Konrad Mizzi’s company in Panama planned to receive $240,000 a year in its bank account from “management consultancy and brokerage”, according to e-mails sent by Nexia BT and included in the Panama Papers.
In the same e-mail asking for the opening of a similar bank account for Keith Schembri’s company, Tillgate Inc., Karl Cini, a partner at Nexia BT, sent a ‘prospective client profile’ to FPB Bank of Panama for Dr Mizzi’s company – Hearnville Inc.
Hearnville was set up to be incorporated in the Rotura Trust in New Zealand, where the ultimate beneficiary owners were Dr Mizzi, his wife, Sai, and his two children.
The Panama Papers were made available to the Times of Malta through an investigative partnership with the International Consortium of Investigative Journalists and German newspaper Suddeutsche Zeitung.
According to the dossier sent to Panama by Mr Cini, Hearnville Inc. was to receive one deposit of $20,000 a month from “consultancy services to various entities around the world”. While $15,000 a month was planned to stay in Panama – a tax haven – Mr Cini envisaged that Dr Mizzi’s company would transfer $5,000 a month to another account by international wire transfer.
There is also some negative publicity regarding the amount of remuneration of the settlor’s wife
No details were given on the final destination of the latter planned transaction.
Described as an engineer, Dr Mizzi was said to hold a doctorate in management, and the former minister for energy and health was estimated to have an income of $5,000 a month.
Nexia’s BT’s dossier states that Dr Mizzi was “a shareholder in a consulting firm that provided engineering services” and the current source of funds was from “savings from dividends earned from his consulting firm”.
Nexia BT also included details of Dr Mizzi’s wife, stating that she earned $12,000 a month as a consultant. No reference was made to Ms Mizzi’s political appointment in 2013 as Malta’s envoy to Asia, based in Shanghai, China. This omission was later highlighted by the legal department of the intermediary opening the trust in New Zealand for the Mizzis.
In an e-mail sent on August 24, 2015, the intermediary reviewing a questionnaire for the opening of the trust, said that Ms Mizzi, as a politically appointed person, was also to be treated as a politically exposed person.
“There is also some negative publicity regarding the amount of remuneration of the settlor’s wife [Ms Mizzi], so if you could, include details of the enquiries that you have made in this regard,” the intermediary asked.
In his reply, Mr Cini replied: “As you might expect, there will always be ‘attacks’ made on ministers by the Opposition party.”
Asked to explain how his company in Panama was planning to receive $20,000 a month from consultancy and brokerage and to state whether it was a coincidence that Nexia BT was trying to make similar arrangements for Mr Schembri, the Prime Minister’s chief of staff, Dr Mizzi referred this newspaper to a press release issued in April in which he reiterated that he had always been “truthful, consistent and provided correct facts on the establishment of a trust and related company”.
He insisted he had set up the trust and related company for the benefit of his family, as a trust for family assets and investments.
As for attempts to open a bank account, Dr Mizzi reiterated that this was part of the service that was offered to him.
"However, no bank account was ever opened and this confirms that no funds and no bank accounts are held by the trust or Hearnville Inc."
Dr Mizzi said that at no point did he sign any bank opening forms or give power of attorney to the service provider to open an account.
Asked whether he had Dr Mizzi’s authorisation prior to sending the information about his clients to Panama, Mr Cini said: “We are bound to keep our clients’ affairs strictly confidential. I regret, therefore, that I am unable to respond to any of your queries regarding this company and this client.”
Dr Mizzi has admitted publicly that it was Mr Schembri who recommended him to use Nexia BT’s services to open his offshore financial vehicles.
ivan.camilleri@timesofmalta.com