‘I understand people’s sentiment on Panama Papers’ – Joseph Muscat

The Prime Minister says he understands people’s anger and discomfort at Konrad Mizzi’s offshore set-up, but that he will only take a decision on his fate ‘with the facts in hand’

Joseph Muscat
Joseph Muscat

Prime Minister Joseph Muscat has dispelled any similarities between the recent resignation of the Icelandic prime minister and the effects of the Panama Papers revelations in Malta, which have confirmed the offshore companies and trusts held by both energy minister Konrad Mizzi and chief of staff Keith Schembri in Panama and New Zealand.

Sigmundur Gunnlaugsson offered his resignation amid a controversy over his offshore holdings, which had been undeclared until they were leaked in the Panama Papers on Sunday.

“It was a company that held millions which he had not declared,” Muscat said, while conceding that Mizzi had political responsibility to contend with but described his chief of staff Keith Schembri as an employee of the State.

“We have to continued to listen to the people, and understanding their sentiment. I do listen, consider it, and decisions are taken collectively to reflect that sentiment,” Muscat in an interview by One TV current affairs host Ramona Attard.

Muscat dispelled claims of tensions within the Labour parliamentary group reported in the media, which said that four senior ministers have suggested that Konrad Mizzi should resign for opening an offshore company in Panama.

“We don’t need to enter into a siege mentality, we need to listen to what people say, and to the social partners. I found an interesting convergence of ideas today, and people know that they won’t earn their living on protests but on sustained economic growth.”

Muscat was adamant in saying that Konrad Mizzi was not hiding his offshore interests and that he declared his offshore trust – although the minister never declared his offshore company in Panama when he had the opportunity.

Opposition leader Simon Busuttil will now lead a second protest on Sunday, after first holding a demonstration in March against what he said was corruption over revelations that Mizzi held an offshore company.

But Muscat insisted that he wanted to address the matter “with facts in hand and serenely.”

“I want the people to understand that we get it. I am not happy with the Panama Papers situation…. Had no Maltese national been mentioned – and there were more than a hundred companies related to Malta that were, the leaks were putting pressure on financial centres all over the world.”

He said Malta now faced challenges from the European Commission over its financial centre, and said that the Panama Papers revelations had strengthened its hand in enforcing laws mean to curb tax avoidance.

He also said that his government was unimpeachable on economic growth and social reforms, and that Opposition leader Simon Busuttil would have spent “five years of mudslinging” when the next elections come around.

“Simon Busuttil cannot stomach the fact that Malta’s first EU presidency will be with a Labour government at the helm…

“The Maltese don’t like their country being hauled over the coals in the international arena – and that’s what happened with the allegations the Opposition made on the Algerian visas and on the Individual Investor Programme,” Muscat said.

He also challenged Busuttil to suspend a loans scheme the PN launched, calling for loans of €10,000 payable over 10 years at an interest rate of 4%. “These loans are devised in such a manner to fall out of the party financing law, so that the PN does not publish the names of who loans the party any money. If he means just 10% of what he says on transparency, Busuttil should publish the names of those who are loaning him money.”