Schembri’s Kasco group ‘may be tasked with servicing’ not supplying Crane Currency machinery

The prime minister’s chief of staff Keith Schembri has declared that his business group Kasco will not be supplying any machinery to Crane Currency, the Boston banknote printers that will be investing €100 million in a Malta facility.

Schembri, whose Kasco Group is an agent for currency printing machinery, declared that no company within the Kasco Group will be supplying Crane Currency with any machinery.

His comments follow those of Prime Minister Joseph Muscat, who was at pains to play down a potential conflict of interest for Schembri – who facilitated the Crane Currency deal – if his company had to become a supplier of the banknote printer.

“Having knowledge of the industry, I can confirm that currency printing machinery requires strict security features and specification and therefore such machinery is not acquired through third parties but directly from the manufacturer,” Schembri said in a statement.

But Schembri however said that if Crane Currency do ultimately procure Komori machinery, Kasco Group as the agents of Komori for the last eight years may be tasked with the machinery’s servicing, “as has been the case with another company in the currency industry in Malta,” Schembri said – ostensibly referring to the De La Rue facility in Malta.

“There is no doubt that being such an important international commercial entity, Crane Currency will be taking its decision based on what makes commercial sense for them,” Schembri continued.

The chief of staff, whose name was mentioned in connection with the Panama Papers after it was revealed that he and former energy minister Konrad Mizzi had set up two Panama offshore firms for their offshore trusts, said he was “proud of [his] involvement in bringing investments from all quarters of the globe”.

“Despite all puerile attacks on me, I shall remain at the forefront of all efforts to attract investments to Malta that create quality work for Maltese families. It’s a sad day for the country when Simon Busuttil and his ‘spokespersons’ are once again hell-bent on attacking important investments that shall benefit the country as a whole.”

Prime Minister's comments

PM sees no conflict if chief of staff’s company benefits from Crane investment

Earlier today Prime Minister Joseph Muscat made a stunning declaration to the press, saying he would have no objection if Schembri’s business group bids for the supply of printing machinery for Crane Currency.

Schembri was instrumental in securing the €100 million investment that will create some 300 jobs.

“No I don’t have a clue,” Muscat said when asked whether Kasco Technical, an official distributor for Komori printing machines, would be a Crane supplier.

“Why shouldn’t he?” Muscat added, when pressed on the conflict of interest Schembri would have, having played a part in facilitating the Crane Currency investment.

“If it’s a private company and wins a bid, why should it be disqualified,” he asked, referring to the Kasco Group.

“I totally disagree… had it been Schembri’s company taking over government business [would be an issue]... but if you expect a private sector company being disqualified… I think this is just an obsession people have with Schembri.

“I thanked him for his role in facilitating the investment. The negotiations and conditions were carried out between Malta Enterprise and Crane Currency. What Schembri did was to make sure things got done.”

Schembri’s Kasco Group is one of the island’s main paper merchant companies, having supplied Allied Newspapers with its state-of-the-art printing press for its company Progress Press.

Keith Schembri resigned his company directorships upon being appointed chief of staff in March 2013.

PN response

The PN said it had been calling for Schembri’s dismissal for a long time, not only for the secret companies he set up in Panama after being appointed chief of staff, but also because of the large conflicts of interest between his role at the OPM and his private business.

In response, the Office of the Prime Minister (OPM) said that “the latest bitter political attack on a $100 million American investment which will create 300 productive, quality jobs, is nothing but another desperate attempt to foil quality jobs from coming to Malta”.