Economist Gordon Cordina has cited “credibility issues” for pulling out of a merger with Nexia BT, the company at the centre of the Panama affair.

Dr Cordina said that, in view of the Panama controversy, he felt it would be better for his company, E-Cubed Consultants, to continue functioning as a separate entity.

E-Cubed Consultants only merged with Nexia BT Advisory, an affiliate of the Nexia BT group, last January. Nexia BT were the financial advisers to Energy Minister Konrad Mizzi when he opened a New Zealand trust last year that in turn acquired a shell company in Panama

Nexia BT also takes care of the financial affairs of Kasco Group, which is owned by Keith Schembri, the Prime Minister’s chief of staff.

Mr Schembri has admitted to having a New Zealand trust and a Panamanian company. He has so far not denied allegations that the trust was set up on the same day as Dr Mizzi.

Speaking on TVM programme Dissett last Wednesday, Dr Mizzi said it was Mr Schembri who had suggested to him the creation of a trust to manage his family’s wealth.

Dr Cordina yesterday told the Times of Malta that in the circumstances it was better to pull out of the arrangement with Nexia BT. He explained that Nexia BT Advisory worked distinctly from Nexia BT International.

“I would not have had visibility on the work of Nexia BT International, the company involved in this affair,” he said.

He justified the decision to pull out of the merger, adding there were “credibility issues” and in his line of business credibility was everything.

“In the circumstances I felt this was a fair way to proceed and as E-Cubed we will still be working with Nexia on a project by project basis but as a separate entity like we do with many other firms,” Dr Cordina said.

Nexia BT owner Brian Tonna is involved with Panama advisory firm Mossack Fonseca’s Malta affiliate through BT International.