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MT 17 April 2016

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maltatoday, SUNDAY, 17 APRIL 2016 3 News animal welfare newspaper.indd 1 15/04/2016 4:28 PM TOMORROW Muscat faces confidence vote Muscat faces confidence vote tomorrow MIRIAM DALLI PARLIAMENT will meet in a 13-hour marathon tomorrow as the government faces a motion of no-confidence presented by the Opposition on the back of Panama Papers revelations that show energy minister Konrad Mizzi and the Prime Minister's chief of staff Keith Schembri possessed offshore companies and trusts. Joseph Muscat enjoys an eight- seat majority in the House, and although senior ministers and MPs have made suggested that Mizzi should resign, it is under- stood they will back the Labour government against the motion. "I would be satisfied see- ing this govern- ment moving full-throttle on its policies and work," Muscat said yesterday when asked whether simply defeating the motion will suffice as he repels sustained calls for the resigna- tion of Mizzi and Schembri. The trove of over 11 million confidential documents leaked from Panamanian firm Mos- sack Fonseca – which revealed massive international tax eva- sion – has led to two protests by the Opposition calling on Mus- cat to decide on the fate of his two close aides. Mizzi was only recently elected one of his two deputy leaders. He yesterday said that a deci- sion will be taken "soon". "I have already said that I will take de- cisions over their future, and I will soon conclude what I need to conclude," Muscat told re- porters ahead of a conference in Gozo. On Thursday, members of the Cabinet and Labour's parlia- mentary group reiterated their confidence Muscat and refused to divulge their opinion on Miz- zi's offshore affair, instead insist- ing that Muscat "will be taking the decision that needs to be taken in due course". Amongst them was Education Minister Evarist Bartolo who, like his colleagues, urged report- ers to wait for Monday's vote in parliament. Bartolo – along with government whip Godfrey Farrugia – was the only Cabinet member to publicly voice his opinion on the Panama Papers, arguing that if he were Mizzi, he would have resigned. At Labour's general confer- ence a week earlier, Muscat said his decision would take into ac- count a tax audit into Mizzi's affairs and public sentiment, but said he would "not be swayed by the polls". His aide Keith Schembri has defended the setting up of the Panamanian offshore firm and an off- shore trust in New Zealand "as a contin- gency on ad- vice from his financial ad- visors" after local banks decided to offload their trust business to third parties and law firms. Konrad Mizzi has said his trust, Rotorua, was intended as a fam- ily trust and that the prospective investments included the "lever- aging of an existing property in London and future investments" for his family, which lives in China. The European Parliament Conference of Presidents has also unanimously backed the setting up of an inquiry commit- tee to probe the Panama Papers matter. A cross-political group of MEPs will now work to de- velop a mandate for the inquiry committee. The mandate will be deter- mined on May 4 by the Confer- ence of Presidents, with the full House taking a vote during the May plenary session in Stras- bourg. A spokesperson for the Euro- pean Parliament told MaltaTo- day that the list of individuals set to appear before the committee will be decided "once it has been fully set up". Follow MaltaToday.com.mt's live-blog tomorrow • Saviour Balzan presents Reporter at 10pm on TVM after vote Embattled: Panama Papers leaving Muscat breathless as the Opposition mounts a no confidence motion against his government CONTINUED FROM PAGE 1 Schem- bri opened his BVI firm in Janu- ary 2011, while Hillman opened his in May 2011. Both men used the same agent in Spain to open the companies. With that came unsubstantiated allegations from blogger Daphne Caruana Galizia, accusing Schembri – whose busi- ness group Kasco supplies Pro- gress Press with newsprint – of having given kickbacks to Adrian Hillman. Allied's directors set up a board of inquiry and Hillman tendered his resignation. Both Schembri and Hillman have denied the alle- gations, and the inquiry has yet to call in Hillman. Since the ICIJ leak this month, Redmap became the focus of two reports in The Times: first over Sladden's link with Schembri as shareholders in a film servicing company that lies dormant, and this week over a tax probe into Sladden's business. But a senior official at Allied Newspapers who has spoken to MaltaToday said that Sladden has also carried out construction work for no compensation for Adrian Hillman himself, acting manag- ing director Michel Rizzo, Allied's board secretary Clinton Calleja, as well as Mario de Marco. Additionally, in a denial Slad- den gave to The Times last week over reports of offshore transac- tions from Redmap to an offshore company he owns, Sladden made it a point to remind the newspaper of his relationship with the Allied board and its owners. "My company PS & Sons is 50% of Castille Investments, which ac- quired Canberra House," he said of the building facing Allied News- papers' offices on St Paul Street, Valletta, which he acquired from Allied. De Marco told MaltaToday that the Guido de Marco & Associates firm acted for Allied as the vendor. "At no stage did Guido de Marco & Associates or myself give any legal advice to any third parties, in respect of such sale, other than to Allied Newspapers. The decision to sell the property was taken by the Allied board of which I do not form part. The promise of sale was entered into with Neville Agius and a partner of his, on behalf of their company as purchaser." De Marco also said that Redmap had approached his firm on some five occasions for legal assistance on court-related issues. "At no stage was any legal assistance pro- vided by Guido de Marco & Asso- ciates to Redmap on matters relat- ed to the sale of Canberra House." Redmap and BVI company In the Panama Papers revela- tions reported in the Australian Financial Review – which pub- lished email conversations from the Mossack Fonseca agent in Malta – Sladden has featured as having used Redmap to consti- tute a €900,000 debt for a Cyprus nominee company A2Z Consulta for the payment of "quality checks and negotiations with suppli- ers" which it sub-contracted to a BVI company Blue Sea Portfolio, whose 50,000 shares Sladden him- self owns. Sladden denied the impression given by the Australian Financial Review, telling The Times that Redmap does not owe and has not paid or otherwise transferred any funds to A2Z Consulta. Redmap provided works gratis for Allied group officials Pierre Sladden Adrian Hillman

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