Yesterday was the first time that OPM Chief of Staff Keith Schembri acknowledged some form of connection between himself at 17 Black, a company first mentioned by slain journalist Daphne Caruana Galizia.
It was revealed on Wednesday that 17 Black was listed as the ‘main client’ and ‘possible Payer/Sender’ of Tillgate and Hearnville, the offshore Panamian companies owned by OPM Chief of Staff Keith Schembri and Tourism Minister Konrad Mizzi. The information came from leaked emails obtained by German paper Süddeutsche Zeitung, and published by Times of Malta as part of the Daphne Project.
In a statement issued by the Department of Information, Keith Schembri said: “17 Black and MacBridge were included in draft business plans for my business group as potential clients. My companies make dozens of business plans such as these. However, it is a fact that neither 17 Black nor MacBridge ever became clients of my business group, and no transactions were ever recorded with these companies, or with me personally. I have no knowledge of the transfers referred to, nor any knowledge of the alleged payment.”
This marks the first time Schembri admitted to some form of link to 17 Black, stating that they were included in draft business plans for his business group as potential clients
Back in May 2017, The Malta Independent had revealed how investigations by the Financial Intelligence Analysis Unit (FIAU) revealed the transfer of money from a company connected to Armada Floating Gas Services Malta, owners of the LNG tanker berthed in Marsaxlokk, to a Dubai-based company – 17 Black - allegedly created for the purpose of transferring kickbacks to then Minister for Energy Konrad Mizzi and Prime Minister Chief of Staff Keith Schembri.
Sources at the time had told this newsroom that another 120-page report with damning evidence on Mizzi and Schembri was also under lock and key within the unit awaiting conclusion. That report has since been presented to an inquiring magistrate by PN MEP David Casa.
The Malta Independent had seen extracts of the report that shows how investigations by the unit revealed that there were two attempts to transfer money to 17 Black from Orion Engineering group (a company registered at the same address and having the same involved parties as Armada Floating Gas Services Malta Ltd).
Following the article, then Opposition Leader Simon Busuttil had slammed Prime Minister Joseph Muscat on the issue during a televised debate. Keith Schembri then issued a statement: “Simon Busuttil has gone utterly over the edge. Any contention that I have sought - or received - ‘kickbacks’, commissions, or any other kind of payment while in government is false. I have always maintained this, for it is the truth. I have been subject to a co-ordinated smear campaign for well over a year, but this latest fabrication is nothing short of criminal. Simon Busuttil’s latest publicity stunt shows how desperate he is for power and will not think twice to put at risk the country’s economic future - and our most basic principles of fairness and justice,” he said at the time.
While denying the kickback allegations, Schembri never denied the existence or his knowledge of 17 Black.
Tourism Minister Konrad Mizzi also reacted to Wednesday’s story, insisting that “the allegations and speculations “made by the Times of Malta are a repetition of unfounded allegations and speculation made prior to the June 2017 elections, and Dr Konrad Mizzi unequivocally states: - that there is no connection, direct or otherwise, between Dr Mizzi, his company or trust, and any entity called 17 Black; that the Panamanian company Hearnville Inc. held no bank account and received no money from any source.”
“Minister Konrad Mizzi recently answered questions by journalists from The Daphne Project, in a frank and open manner, and has clearly stated that he: - does not know an Azeri national identified by them as having made a payment in favour of 17 Black; has no knowledge of a payment allegedly made by “Orion Engineering Group” to 17 Black.”
“An independent audit into Dr Mizzi’s trust and company structure was completed by an international audit firm which 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. The audited financial statements speak for themselves. All the facts are contained therein. They confirm that the structure is solely intended as a family trust, that there have been no trading activities undertaken by both Rotorua Trust and its fully owned subsidiary Hearnville Inc. and that no bank accounts were held by the trust and company,” the statement said.