Nationalist MEP David Casa has again written to the the Association of Chartered Certified Accountants (ACCA) asking it to launch an investigation into wrongdoings by Nexia BT’s Karl Cini.
In his letter to the ACCA’s head of EU Affairs, Cecile Bonino, Casa says the evidence against Cini is “overwhelming”, and expresses dismay that the association did not launch an investigation months ago, when he first reported Cini.
The Egrant inquiry, published in full in December, had called on the authorities to launch an investigation into Cini, a partner at Nexia BT, on alleged perjury. The inquiring magistrate had recommended similar investigations with regard to former FIAU investigator Jonathan Ferris and Pilatus Bank whistle-blower Maria Efimova.
The report mentioned that Cini, in his testimony, did not mention all the companies he opened in BVI, as well as other contradicting information he had provided.
Cini had insisted that all concerns highlighted in the inquiry report had been “clarified” by the authorities, and that discrepancies were “due to misunderstandings during the magisterial inquiry."
Cini and Brian Tonna had been instrumental in the setting up of Konrad Mizzi and Keith Schembri’s Panama companies and New Zealand trusts, as well as Egrant itself.
‘Overwhelming evidence’
In his letter to Bonino, Casa referred to his first letter to ACCA, sent in 2018, in which he had drew the association’s attention to “evidence of involvement in criminal activity in relation to Karl Cini, under circumstances that warranted the triggering of an investigation as catered for under the ACCA’s internal procedures.”
In that letter, he had pointed out that ACCA members are required to observe proper standards of professional conduct and in those instances where they do not, the ACCA is bound to investigate and take disciplinary action.
The investigation resulted in no action being taken against Cini, Casa said, but the situation has since changed.
“Mr Cini’s involvement in illegal practices and matters that violate the very principles the ACCA is duty-bound to uphold was confirmed with the full publication of the Egrant Inquiry.
Karl Cini is shown to be the mastermind behind money laundering structures created for persons with illicit intent,” he wrote.
“Under the cover of Nexia BT, the Mossack Fonseca agents who have been at the centre of the Panama Papers scandal and all it pertained to in Malta, Karl Cini has abused his position and made a mockery of all rules and regulations put in place to curtail money laundering and financial crimes. This despite Mr Cini ironically being the Money Laundering Reporting Officer for Nexia BT whilst doing so.”
Link to Daphne’s assassination
Casa added that, “the financial structures created by Karl Cini are at the very centre of the motive behind the assassination of investigative journalist Daphne Caruana Galizia.”
The journalist had reported extensively on Cini’s involvement in the Panama Papers scandal he said.
“The evidence of wrongdoing is overwhelming. It is unfortunate that under these circumstances the ACCA has been so ineffective in protecting its reputation and that of its members. Whilst acknowledging that it is the law courts that establish criminal culpability, the ACCA has a responsibility to stamp out wrongdoing, dishonesty and non-adherence to standards of professional conduct.”
Casa said, “the continued membership of Karl Cini within the ACCA is a disservice to its other members, accredited accountancy professionals and the industry as a whole. I call on you to take action as soon as possible, including through the relaunching of investigative proceedings.”
It is already years late, he said, “but it is evident that the consequences are far reaching and will continue to be felt extensively unless action is taken.”
“Rescinding Karl Cini’s ACCA membership and taking exhaustive measures to rectify this situation would be a step toward protecting the reputation and the integrity of this industry,” the MEP concluded.
Earlier this month, Casa blasted the Accountancy Board for failing to revoke the warrants of Brian Tonna and Karl Cini, whose advisory services company received over €1 million in government contracts.
“Regulatory bodies choosing to protect criminals rather than do their duty are part of the reason we find ourselves in this mess today,” Mr Casa said in the strongly worded letter.
The Board had said it would wait for the outcome of pending magisterial inquiries. It said that matters relating to investigations it may conduct were confidential and it could not, at this stage, give any information confirming or denying any measures relating to matters he raised.