The publication of the Panama Papers database on Monday evening proved to be an anti-climax as no new names of politically exposed persons emerged apart from those already in the public domain.

Yet there was confusion as stories started circulating involving politicians, former ministers and leading businessmen whose names were somehow linked with the 714 companies registered in renowned tax havens like Panama and the British Virgin Islands.

The government reacted to the publication saying the Opposition’s “political bubble” had burst in its face because Nationalist MPs and exponents were also involved.

But what are the real implications of the Panama Papers for those directly involved and what possible political ramifications could they have?

What’s all this fuss about?

Politically exposed persons: In terms of political damage, it all depends if those involved are so-called politically exposed persons. In the financial word, this jargon is used to describe someone who has been entrusted with a prominent public function.

In general, a PEP poses a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence they may exercise.

Shareholder: By definition, a shareholder is any person or institution that owns at least one share of a company’s stock. Their direct involvement means they may receive part of the profits registered but may incur losses if it does badly.

Intermediary: A financial intermediary is an entity, such a tax advisory firm, insurance company or a bank, that acts as middle­man between two parties taking part in a financial transaction. In this case, an inter­mediary is the vehicle used to open companies in tax havens like Panama and the British Virgin Islands.

The obvious conclusion is that such scandals are mostly damaging for shareholders who are also PEPs, unlike intermediaries whose involvement is limited to providing a service to a client.

Konrad Mizzi and Keith Schembri

In all probability, Minister without Portfolio Konrad Mizzi and the Prime Minister’s top aide, Keith Schembri, are the most prominent Maltese figures who feature in this scandal for the simple reason that they each own secret Panama companies: Hearnville Inc. and Colson Services Limited.

Both companies were set up after they took public office, soon after Labour was elected to government in 2013, making it even more politically damaging.

While Dr Mizzi’s name had already been published last month when the International Consortium of Investigative Journalists released the first batch of leaked information, Monday’s revelation confirmed reports that had already surfaced in Mr Schembri’s regard.

According to the database, the two PEPs are shareholders in their respective companies.

Ninu Zammit

Retired politician and former Nationalist Cabinet minister Ninu Zammit was also listed as a shareholder of a BVI company by the name of Fiveolive Services Inc., which was in existence between 2005 and last November, when it was dissolved.

Mr Zammit severed his links with the Nationalist Party after being suspended last year in the wake of the Swiss leaks scandal. It had transpired that he held $3.2 million in a secret account at HSBC Geneva. He had regularised his position in 2014 when he benefitted from a government amnesty.

Norman Darmanin Demajo

A fourth name that emerged was that of Malta Football Association president Norman Darmanin Demajo who was a shareholder and an intermediary of BVI company Street Nine Marketing Ltd that is still active.

Mr Darmanin Demajo, who owned two other BVI companies in the past that had been since dissolved, denied any wrongdoing saying his holdings formed part of his professional work as an accountant and were not linked to his post as head of the association.

Adrian Hillman

The former managing director of the Allied Group, who stepped down in March amid graft allegations, which he is denying, is the owner of BVI company Lestor Holdings.

Malcolm Scerri

The owner of BVI company Selson Holding Corp, Mr Scerri is the general manager of Keith Schembri’s Maltese-registered company Kasco Ltd.

Louis Farrugia

Farsons Group chairman and Allied News­papers director Louis Farrugia is listed as an intermediary of Petrofina Holdings, which was active from 1984 to 2005 when it was dissolved.

In a statement, Mr Farrugia said the firm had been declared to the Central Bank and was intended to house a UK property.

He denied having any shares in overseas companies or any beneficial trust overseas.

Richard Cachia Caruana, EMD denials

EMD, which, according to the Panama Papers, was linked to 72 of the companies mentioned, yesterday made the following clarification:

“Together with other reputable firms and companies in Malta, EMD provides corporate services in the financial services sector. It is firms like this that, over the past 16 years, have helped Malta become the successful financial services centre that it is today.

“EMD has never assisted any politically exposed persons from any jurisdiction, including Malta, to set up any company, trust or other entity, whether as fiduciary or not, in the British Virgin Islands, Panama or similar jurisdiction.

“Richard Cachia Caruana’s relationship with EMD is solely that of consultant to the firm and its clients with respect to EU-related matters. He has never held any shares, directorships or other positions of management in EMD.”

A clarification issued by Mr Cachia Caruana’s legal adviser said:

“Richard Cachia Caruana holds no shares in companies in Panama, the British Virgin Islands or any other tax haven and has never held any.

“Richard Cachia Caruana has not provided advice about the opening or otherwise of companies in Panama, the British Virgin Islands or any other tax haven at any stage of his professional career.

“Richard Cachia Caruana has no conflicts of interest between his personal holdings and any State interests and has never had any.

“Richard Cachia Caruana’s relationship with EMD is solely to provide this firm and its clients with advice on EU-related matters and he has never had any shareholding or other financial interest in the firm nor has he ever held any directorships or management positions with the firm.

“The current attempts by members of the Prime Minister’s staff to imply any connection between the Panama Papers and Richard Cachia Caruana are therefore totally deceitful.”