The Labour government and all those associated with it fail to make a distinction between owning a company in Panama, like Konrad Mizzi and Keith Schembri do, and offering professional services in the financial sector, PN leader Simon Busuttil said today.
Addressing a media conference, Dr Busuttil said that the Panama Papers revealed yesterday confirmed that the OPM chief of staff, Keith Schembri, has a company in Panama and one in the British Virgin Islands. It had already been revealed that Konrad Mizzi had a company in Panama.
These companies were opened in their own name, while they occupied a powerful position in the government, and in which they were to deposit brokerage money. They also bound themselves to deposit €1 million a year in a bank account, Dr Busuttil said.
Nexi BT opened three companies in one week: Egrant, which opened on 8 July 2013, Hearnville, on 9 July 2013 and Tillgate Inc on 15 July 2013. The latter two belong to Mizzi and Schembri and the question remains as to who is the owner of the third company.
The implications here are serious, Dr Busuttil said, urging the authorities to investigate to find out who the owner of the third company is.
The list issued yesterday does not include a PN MP or official as a company owner in Panama or BVI, neither directly nor indirectly. The only two politicians mentioned are Konrad Mizzi and Keith Schembri.
Dr Busuttil said that former PN minister Ninu Zammit is mentioned in the Panama Papers as he has been mentioned in the Swiss Leaks last year, following which Mr Zammit has been immediately suspended.
The Panama Papers also include a number of legal and audit companies that offer their professional advice in the financial services sector. PN MP Francis Zammit Dimech was part of one such firm, and is no longer part of it, but he never had his own company in Panama. The company in which PN president Ann Fenech is involved, Fenlex, is also mentioned, and it has been offering such services for many years. There is a great difference between why Dr Zammit Dimech and Dr Fenech were mentioned – their legal services – and why a minister, Konrad Mizzi, was mentioned – his opening of a company in Panama.
One audit company mentioned in the Panama Papers is Nexia BT of Brian Tonna, who opened up companies for Konrad Mizzi, Keith Schembri and a third person. It is clear that Brian Tonna has a conflict of interest because he has an office at Castille while he is acting as a financial consultant for Mizzi and Schembri. Tonna should be removed from Castille, Dr Busuttil said.
Now that the Panama Papers have been revealed, the Prime Minister has no excuse but to take action.
What the PN is expecting is that Joseph Muscat immediately dismisses Mizzi and Schembri, a call that the PN has been making ever since the scandal erupted in February.
It is unacceptable, the PN leader said, that a European Union country, which will hold the EU presidency next year, keep a minister and chief of staff in place in spite of the fact that they opened companies in Panama while holding office. The more the PM takes to understand this issue, the more harm will be caused to Malta.
The PN also expected that the authorities investigate the implications that surfaced with the Panama Papers to ensure that the laws are being followed. Dr Busuttil made reference specifically to corruption, money laundering, tax declarations and tax evasion, and said that the police, the Inland Revenue Commissioner and the Financial Investigative Analysis Unit should investigate.
He said the PN does not recognize the authority and integrity of the decisions taken by Konrad Mizzi and Keith Schembri and expected that what they decided is immediately investigated.
The Prime Minister has remained silent on the issue, he said. To mix things up, the Labour Party is trying to put Mizzi and Schembri in the same basket as the PN officials who were mentioned in the Panama Papers as having offered their professional services.
Everybody understands the difference between the two scenarios, he said, except for the Labour Party.