Issue link: https://maltatoday.uberflip.com/i/668635
4 maltatoday, WEDNESDAY, 20 APRIL 2016 News Panama companies not acquired by auditors specifically for Schembri and Mizzi CONTINUES FROM PAGE 1 In his ministerial declarations, Mizzi has also declared some €310,000 in bank deposits, apart from €329,000 in loans for the Sliema property where he resides. The tax declarations raise questions as to Mizzi's alleged intentions to open an offshore company in Panama since the Australian Financial Review pub- lished emails from Nexia BT – who represent Panamaniam law firm Mossack Fonseca in Malta – showing the banks consulted for the opening of a bank account for Hearnville Inc. demanded at least $800,000 in initial annual deposits. According to emails published in the AFR, Nexia BT and Mos- sack Fonseca enquired with seven different banks to open accounts for Hearnville, as well as for Tillgate, the offshore company opened for the Prime Minister's chief of staff, Keith Schembri. Schembri has confirmed on his part that his offshore struc- ture was intended to transfer profits generated from his Kasco business group, and as a hold- ing structure for waste recycling business interests in the Gulf and India, and to expand his business group in the remote gaming in- dustry. But Schembri denied that this was part of a joint business en- terprise he was setting up with Mizzi, even though both Hearn- ville and Tillgate are mentioned in emails sent from Nexia partner Karl Cini to Mossack Fonseca, in which he specifies the use for the Panama companies. While both Panama compa- nies were acquired from Mossack Fonseca by Nexia in 2013, the au- ditors have denied having specifi- cally acquired them for Schembri and Mizzi. The latter say they formally acquired them on 2 June, 2015, which is when Mossack nominee company ATC Administrators transferred the ownership of the shelf companies to Orion Trust Ltd of New Zealand. For the past six months, Nexia and Mossack New Zealand had been setting up the two offshore trusts, Haast for Schembri and Rotorua for Mizzi. Then on 16 June, Mizzi in a signed statement said that the transaction was being funded by "personal assets and proceeds from business" and that Hearn- ville was "Still not trading. Even- tually management consulting and brokerage." Opposition leader Simon Busut- til has stated in parliament that brokerage fees could be a "form of bribery" and accused Mizzi of setting up a business venture using offshore secrecy while oc- cupying a ministerial role and signing privatisation contracts that have not yet been tabled in the House. PN deputy leader's earnings In the ensuing political melee provoked by Panamagate, Labour sought to hit out at PN deputy leader for party affairs Beppe Fenech Adami and the dubious permitting history surrounding his Gharghur villa. The original house was acquired by Fenech Adami before several extensions over the 1990s on land that is outside development zones necessitated regularisation. The property was finally sanctioned by its inclusion in the redrawn development zones of 2006, but only after then prime minis- ter Lawrence Gonzi instructed the planning authority to allow three exceptions to the Gharghur boundaries. The Labour Party has also ac- cused Fenech Adami of having built a swimming pool and deck that breache planning limits, apart from the fact that the dep - uty leader has not yet presented the original planning permit for the house he acquired. In 2014 and 2013, Fenech Ada- mi was the recipient of €21,000 and €16,000 in parliamentary honoraria, while also declaring professional earnings as a lawyer of €22,000 and €25,600; his wife is a notary public. Fenech Adami also earned €8,000 in rental in- come in 2014. 