Issue link: https://maltatoday.uberflip.com/i/1189024
11 bri – a formidable political player who does not however seem inclined to recognise his own faults. "He leads with his heart, he is jovial, and has a tremendous ability to mobilize people. He has a ruthless streak but I have only ever seen him at it when the situation demanded it. He never shirked from being at the forefront in tough times." But one insight hints at a darker side to Schembri's way of doing things. "On the other hand he is quick to offence, though forgiving after a while, and can ghost people over small things. That said he was never mean hearted or actively harmed anyone. He is very loyal and will always get a job done, no matter the cost. He has a sense of vision and reads peo- ple very well, and can quickly see the next steps anticipating reactions and consequences. He does however at time strug- gle to see his own faults." Another source however also noted how Schembri does not enjoy working with structure. "He prefers fluid organisa- tions… he is very enterprising and a workaholic... that's the Keith I know and worked with. The one we are seeing and reading about today is alien to me. The truth most probably lies somewhere in between." In September 2016, even af- ter Panamagate, Schembri would be hailed as "the catalyst in making sure that things get done" by the Prime Minister during a visit to Boston to close the deal with Crane Currency. It later transpired that Schem- bri's company held the Malta franchise of the currency print- ing machines used by Crane in what was a clear conflict of interest. The Panama storm The watershed moment came in March 2016 when Daphne Caruana Galizia outed the fact that Schembri and Konrad Mizzi opened a company in Panama after the general elec- tion and created trusts in New Zealand. The companies, Tillgate Inc. and Hearnville Inc., were for- mally acquired by Schembri and Mizzi in the summer of 2015. The two Panama-based companies were acquired by Maltese financial services firm Nexia BT in the summer of 2013 through Mossack Fon- seca, the Panama firm from where the Panama Papers leak originated. Email exchanges from the Panama Papers showed how Schembri's financial advisor, Nexia, went to great pains to keep his client's name hidden when trying to open bank ac- counts for Tillgate. When explaining the source of prospective funds for Till- gate and Hearnville, Nexia told its counterparts at Mossack Fonseca the companies would receive profits from recycling and remote gaming activi- ties. "The companies will act as a vehicle of [for] extracting the profits from this venture [recycling and gaming], since from commercially sensitive perspective they cannot appear as direct shareholders, either personally or via holding enti- ties," Nexia wrote, confirming the utmost secrecy that was required. The Nexia advisor also told Mossack Fonseca the activi- ties were not linked to Schem- bri's current line of work. This was presumably a reference to Schembri's public role as chief of staff. Yet Schembri managed to survive the Panama Papers storm, having been shielded from the fallout by his Prime Minister friend. The Labour Party went on to win the 2017 general election with an even bigger majority in the wake of an increasingly vocal Opposi- tion that accused government of corruption. Murder and 17 Black But Daphne Caruana Galizia's assassination in October 2017, shook the system. The aftermath saw a consor- tium of journalists from around the world team up into what was to be known as the Daphne Project. Multiple investigations would later reveal that Schembri's Panama company was not as innocent as he made it out to be. Tillgate had to have two tar- get clients: 17 Black and Mac- bridge. These were companies based in Dubai, which Schem- bri publicly admitted having the intention of doing business with. In a public statement in April 2018, Schembri said he had drawn up business plans with both companies but nothing came of them. However, in November 2018, a shocking revelation made by Reuters showed that 17 Black's sole owner was none other than Tumas Group CEO Yor- gen Fenech. The discovery gave the whole Panama affair a sinister twist. Fenech was a shareholder and director in Electrogas, the con- sortium that was awarded the lucrative multi-million-euro power station contract by gov- ernment. Moreover, Reuters also dis- covered that 17 Black had re- ceived two payments in its bank account – one from a Sey- chelles-based company fronted by an Azerbaijani national and another from the Malta agent of the gas tanker. Despite this clamorous dis- covery, Schembri was retained. Muscat kept him in office, postponing any decision on Schembri's future pending the outcome of magisterial inquir- ies. The end But all hell broke loose, two weeks ago when Fenech was ar- rested and now stands charged with complicity in the murder of Caruana Galizia. The already toxic link be- tween Schembri and Fenech through 17 Black had now be- come politically catastrophic but again Muscat would not budge. It was Fenech's shocking statement to the police that im- plicated Schembri in the mur- der that eventually pushed the chief of staff to step down. Schembri was arrested and questioned at length by the po- lice but released because of in- sufficient evidence linking him to the murder. But the two-line statement released by the po- lice failed to clarify shocking revelations that indicated how Schembri may have passed on sensitive security information to Fenech, among others. Schembri was the man with his hand on the steering wheel in Muscat's indomitable fa- çade. But now, the man who helped deliver the glory days, risks plunging the Labour Party into its darkest time ever. maltatoday | MONDAY • 2 DECEMBER 2019 ANALYSIS In September 2016, even after Panamagate, Schembri would be hailed as "the catalyst in making sure that things get done" by the Prime Minister during a visit to Boston to close the deal with Crane Currency.