

Malcolm Scerri also wrote to Mossack Fonseca stating that he would indemnify them of all costs and expenses in relation to the company.

HSBC Malta again gave an information report to BTI Management Ltd on Scerri. The bank, in its report, said that Scerri is: “Known to us for a number of years as honest and trustworthy and unlikely to enter into commitments he would be unable to fulfill. Highly esteemed in his business circle. Considered to be a good business relationship.”

On 22 May 2013, Brian Tonna wrote to Mossack Fonseca and said: “I confirm that we have known Mr Malcom Scerri for the last ten years acting as his personal accountants and tax advisers and that the above address is the address shown in our records for him. I confirm that we know him to be a person of integrity, honesty and good character and that there is no reason why you should not act on his behalf or provide business services to him.”

On 5 July 2013, the director who took over the company called Giselle Ocampo gave Karl Cini and Brian Tonna power of attorney.