[WATCH] ‘Mizzi’s, Schembri’s reasoning for Dubai bank accounts proves corruption’ – Busuttil

'Mizzi's, Schembri’s reasoning for Dubai bank accounts proves corruption' - Busuttil

The explanations granted by energy and health minister Konrad Mizzi and OPM chief of staff Keith Schembri for trying to set up bank accounts to link to their Panamanian offshore companies prove their intentions to hide money obtained through bribery or corruption, PN leader Simon Busuttil claimed.

An unprecedented series of leaks of financial data -from Mossack Fonseca - reveals that the Panamanian law firm had voiced concern to Nexia BT – its agent in Malta – over Mizzi’s and Schembri’s intent to open bank accounts in Dubai.

In an email, Mossack Fonseca warned that Mizzi and Schembri were both politically exposed and sought more information on what the companies would do “as the reference to management consultancy and brokerage does not explain this”.

“What sort of brokerage services would a serving minister and chief of staff carry out if not bribery or corruption?” Busuttil questioned at a press conference outside Parliament. “Perhaps secret kickbacks earned through the sale of the BWSC power station, the sale of citizenship scheme, the sale of three public hospitals, the procurement of oil and gas, and the sale of Algerian visas?”

He recounted how Mizzi had gone through great lengths in recent weeks to insist that his Panamanian company did not have any bank accounts.

“We now know that this was not due to their lack of trying, but because the banks had refused to open the accounts for them,” he said. “Thanks to the leaks, we know that the banks had wanted assurances that the funds settled were not subject to corruption risk and that they had come from income generated prior to their political appointments. Those assurances were not met.”

Busuttil also questioned why Schembri had already owned a company in the British Virgin Islands before setting up a company in Panama.

“Is it possible that he had opened the company as a front for somebody else?” he asked. “There are no words to describe the gravity of these revelations, and it is clear as day now that there are heavy shadows of corruption cast over Castille.”

He reiterated his long-standing call for Muscat to either sack Mizzi and Schembri “in the national interest” or resign as prime minister.

“Muscat’s resignation does not necessarily have to mean an early election,” he said. “The Labour Party can clear out the dirt and elect another prime minister from amongst them.”

He did not rule out tabling a motion of censure against Mizzi in the future, but warned that such a move would be likely to fail.

“We rule out nothing, but the Prime Minister should take the necessary action without requiring a no confidence motion to be tabled in Parliament,” he said. “The Prime Minister enjoys a significant parliamentary majority, so the chance is high that such a motion will fail.”

He noted that Iceland’s prime minister Sigmundur Gunnlaugsson is already facing a no confidence vote, while Ukraine president Petro Poroshenko is facing impeachment – after the names emerged in the Panama Papers.

“Muscat has known about Mizzi’s and Schembri’s involvement for seven weeks now but has yet to take any action,” he said. “Now their names have been published for the world to see side by side with relatives of Azerbaijani dictator Ilham Aliyev, friends of former Libyan dictator Muammar Gaddafi, people close to former Egyptian dictator Hosni Mubarak, and people close to Syrian dictator Bashar al-Assad.”

He also warned that the revelations will weaken Malta’s hand during its ongoing negotiations with the European Commission over proposed anti-tax avoidance measures.

“We have built our tax system from the ground up, but now the government will try and defend it to the European Commission and risk being questioned whether it is being used for Konrad Mizzi to hide his money.”