Prime Minister, Dr Joseph Muscat, said in Parliament today if he finds out that there are millions of euros in the Panama companies owned by Minister Konrad Mizzi and OPM chief of staff Keith Schembri that the Opposition Leader is alleging, he will remove the people responsible immediately.
He was making a ministerial statement in reaction to the Panama Papers revealed by the International Consortium of Investigative Journalists. Among the names mentioned was that of the Minister for Energy and Health, Dr Konrad Mizzi, after he was found to have opened a company in Panama which he claimed was for consultancy and brokerage purposes.
The Prime Minister added that his displeasure is that "the scandal is taking away attention of all the positive things which this government has done." It was also said that the government's priority is to keep the financial services sector strong and even make it stronger.
Dr Muscat spoke about the implications that whoever opens trusts and companies do it for tax evasion reasons are real. There will be a lot more pressure much like in the time of Swissleaks, Luxleaks and Offshoreleaks.
There are 676 companies registered in Panama from Malta, according to the ICIJ report. The government has asked the ICIJ to provide all information about all Maltese people involved in Panama. All cases will be investigated as necessary. These are exactly the same steps which taken after Swissleaks.
What was said in the report about Dr Mizzi shows that everything he declared in previous statements made since the scandal erupted is true. A full independent audit by the commissioner of internal taxes will carry on as planned to ensure transparency. The same audit will be going on to investigate the Office of the Prime Minister's Chief of Staff, Keith Schembri.
In his reaction, Opposition leader, Simon Busuttil said that "it is surreal that the Prime Minister comes here and speaks about transparency. We don't believe you! How are you not embarrassed to lie to all of us like this? You have known for 7 weeks that they have secret companies, then you come here and speak about transparency?"
He went on to add that people are "angry" about all the corruption which is causing great harm to the financial sector. Addressing the Prime Minister, Dr Busuttil said, "You have broken the negotiating position of this country."
Dr Busuttil then accused the Prime Minister of lying to the public repeatedly, specifically after saying that action would be taken if anyone had been mentioned after Swissleaks when Dr Mizzi and Mr Schembri have not even been suspended, let alone removed as was said a few minutes prior.
It was said that both Dr Muscat and Dr Mizzi have been "running and lying from media for the last seven weeks."
Dr Mizzi had lied to the Internal Tax Commissioner because he didn't declare his trust in New Zealand and company in Panama. The opposition leader then accused the Prime Minister of lying when he had said that Dr Mizzi had paid a fine and then "changed the story" saying that he wasn't sure if Dr Mizzi had been sent the fine or not at the time.
Dr Busuttil's tirade continued as he said that Dr Mizzi lied to media saying he had a trust and completely omitting anything about any company in Panama; ending with another accusation saying the despite Dr Mizzi saying he would declare everything, he did so too late.
"The question we have is, why have you not even remotely tried to remove Konrad Mizzi and Keith Schembri? ... The opposition is appealing that you do what is good for the country. Remove Konrad Mizzi and Keith Schembri for the sake of Malta. I appeal to the honourable among the government not to keep associating yourself with corruption."
It was also mentioned by Dr Busuttil that both Dr Mizzi and Mr Schembri attempted to open bank accounts in Dubai and Panama to which Dr Mizzi had initially said he wanted to use to deposit funds from brokerage. Dr Busuttil asked, "What sort of brokerage could a minister do if this was not corruption?"
In his reply, Dr Muscat said that he expected nothing more than hysterical rambling from the Opposition Leader after observing his replies to every newsroom over the last few weeks. Dr Muscat then replied to the corruption by brokerage accusations by telling Dr Busuttil to "ask his colleagues how to make money from brokerage."
Dr Mizzi interjected briefly echoing the Prime Minister's words that the Panama Papers report merely confirmed all his previously declared information, adding that he is still the only Minister in history to subject himself to a complete independent audit. Dr Mizzi also added that it was more than could be said for PN Deputy Leader, Dr Beppe Fenech Adami, who, according to the Minister, completely shied away from the request.
The Energy and Health Minister then added that his company never dealt with money and that the mention of brokerage was standard wording in the trust, not his own, repeating also that the reason behind the trust was to manage his estate.
Regarding the allegations raised about trying to open bank accounts in other countries, Dr Mizzi denied all allegations saying that he never opened or applied to open any bank account.