Issue link: https://maltatoday.uberflip.com/i/662335
2 maltatoday, WEDNESDAY, 6 APRIL 2016 News Malta connection hits the headlines in New Zealand CONTINUED FROM PAGE 1 So far, little is known of why Mizzi and the Prime Minister's chief of staff, Keith Schembri, who at the same time also opened his own offshore firm, Tillgate Inc in Panama, needed to hide their beneficial ownership of these companies. Both Hearnville and Tillgate were transferred to the 100% ownership of Orion Trust, the trustees of the Rotorua trust, and in the case of Schembri, the Haast Trust. In the meantime, Nexia BT in Malta, the agents for Mossack Fonseca, were trying to open a bank account in Dubai for the two offshore companies. In one email, Mossack Fon- seca asks for more information on what the companies would do, "as the reference to 'manage- ment consultancy and broker- age' does not explain this". This reference alone has led Opposi- tion leader Simon Busuttil to allege that corruption lies at the heart of the Mizzi-Schembri off- shore set-up. On his part, Prime Minister Joseph Muscat insisted yester- day that it was standard prac- tice to enquire about the bank account that formed part of the standard service offered by Miz- zi's and Schembri's advisors. A financial expert who spoke to MaltaToday suggested that a bank account was essential for any money held in the trust fund to be able to be deposited or withdrawn. With Orion Trust managing both the trust fund, as well as owning the offshore company, it could have been possible – al- though no smoking gun exists of wrongdoing – to use Hearn- ville as a business front to issue invoices for business services, with payments deposited in a bank account belonging to the NZ trust. The beneficiary of a trust would then use the bank ac- count to withdraw any funds, or else request that the trustee loan them money at zero interest. News of the Maltese connec- tion to the New Zealand off- shore trust regime was major news in the country, as New Zealand's transparency record when it came to offshore trusts was put into question. The executive director of the Tax Justice Network, John Christensen, which is based in Britain, said trusts were not registered and did not provide information about who their settlors are. "It's very easy to use a trust as part of a sophisticated offshore structure for anything like tax evasion, tax avoidance, that makes any country like NZ, which offers trusts to non-resi- dents, prone to being abused." Bonnici says Konrad Mizzi was 'politically naïve' WHILE saying that energy min- ister Konrad Mizzi had no bad intentions in opening a company in a tax haven, justice minister Owen Bonnici described his Cabinet colleague's actions as "politically naïve". Defending Mizzi 's intentions, Bonnici insisted that Mizzi had also declared all his assets in his declaration of assets, a declara- tion which was not published. Asked by journalists whether he had seen the declaration him- self, Bonnici admitted he had not " because it wasn't in his re- mit", but that Prime Minister Joseph Muscat and a number of Cabinet Office officials respon- sible for the procedure had. Bonnici insisted that Mizzi had done nothing illegal and that the financial advice he was given had been "politically naïve" at best. "The leaks only confirm that Mizzi has been telling the truth all along," Bonnici said, refer- ring to the revelations made in the Panama Papers that were published on Sunday by the In- ternational Consortium of In- vestigative Journalists (ICIJ). The leak, one of the biggest ev- er with 11.5 million files leaked from the database of Mossack Fonseca, the world 's fourth big- gest offshore law firm, revealed the way that many of the world 's most powerful leaders and fig- ures make use of secretive off- shore tax regimes. Owen Bonnici said his Cabinet colleague Konrad Mizzi had no bad intentions but was politically naïve in registering company in Panama Iceland prime minister resigns over Panama Papers revelations ICELAND'S embattled prime minister, Sigmundur Davio Gunnlaugsson, tendered his res- ignation in the wake of a mount- ing political crisis over his fam- ily's offshore investments, local media reported, but his depar- ture has yet to be agreed by ei- ther his coalition partners or the country's president. The agriculture and fisheries minister, Sigurour Ingi Johanns- son, told state broadcaster RUV that Gunnlaugsson had resigned. Local media said the move needed approval of both the rightwing Independence party and the president, Olafur Ragnar Grimsson, before it could be of- ficial. Reports said Gunnlaugsson would stay on as chairperson of his Progressive party, and Jo- hannsson would take his place as prime minister. Earlier on Tuesday, Grimsson refused Gunnlaugsson's request to dissolve parliament and call snap elections until he has had time to consult all of the coun- try's political parties. A big protest was held in front of parliament in Iceland on Mon- day. Further mass protests were held in Reykjavik yesterday as pressure mounted on the prime minister to resign following rev- elations in the leaked Panama Papers that his wife owned a se- cretive offshore investment com- pany with multi-million pound claims on Iceland's failed banks. Dozens of high-profile global figures are named in a huge leak from Panamanian law firm Mos- sack Fonseca. The leak, which first emerged on Sunday, has thrown an em- barrassing spotlight on the world of offshore finance and prompt- ed governments to promise ac- tion. Gunnlaugsson put his request for a dissolution to Grimsson af- ter the opposition proposed a no confidence motion. France reclassifies Panama as tax haven France will put Panama back on its blacklist of uncoopera- tive tax jurisdictions, its finance minister said yesterday after me- dia revelations about a Panama- nian law firm specialized in set- ting up offshore firms thrust the country into the spotlight. "Panama is a country that wanted us to believe that it could respect the main international tax principles and thus it was taken off the tax haven blacklist," Michel Sapin told lawmakers in a question and answer session in parliament. "France has decided to add Panama back on the list of un- cooperative countries with all of the consequences that that will have for those who have dealings with Panama," he added. Mizzi to sue Times for libel over Nicaraguan corruption association ENERGY minister Konrad Mizzi has announced he will sue The Times of Malta for libel, after the newspaper reported on its front page that one of his Panama company's directors was linked to a corruption scandal. The front page report 'Inves- tor in Mizzi firm linked to cor- ruption' specified that one of Hearnville Inc's shareholders, Mossack Fonseca employee Le- ticia Montoya Moran, was also linked with another firm used by former Nicaraguan president Arnold Alemán to divert some €87 million in state funds to his account. Montoya Moran is an employee whose name appears as a direc- tor or shareholder in at least 10,000 shell companies. Montoya Moran is revealed as the signatory on a certificate showing Konrad Mizzi as the beneficial owner of Hearnville Inc. Mizzi, who is under pressure by revelations of his own Pana- ma firm, said that the report was "riddled with lies and outright fabrications." Mizzi said the only sharehold- er of Hearnville Inc. are Orion Trust (New Zealand) Limited, which act as the trustees of his offshore New Zealand trust Ro- torua, and that there are no other shareholders, or investors in the company, "which as confirmed has no funds or bank accounts." Mizzi's handlers at one point had attempted to open a bank account first in Dubai, and then in Panama, which request was refused only because bankers realised that Mizzi was a politi- cally exposed person. "Contrary to the statements made in this article, the revela- tions made by ICIJ and the docu- mentation published concerning the matter have completely vin- dicated the facts as freely and willingly divulged by me, and I am satisfied with the rigour and honesty with which they have treated the information dis- closed," Mizzi insisted. "It is unfortunate that the Times has not acted with the same rigour and honesty," he added. Iceland's Prime Minister Sigmundur Davio Gunnlaugsson stepped down ahead of a confidence vote in parliament