A government minister cannot have a company in Panama - the jurisdiction of choice for tax evaders and money launderers. You don’t set up a company in Panama unless you have something to hide. The confirmed and uncontested facts in this case are sufficiently damning on their own merit. And yet, the Prime Minister has stubbornly persisted to defend the indefensible – inevitably (and understandably) raising questions about the extent of his complicity in what is undeniably a shocking state of affairs.
In reputable jurisdictions it is understood that politicians are associated with a high risk for money laundering. Politicians are in positions of power and influence, making them more susceptible to accepting bribes and kickbacks. EU legislation has continuously sought to mitigate this risk through the Anti-Money Laundering Directives. Politically Exposed Persons (PEPs) must be treated differently in good standing jurisdictions.
Readers working in banking or financial services will understand exactly what I am talking about. In dealing with PEPs, financial institutions must carry out enhanced due diligence and monitor the customer very closely. Deposits and fund transfers are scrutinised and sources of funds and wealth must be verified.
Rather than subjecting his transactions to the aforementioned scrutiny (a legal obligation in reputable jurisdictions), Minister Mizzi decided to set up shop in Panama – a blacklisted jurisdiction well known for its watertight secrecy and a hub for money laundering activities. Mizzi has been responsible for every major multi-million deal this government has negotiated and concluded: from the partial sale of Enemalta to the deals with Electrogas and fuel purchasing with Azeri public corporation SOCAR.
These deals have been less than transparent; suffice it to say that not a single contract finalized under Mizzi’s watch has been published. Furthermore, the partners in the said deals included entities and governments that are surely not beyond reproach.
Konrad Mizzi declared nothing. He admitted to having a trust in New Zealand only after Daphne Caruana Galizia revealed it. Hoping that his revelation would stop at that, he made no mention of the company in Panama. He successively admitted and confirmed the existence of the company in Panama only after Caruana Galizia revealed that too. You would have to be completely delusional to think he ever had any intention of declaring secret companies and trusts in top-secret jurisdictions had Caruana Galizia not revealed them first.
It has later been confirmed that the Prime Minister’s Chief of Staff, Keith Schembri, has an identical set-up. If this was done at the same time and by the same advisors at the time sensitive negotiations were ongoing in Azerbaijan, as is being alleged, then it really is game over. While noting that at the time of writing these allegations have not been confirmed, tellingly neither have they been denied.
Konrad Mizzi was grilled by the press following his election to deputy leader of the Labour Party. He said he declared the trust at the first available opportunity. Yeah right.
He did not know the name of the Panamanian company because it was “too technical” to remember. ‘Hearnville Inc’ is not exactly a mouthful.
And he included all this information in the draft declaration of assets that he showed to the Prime Minister some weeks ago – routinely, as one does, many weeks before it is due.
The company holds no assets. But will hold assets, eventually. What assets? Not the assets declared in his declaration of assets, surely? There isn’t anything trust-worthy there.
And as far as paying taxes on these assets – well, he has assured us that he will pay taxes in Malta when he declares dividends. Wonderful news - we should just take his word for it then.
With the current set-up Konrad Mizzi’s word is all we can ever have.
What has been confirmed thus far is more than enough to warrant Konrad Mizzi’s resignation and a criminal investigation. If the connection between Mizzi’s and Schembri’s set-ups is confirmed such investigation would necessarily have to extend to OPM and the Prime Minister himself. Regrettably, due to Panama’s commitment to non-disclosure and secrecy we will most likely never know the whole truth.
Having a Minister and (worse) a Prime Minister of a sovereign EU Member State claiming that an offshore company set up in Panama raises no eyebrows as long as it’s declared is completely unacceptable. Prime Minister - your time to smell the coffee is up.
I will be at the national protest against corruption on Sunday. I appeal to genuine readers who believe that our country deserves better to join me.