In a strange chain of events, a request by this newspaper to interview embattled Energy and Health Minister Konrad Mizzi has lead to a barrage of legal threats and intimidation against this newspaper.
On Thursday, this newspaper asked Dr Mizzi for a recorded, on the record, interview about new information in our possession concerning the establishment of his much-maligned company in Panama.
This newspaper had wanted to question the Minister directly concerning documentary evidence showing how Dr Mizzi’s company in Panama had been transferred into his New Zealand Trust on 22 July 2015 – the very same day that Gasol sold its entire shareholding in the Electrogas Delimara power station consortium for an undisclosed amount, which, according to financial specialists speaking with this newspaper, would have been valued at tens of millions of euros.
The Minister, however, refused to be interviewed by this newspaper unless we met what would be considered by any independent media house to be outrageous demands, such as providing him beforehand with all the details of the information that we had in our possession.
Needless to say, the Minister’s demands were not met and the interview request, which had also been copied to the Prime Minister personally, was not acceded to. Instead, this newspaper received threats of legal action from the Minister’s secretariat and then from his legal representative Aron Mifsud Bonnici.
Interviewed by this newspaper on 5 March, Dr Mizzi had explained how he had become the ultimate beneficial owner of the Panamanian company, Hearnville Inc, on 2 June 2015 “with the objective to transfer it into the trust. So we took it [Hearnville Inc.] on 2 June and it was transferred into the trust on 22 July, when the shares were transferred to Orion Trust as the trustees of Rotorua Trust.
Mr Mizzi went on to explain that on 21 July 2015, the day before the company was transferred from ATC Administrators to Dr Mizzi’s trust, and the day before Gasol sold its shareholding in Electrogas, there was a board meeting to transfer the shares to Orion Trust, his trust’s trustees.
This newspaper had also sought to question the Minister about the owners of the Panamanian-registered company ATC Administrators Inc. – the company that had held Dr Mizzi’s own Panamanian company, Hearnville Inc, from 2 June 2015 up to 21 July 2015 until it had been transferred into his New Zealand trust. This newspaper had also wanted to ascertain from the minister why, exactly, ATC Administrators Inc. had been holding the Hearnville Inc. company for the period between 2 June 2015 and 22 July 2015, as well as why, exactly, it had been transferred to his New Zealand Trust on the exact date that Gasol had sold its Electrogas shareholding.
If the Minister, as opposed to having answered these questions following this newspaper’s perfectly legitimate request to be interviewed about his Panamanian company, chooses to issue a right of reply to this story, he is expected to answer all the questions being raised here.
Dr Mizzi, in fact, had the Panamanian company transferred to his trust on the same day, 22 July 2015, on which Gasol cashed in its Electrogas shareholding after selling it to the remaining three partners: Azerbaijani state oil and gas company SOCAR, Siemens and the Maltese GEM Holdings headed by the Gasan Group and the Tumas Group.
Gasol, at least during it operative period in Malta, was majority owned and controlled by a Seychelles-based company, African Gas Development Corporation Ltd.
Although this newspaper had not yet revealed any of the information it had sourced, the Minister had demanded that this newspaper provided him “immediately” with: “details of the new information you claim to have obtained, including information/background to verify its authenticity; a list of all questions and allegations, such questions and allegations being fully particularised and placed in their appropriate context; and the date on which you intend to publish any story.”
This was followed later in the day by letters from Dr Mifsud Bonnici, who took exception to the fact that we requested a recorded interview, a perfectly legitimate request as far as media norms are concerned.
Dr Mifsud Bonnici wrote: “The fact that you appear to be insisting on recording an interview with our client suggests that you intend to ambush him with information in the hope that he gives you an ill-considered response. Our client has nothing to hide and, as he has already told you, welcomes legitimate, accurate and fair criticism and inquiry. He does not, however, welcome what appears to be a thinly veiled attempt to ambush him. Compelling a subject of a story to attend an interview to exercise his right of reply is, on any view, wildly at odds with any notion of responsible journalism.
“In the circumstances, we repeat our client’s reasonable request that you provide him with the following information forthwith:
“1) details of the new information you claim to have obtained, including the steps you have taken to verify its authenticity; and
“2) a list of all questions and allegations you wish to put to our client prior to publication, such questions and allegations being fully particularised and placed in their appropriate context.”
Timings remain unexplained
As Dr Mizzi steadfastly chose to not make himself available for an interview unless his unreasonable demands were met, there are a number of unanswered questions. Here are the facts.
