As expected and amply predicted, the results of an independent audit into Konrad Mizzi’s trust and company structure was published tonight, an hour after the minister handed it to the PANA committee investigating the Panama Papers scandal.

The audit firm, according to the Department of Information, issued its opinion that the financial statements of the structure were presented fairly, in all material respects and in accordance with accounting policies. The auditors have confirmed that the evidence that they have obtained was sufficient and appropriate to provide a basis for their audit opinion. It is confirmed that:

·        The trust structure was registered with the New Zealand tax department in 2015;

·        The structure is solely intended as a family trust;

·      There have been no trading activities undertaken by both Rotorua Trust and its fully owned subsidiary Hearnville Inc;

·        No bank accounts were held by the trust and company. 

Minister Konrad Mizzi today addressed the PANA Committee, explaining that this structure was always intended as a family trust for assets and investments.

He said that he had notified the establishment of the structure at the first available opportunity, which was the Ministerial Declaration of Assets.

He explained that part of the services offered to him by the service provider were to make enquiries on the setting up a bank account. However, he did not open a bank account and did not give power of attorney for a bank account to be opened on his behalf. In fact, no bank account was opened.

Minister Konrad Mizzi stated that the setting up of this structure was used by the Opposition in a concerted campaign of character assassination against him.

Mizzi said that he felt that he should attend the PANA Committee and give his version of events, even though some of its members have already publicly pronounced themselves about this case with politically-charged statements. This is regrettable especially given that the remit of this committee is to investigate alleged contraventions and maladministration in the application of Union Law in relation to member states and not individuals.  

He explained how the leader of the Opposition used parliamentary privilege to make baseless defamatory allegations against him without offering any proof to his allegations.

Minister Konrad Mizzi also referred to false allegations with respect to contracts related the Electrogas consortium, the same contracts which were reviewed and approved by the European Commission and hence removing any false doubts or speculations raised by the Opposition.

Members of the opposition have also lied with respect to the Shanghai Electric Power investment in Enemalta which has led the company to be in a much stronger financial state.

Minister Mizzi also explained that some members of the press published false allegations as part of the Opposition’s character assassination campaign targeting him. He referred to an article claiming that he did not indicate that he was a Politically Exposed Person. On this specific case, the journalist who wrote the article claimed under oath that the headline was changed to a misleading one by the editorial team.

Another false allegation made by the press was that Minister Mizzi did not claim that his structure was set up for “estate planning”. This time, the journalist penning the article admitted that he overlooked the whole document with “estate planning” ticked, although the document had always been part of the Panama Papers database.

The Minister said that the Opposition made unfounded allegations on millions allegedly earned by him before his political career, and made up stories on Gasol’s transfer of shares, amongst others. 

Minister Mizzi stated that he was the only politician in Maltese history requesting both an independent audit and a tax audit to be performed on his assets and structure, since he was confident that he acted in good faith throughout. He said that the independent audit published today clearly demonstrates this.

The audit was carried out by Crowe Horwath International, one of the largest public audit and accounting firms in the world. Crowe Horwath is one of the top 10 global accounting networks and has won various awards including best financial advisory company global in 2016.

Minister Mizzi also announced that he started the process to wind up the company.

Minister Mizzi's declaration

Independent audit

 

Nationalist Party reaction

In reaction, the Nationalist Party said that no audit will replace an investigation by the police or the FIAU, the agency set up to investigate fraud and money laundering. The Maltese people do not want useless audits but to see what the FIAU investigation led to and what steps are to be taken by the police against Konrad Mizzi and Keith Schembri.

No audits justify the corrupt plan that Keith Schembri, Konrad Mizzi and the Egrant owner to open companies in Panama, in which they were to place one million euro a year from commissions. These companies were opened five days after the last general election, the PN said.

The latest lies put more pressure on the Prime Minister to take all necessary steps against Mizzi and Schembri, the PN said.