Meltdown: A nationwide power outage. And the nation’s powers’ outage

Joseph Muscat has lost his chief of staff, and two Cabinet ministers: his administration has crashed.

Resignations: Konrad Mizzi, Keith Schembri, Chris Cardona
Resignations: Konrad Mizzi, Keith Schembri, Chris Cardona

Malta went dark on Tuesday, 26 November, at 3pm.

The national power supply, provided in part by the Electrogas consortium, went on tilt nationwide.

It was only fitting that only a few minutes later, the former energy minister Konrad Mizzi – the brains behind Malta’s power plant revolution that gave Malta cheaper rates in 2013 – announced his resignation from the Cabinet.

Soon after came the resignation – euphemistically termed ‘suspension’ from Cabinet – of economy minister Chris Cardona.

And before that, in the morning Prime Minister Joseph Muscat announced the resignation of his chief of staff, and personal friend, Keith Schembri, architect of Labour’s massive electoral victories of 2013 and 2017.

The meltdown began.

Succinctly put...
Succinctly put...

Only last week, a hitherto-unknown taxi driver and loan shark arrested as part of a money laundering operation, Melvin Theuma, was said to have requested a presidential pardon to spill the beans on the murder of Daphne Caruana Galizia.

Less than 24 hours later, the Tumas magnate Yorgen Fenech – one of the shareholders in the Electrogas consortium – was arrested by police and held as a person of interest in connection with the assassination, as he left the Portomaso harbour at 5:30am on Friday.

Reports yesterday even suggested that Schembri had been in contact with Fenech before his arrest.

When Fenech requested a pardon on Saturday, all hell broke loose.

A parliamentary group meeting of Labour MPs gave Joseph Muscat their vote of confidence on Monday, but strong words were said about the future of Labour with Schembri and Mizzi. That day Mizzi himself was defiant in the face of outright criticism by education minister Evarist Bartolo, standing his ground and insisting he had done nothing wrong and refuting any association with 17 Black, the mysterious Dubai firm whose owner is Yorgen Fenech.

But Schembri was taken in for questioning by police yesterday morning, where police later followed with a search at his villa in the swanky Santa Marija estate in Mellieha.

Police turned up at the villa complex where Keith Schembri lives in Mellieha
Police turned up at the villa complex where Keith Schembri lives in Mellieha

Yesterday, a subdued Joseph Muscat announced that he had met Schembri the night before at his Burmarrad home, and confirmed that his chief of staff had resigned. “I had various discussions with Keith Schembri, and he said he would be resigning in the day. I thank him for the contribution he gave… he had a crucial role, and I thank him for shouldering this burden.”

Muscat said his new chief of staff will be Mark Farrugia.

“I take responsibility for the fact that I have kept him as chief of staff, yes.. he has now decided to move on. It’ a conversation we’ve had for some time… he had signalled to me that it was a matter of time.”

Asked whether he regretted not probing the 17 Black allegations, Muscat shrugged off the questions: “I am criticised for acting like an ‘investigator’… there is an independent probe that has started already… I never turned a blind eye, and what is happening now and last week, with the operation leading to, hopefully, solve the assassination, shows the institutions are working.”

Muscat said he would not step back, and said he would not seek re-election beyond his second term. “My role now is to navigate this time in the best possible manner.”

 “I will keep on taking decisions that I must take for the sake of the country. This country needs stability, and all decisions I will take in the hours and weeks to come must be taken for the sake of the country, to ensure this stability.”

Mizzi and Cardona resign

Mizzi was hounded by the press all day, and despite his defiant stance, it was only after 3pm, as he emerged from a Cabinet meeting at the Auberge de Castille flanked by a handful of MPs and ministers, that he announced he was stepping down.

“In light of the political circumstances, I personally feel that in terms of political responsibility and duty, the right thing for me to do is to step down, to ensure government can continue serenely to govern for the next years, to respect the general sentiment, and support the change that this government will continue to be make. While I have taken this step, there is no association, direct or indirect, with 17 Black, with Mr Fenech – the Electrogas deal was reviewed by the European Commission, the National Audit Office, and due process was followed. In addition to that, I would like to thank people of good will who sent me encouragement over the last few days. I will continue supporting the prime minister.”

Mizzi emerged to the sound of heckles and boos from demonstrators who were setting up a protest, the fourth one in as many days, outside the Office of the Prime Minister. “Out” and “corrupt” were shouted as Mizzi gave his press conference and then walked to Parliament, accompanied by some Cabinet colleagues.

Muscat exited to the same orchestra of damnation, and entered his ministerial vehicle and swiftly driven out of sight.

News that Cardona was ‘suspending’ himself from the Cabinet – a term of resignation that did not imply finality – came soon after. Cardona said in a statement that he was “suspending himself with immediate effect from his position as minister pending the investigations and proceedings going on right now.”

Cardona said the decision was taken following a discussion with the Prime Minister. “Dr Cardona declares that he has absolutely no connection with the case, but after police had asked for further clarifications, he feels duty bound to take this step in the national interest,” the statement said.

Adrian Delia
Adrian Delia

Delia calls for Muscat’s resignation

Opposition leader Adrian Delia called for the Prime Minister’s resignation, insisting Joseph Muscat’s position is no longer tenable.

The Opposition leader said Muscat had in the past asked Manuel Mallia and Michael Falzon to resign from ministers for mistakes done by people in their secretariats, and by the same yardstick he should be leaving now after Keith Schembri’s questioning by the police.

“Joseph Muscat’s capacity to decide for the country has been compromised. He should leave for the good of the country and the people,” Delia said in his clearest message yet.

All men resigning yesterday had been the target of Daphne Caruana Galizia’s journalism. Mizzi and Schembri were outed in the Panama Papers reveal, but they strongly denied any wrongdoing because their companies had not received any monies. Yet the documents revealed that the two men and their audit firm Nexia BT had actively scouted for international banks.

Cardona, who was questioned by police but not under caution, had been accused by Caruana Galizia of having been inside a Germany brothel while on official duty. The story led to a garnishee order against her, and then libel cases which Cardona and the Caruana Galizia heirs did not pursue months down the line.

Her bigger ‘reveal’ – a photo collage – was the cryptic 17 Black post of February 2017: “A company in Dubai”, together with the photos of Schembri, Mizzi, Muscat, and the disgraced PN minister John Dalli. Nobody knew it was Yorgen Fenech’s then, even though Caruana Galizia had posted a comment referencing him in her own comments board. It was a year after her assassination in 2018, that the Daphne Project forcefully connected Fenech to 17 Black, and emails showing that the Panama companies – Hearnville and Tillgate – were “target clients” of 17 Black.

The cryptic blog Daphne Caruana Galizia put up in February 2017, which was the first time that 17 Black was mentioned
The cryptic blog Daphne Caruana Galizia put up in February 2017, which was the first time that 17 Black was mentioned

Despite all the clear evidence that Mizzi and Schembri had schemed to have thousands in payments funnelled to their offshore companies and trusts in New Zealand, Joseph Muscat stood by his men.

By sticking to legalistic interpretations, Muscat shielded the two men and used his presidential aura to shore up his enormous majority. When he was accused of being the owner of a mysterious Panama company, Egrant, he put his head on the block and asked for a full investigation, taking the country into a snap election in 2017 – he won handsomely.

But the assassination of Caruana Galizia took the country into a spiral: the investigation, the accusations, the fallout inside the PN as factionalism divided it into the Delia and Busuttil camps, and the international scrutiny.