The Malta Independent 12 August 2026, Wednesday
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Shame on Muscat and Labour!

Alfred Mangion Thursday, 23 February 2017, 08:47 Last update: about 10 years ago

This time last year it was revealed that top brass in Castille namely Konrad Mizzi, now supposedly Minister without Portfolio, and Joseph Muscat’s own Chief of Staff, Keith Schembri are embroiled in the international Panamagate scandal. This scandal, coupled with Muscat’s non-action in this respect, tarnished Malta’s name and will do so for a long time. One year after the revelations, a number of mysteries still shroud this scandal locally.

‘In Panama they trust’

Time will neither forgive nor forget. Panamagate scandal will haunt Joseph Muscat and his Labour Party for many years. Almost four years into a Labour administration and one year after Panamagate was shockingly revealed, Muscat’s government drowns in one of the worst possible scandals in 30 years. The involvement of two of Muscat’s closest colleagues and allies, Minister Mizzi and Muscat’s Chief of Staff Schembri, makes this scandal more damning for Muscat and Labour. Notwithstanding one of Muscat’s pre-election battlecries “We will fight corruption”, the Panamagate scandal is symptomatic of the scandals and the stink of corruption in the midst of power in Castille.

The three secret companies (more details below) opened in Panama and mentioned in the scandal, one on behalf of Konrad Mizzi, one on behalf of Keith Schembri and one on behalf of a mysterious owner, were opened, it is said, within days of Joseph Muscat being sworn in as Prime Minister in March 2013. Unashamedly, those involved in this scandal had just taken up high office in Government administration. It is highly improbable that the decision to open the accounts was taken just then.

Malta was shocked that Muscat defended Schembri and Mizzi in this scandal. He maintains they committed no wrong in opening secret companies once they declared them to the local authorities. But did they? And when, before or after the revelations? Corroborating the various lies about the scandal to cover up for the two, makes Muscat an accomplice. After the scandal was revealed, Muscat declared he was disappointed and would react to the outcry of local public opinion.

Muscat’s reaction was weak and spineless. Cosmetically, in April, he removed Mizzi from Minister for Health and Energy but kept him as Minister without Portfolio in Castille and responsible for energy. As for Schembri, Muscat made no moves, claiming that Schembri was not an elected official. Muscat keeps Schembri, the Government’s most senior person of trust, in command notwithstanding Schembri’s involvement in an international scandal of such magnitude. All this is baffling and beyond comprehension especially when one recalls how Muscat booted out Anglu Farrugia (before the election), Godfrey Farrugia, Manwel Mallia and Michael Falzon when it suited him.

 

It is intriguing that a short while after Konrad Mizzi was elected by the Labour delegates as their Party’s deputy leader, Muscat decided that Mizzi’s involvement in the Panama scandal warranted his removal from the deputy leadership. However Muscat did not ditch him from any ministerial responsibility. For Muscat the Party appears to be more important than the country.

Let’s fast forward nine months from when Muscat farcically “removed” Konrad Mizzi from Minister for Health and Energy and appointed him Minister without Portfolio. Muscat, now pompously heading the Presidency of the Council of the European Union, nominated “the disgraced” Mizzi to lead the European Ministers for Energy. What an insult to us and to our European partners! Questioned about this, Muscat explained that since energy falls under the OPM’s portfolio, Mizzi falls under his direct supervision as he is Minister without Portfolio in his Office. It is beyond belief that Muscat supervises Mizzi involved in a scandal instead of removing him outright.

Panama for the gods, taxes for us

In the midst of the Panamagate scandal, while big shots in Castille open secret companies in Panama and elsewhere, the honest citizen is adversely affected. Muscat’s Labour government is making the taxpayer fork out more (such as the 4c per litre increase in the price of fuel). Muscat enforces two different laws: one for the gods and one for the animals.

Taxes have to make good for this scandal and for many others which stink of corruption with which Muscat’s Labour government has since 2013 been allegedly riddled and haunted. These scandals are detrimental to Malta’s once excellent international reputation strengthened by previous Nationalist administrations.

Who owns Egrant Inc.?

Panamagate revealed that three secret companies were opened namely Hearnville Inc (Konrad Mizzi), Tillgate Inc (Keith Schembri) and Egrant Inc. The latter is shrouded in mystery. The owner is unknown. and an unorthodox method was used to open it via Skype. It is curious and puzzling why the local competent authorities have not so far appeared to have started investigating the company’s ownership.

It is stranger than fiction and even more mysterious why Joseph Muscat, who before the 2013 election pontificated that he who does not fight corruption when in power is himself corrupt, has not instructed this company to be investigated. What is keeping him back? Is he aware of the owner’s identity and is protecting him? If so, why and who is the owner who deserves such protection? The whole truth will eventually surface and the owner of Egrant Inc. will face the Nation’s condemnation.

Local investigators could have requested information regarding ownership of Egrant Inc. from the owners of Nexia BT who opened the companies on behalf of the owners. Does it not confuse the investigators that while Schembri’s and Mizzi’s companies were opened through emails, the ownership of Egrant Inc. was advised through Skype to protect the owner’s identity? Who is this owner who deserves such high profile protection? Could he/she be someone even higher than Konrad Mizzi and/or Keith Schembri? The Maltese keep speculating.

Joseph Muscat, who prior to the election promised transparency, accountability and to fight corruption, should be eager to know the ownership of Egrant Inc. He should act, if for nothing else, to stop speculation which is rife and which could lead to conclusions, which could be mistaken but could also be correct. Muscat’s silence and lack of action speaks volumes and leads to more speculation and to conclusions.

What a pity!

Joseph Muscat should take the bull by the horns if he is capable and willing. Unless he shows that he is not weak and/or that he is not being held hostage by someone or that he is not an accomplice, and until such time as he demonstrates he still holds moral authority, the Maltese will continue to speculate and reach their own conclusions regarding the ownership of Egrant Inc.

What a pity that Malta is run by a Labour Government led by a Prime Minister who, notwithstanding this international scandal, shamelessly keeps in post two disgraced very senior members within his administration. This puts Malta in the international limelight for the wrong reasons. It is of no surprise that Malta lost 10 places in a period of one year in the Corruption Index of Transparency International.

The Maltese are fed up of Muscat’s empty assurances that corruption is being tackled when it is not. I hope and pray that, come next election, the sooner the better for Malta, the electorate will vividly see through all this and take the decision the country deserves – vote resoundingly out of office this shameless and disgraceful Labour administration led by Joseph Muscat. I convulse realising what Muscat and Labour have reduced my country, our country, to!

 

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