The Kasco Group will not be supplying Crane Currency with any machinery for its $100 million facility being established in Malta, but the company, owned by the Prime Minister’s chief of staff Keith Schembri, could carry out servicing for the American currency printing company, according to Mr Schembri.
In comments sent to this newsroom this evening, Mr Schembri confirmed that, “No company within the Kasco Group will be supplying Crane Currency with any machinery.
“Having knowledge of the industry, I can confirm that currency printing machinery requires strict security features and specifications and therefore such machinery is not acquired through third parties but directly from the manufacturer.”
Mr Schembri’s explanation comes after allegations that Mr Schembri’s company could be the suppliers of printing machinery worth millions of euros for Crane Currency, which signed an agreement with Prime Minister Joseph Muscat, in the presence of Mr Schembri, last week.
Mr Schembri went on to explain how, “For the sake of completeness, if Crane Currency does ultimately procure machinery from Komori, Kasco Group, being the agents of Komori for the last eight years, and having the necessary know how, may be tasked with the servicing thereof, as has been the case with another company in the currency industry in Malta.”
Mr Schembri adds, “There is no doubt that being such an important international commercial entity, Crane Currency will be taking its decision based on what makes commercial sense for them.”
Keith Schembri
Schembri condemns ‘puerile attacks’
Mr Schembri also condemned allegations in the media made in his respect, explaining, “I am proud of my involvement in bringing investments from all quarters of the globe, and despite all puerile attacks on me, I shall remain at the forefront of all efforts to attract investments to Malta that create quality work for Maltese families.
“It's a sad day for the country when Simon Busuttil and his 'spokespersons', are once again hell bent on attacking important investments that shall benefit the country as a whole.”
Earlier in the day, Prime Minister Joseph Muscat said he saw no conflict of interest in having a currency printing company setting up shop in Malta and acquiring its printing machines from a company co-owned Mr Schembri.
The multi-million euro investment by Crane Currency was announced last week, on Independence Day.
Journalist Daphne Caruana Galizia, however, claimed that Crane Currency will be buying currency printing equipment from Komori, whose agent in Malta is Kasco Technical Services.
Mr Schembri, according to Mrs Caruana Galizia, co-owns Kasco Technical Services along with Malcolm Scerri. Mrs Caruana Galizia claimed that Keith Schembri would be making “a massive commission on the sale to Crane of its Komori machines”.
Asked about the matter during a visit to MCAST yesterday, Dr Muscat said he saw no conflict of interest and when pressed, he told journalists “not at all”.
Dr Muscat insisted that Mr Schembri had not been involved in the negotiations, saying that the discussions had been led by Malta Enterprise. However, Dr Muscat thanked his chief of staff for his role in helping secure the contract. According to the Prime Minister “this was all coming from certain people’s obsession with Keith Schembri”.
Joseph Muscat said that Mr Schembri’s business is a private one and that it should not be disqualified as such from the outset.
PM Joseph Muscat and his Chief of Staff (first from right) during the signing of the agreement with Crane
Dr Muscat said Mr Schembri was not involved in the negotiations, saying that the discussions were led by Malta Enterprise. However he thanked his chief of staff for his role in helping secure the contract. Pressed to comment further, Dr Muscat said “this was all coming from certain people’s obsession with Keith Schembri.”
Malcolm Scerri
The Malta Independent also asked the Prime Minister about the audit into Minister Konrad Mizzi’s Panama company and New Zealand trust. Asked when the audit would be published Dr Muscat did not commit to a timeframe but said the report would be published soon. “These things take time,” he said, referring to auditing. “What I am sure of is that the report will be published once it is completed. If anything, the fact that it is taking time shows that things are being taken seriously.”
Konrad Mizzi
Asked whether Konrad Mizzi would be appearing before the Panama Papers EP committee, Dr Muscat said a decision would be taken if and when a request was received. The PM added that this was not the question of just one country and added that he was not in favour of dwelling into controversies with the European Parliament.
Dr Muscat was also asked about giving 16-year-olds the right to vote and said he agreed that this should be the case and that the debate had re-emerged.
Prime Minister should explain Keith Schembri's role in the deal with Crane Currency - PN
The Nationalist Party said in a statement that Joseph Muscat should explain what was the role of Keith Schembri in the negotiations carried out with Crane Currency.
The PN said that with his private business, Keith Schembri has an 'obvious conflict of interest.' 'The Maltese public has the right to know what Keith Schembri will gain out of this deal', it said.
'This is a case of conflict of interest which is clear to anyone except for Joseph Muscat.'
Desperate attempt to foil quality jobs - PM
The latest bitter political attack on a $100 million American investment which will create 300 productive, quality jobs, is nothing but another desperate attempt to foil quality jobs from coming to Malta, the Prime Minister reacted in a statement.
"As a commercial entity Crane Currency, which works with some 60 governments including the US Government, chooses its own suppliers according to its commercial needs. Since equipment related to currency requires strict security features, Crane Currency purchases its equipment directly from the supplier and does not need agents. The Government is not aware of commercial decisions which are, or will be taken, by the company now or in the future."
The statement said that the government will remain steadfast in providing investors and entrepreneurs the right environment to invest in our country and keep providing better jobs for the Maltese and Gozitans.
Video: Jonathan Borg