The date on which Hearnville Inc, the Panamanian “shell” company, was put in the name of Dr Mizzi’s trust from its previous owner, ATC Administrators Inc, was on the same day, 22 July 2015, as the exit of Gasol plc from the Electrogas consortium in Malta, and within a week from the finalisation of the government’s financing guarantees to the consortium.
Electrogas is the Azeri-backed consortium responsible for the construction and development of a new 200MW Siemens LNG power station and an 18-year power purchase and gas supply agreement (PPGSA) with Enemalta.
Gasol transferred its 30 per cent shareholding in the Electrogas consortium to the remaining three partners on 22 July 2015, a share transfer document filed on 28 July 2015 with the Malta Financial Services Authority shows.
After the share transfer, SOCAR and Siemens increased their stakes in Electrogas from 20 per cent to 33 per cent each, with their Maltese partner GEM Holdings increasing its stake from 30 per cent to 33 per cent, so that all partners today hold an equal stake in the shareholding of Electrogas.
Meanwhile, according to a letter shown to this newsroom by Dr Mizzi and published by this paper on 6 March 2016, Dr Mizzi acquired his Panamanian company, Hearnville Inc, from ATC Administrators Inc, who held the company in their name and for his exclusive benefit from 2 June to 21 July 2015, confirming that the company passed in his name on 22 July 2015.
This coincidence alones creates further speculation as to why Dr Mizzi acquired a company in Panama in the first place, one of the world’s most secretive corporate and financial jurisdictions – answers that only Dr Mizzi is in a position to furnish and which explains our request for an urgent interview.
According to journalist Daphne Caruana Galizia, the Prime Minister’s Chief of Staff Keith Schembri also holds a Panamanian company, which has so far remained unnamed, and which he allegedly purchased at the same time that Dr Mizzi purchased his. Both Panamanian companies were allegedly opened following advice given by Nexia BT (Malta). While Dr Mizzi has disclosed the name of his Panamanian company and papers that show the circumstances of how it came into the trust he created in New Zealand, Mr Schembri has so far refused to disclose any details of the allegations made in his respect.
Minister finally replies
Minister Konrad Mizzi this morning sent this as a Right of Reply:
"The headline and article is smear journalism of the worst kind. The Malta Independent of Sunday chose to depict two distinct occurrences which are completely unrelated. It is evident that the intent is to invite the reader to infer wrongdoing without making direct allegations.
"There is absolutely no relation or connection between the establishment of Dr Mizzi’s declared trust and related structures and the sale of Gasol shares to the other shareholders of Electrogas Malta.
"Dr Mizzi has also subjected himself to a full tax audit which shall show that all allegations levelled at him over the past weeks are baseless.”
DOI statement
In a later statement broadcast by DOI, Dr Mizzi returned to the attack:
"Reference is made to the fictitious and malicious story reported on the front page of The Malta Independent on Sunday. The Malta Independent on Sunday chose to combine two distinct occurrences which are completely unrelated. It is evident that the intent is to invite the reader to infer wrongdoing without making direct allegations.
"The absolute lack of evidence or attempt by the Independent to verify or otherwise substantiate its contrived assertions shows the bad faith of the newspaper and its method of pursuing the story.
"This bad faith was immediately apparent. The newspaper sought a recorded interview to purportedly ‘present documented evidence’ on camera. The sole aim of the paper was to ambush Dr Mizzi and to conceitedly attempt to apportion guilt by association. This is nothing short of gutter journalism which serves no purpose in furthering the public interest.
"If the Malta Independent was thoroughly convinced of the strength of its purported evidence, it should not have had any qualms with making such facts public and known to its interviewee. The purely speculative story it chose to report today is proof in itself that The Malta Independent had no interest in seeking the truth but simply to sensationalize unrelated and distinct events through a forced and artificial connection.
"Simon Busuttil's piggy-backing on the story during his Sunday morning speech shows that the Independent and PN blogger Daphne Caruana Galizia who writes for the same paper are acting in tandem with the Opposition in a mudslinging exercise.
"Dr Mizzi has put himself to a full tax audit which shall show that such insuations are baseless and malicious.
"Dr Mizzi re-iterates that he welcomes legitimate, accurate and fair criticism and inquiry and respects the media's right to freedom of expression and the freedom of the media more generally. However, free speech is only informative if accurate. It is not in the public interest for the public to be misled."