2014 tax statement 2013 tax statement Beppe Fenech Adami Konrad Mizzi Beppe Fenech Adami Konrad Mizzi Professional earnings gross €29,109 €0 €33,576 €0 LESS expenses on VAT €7,056 €0 €7,897 €0 NET profit/loss €22,053 €0 €25,679 €0 Spouse's earnings €4,408 €34,052 €4,361 €27,831 LESS expenses on VAT €3,097 €0 €2,475 €0 NET profit/loss €1,311 €34,052 €1,886 €27,831 JOINT SUBTOTAL €23,364 €34,052 €27,565 €27,831 Employment 1 €0 €51,672 €0 €40,442 MPs' honorarium €21,117 €0 €16,971 €0 Rents, royalties, premia €0 €21,543 €8,000 €16,025 LESS 20% reduction on rent €0 €4,309 €1,600 €3,205 LESS reduction on capital €0 €0 €0 €0 LESS private schools' rebate €4,600 €0 €6,900 €0 LESS childcare/other rebates €0 €0 €0 €0 TOTAL EARNINGS €39,881 €102,958 €44,036 €81,093 'From Panama down to Beppegate' Tax declarations of Konrad Mizzi and Beppe Fenech Adami Muscat hints at imminent closure on Mizzi MATTHEW VELLA PRIME Minister Joseph Muscat has yet again stated he will bring finality to the Panama Papers saga that has embroiled energy minis- ter Konrad Mizzi, whose offshore company in Panama and offshore trust in New Zealand have be- come a liability for the Labour government. "I'm convinced I will achieve closure. We departed from the confidence motion presented by the Opposition, to which the gov- ernment side responded, unani- mously, that there is full trust in this government," Muscat said. "But when I take my decision I would have had all the facts in hand. I would have taken a deci- sion the day before yesterday, but tomorrow I might have even more [facts] in hand," Muscat said, sug- gesting a decision on Mizzi's fate is imminent. On Monday, Labour MPs defeat- ed a motion of no confidence pre- sented by the Opposition against the government. "The aim of the confidence mo- tion was unclear: at one point it was to have the government change, at another it was to have the prime minister resign. But at no point did any of the MPs say one word as to what an alternative PN government would do, were it to find itself in power today. It was all about negativity," the PM said, who said the confidence mo- tion gave his ministers a 'window' to showcase his government's achievements. Muscat also insists that noth- ing illegal has been implicated about Mizzi's offshore structure, although Opposition leader Si- mon Busuttil on Monday said that the minister's declaration that he would use his company to receive brokerage fees was "akin to brib- ery". "When push comes to shove, nobody in parliament implicated anything illegal. There were many insinuations." Muscat also said that his ad- ministration will announce new investment plans from the private sector after Playmobil announced a €30 million expansion that will create 200 new jobs. He also hit out at PN deputy leader for parliamentary affairs Mario de Marco, who admitted with MaltaToday of having paid just over €34,000 in house works supplied by Redmap Construc- tions, five years since they first started. The payments were made in March and April soon after the resignation of the Allied group's managing director Adrian Hill- man – Redmap had been subcon- tracted for works at Allied's new printing press in Mriehel in 2011 and provided free construction work for Hillman and other Allied board directors as well. "I think Mario de Marco's posi- tion is tenable as deputy leader for party affairs, to go by the stand- ards Opposition leader Simon Busuttil has put up for himself. Everything the PN says about standards truly falls apart… un- like Beppe Fenech Adami, De Marco was a minister. "As minister responsible for MEPA, De Marco did not pay for works carried out in his home [by Redmap Constructions] and five years later he asked for an invoice when the name of this contractor was thrust in the news during the Panama Papers saga. To me, his excuse that he had no hurry to pay or finish the works is not credible. Why would he have asked for the invoice now, then?" Muscat also hit out at Simon Busuttil, saying the PN leader had built his career as a lawyer of sev- eral of the most powerful lobbies. "Busuttil was a special delegate for Gonzi, his deputy leader, and was involved in the PN govern- ment's inner core. But he looked away when there was corruption – I never heard him say one word on corruption, and who does not fight corruption, is corrupt to quote Eddie Fenech Adami." On its part, the PN hit back at Muscat's claims saying that it was Muscat's position that was unten- able. "Instead of taking the deci- sion he should have taken at the outset, Muscat forcefully defend- ed Mizzi and Schembri, a defence raising suspicions that Muscat is involved in these financial struc- tures. "Muscat has the cheek of say- ing Mario de Marco should resign for using Redmap Constructions when his parliamentary secretary Ian Borg used the same company," the PN said, referring to Borg's construction work in Dingli whose regularity has been disput- ed by an Ombudsman's decision.