Prime Minister Joseph Muscat will on Wednesday set out to defend his government’s reputation during a European Parliament debate on the rule of law in Malta.
The debate will be linked to the Panama Papers leaks involving Keith Schembri and Konrad Mizzi, who on Friday were re-appointed to the government.
Serious questions about the rule of law in Malta have been raised, particularly after the leak of multiple reports by the government anti-money-laundering agency (FIAU) into Mr Schembri’s and Dr Mizzi’s activities.
Two separate reports highlight suspicions that Mr Schembri laundered money from passport-sale kickbacks and engaged in money-laundering activities with this news organisation’s former managing director Adrian Hillman.
A four-page extract from another report raises questions about whether Dr Mizzi’s Panama company was set up to receive kickbacks from Enemalta’s part-privatisation, as well as from the company behind the floating storage unit providing LNG to the new power station.
The two reports concerning Mr Schembri, as well as the report extract involving Dr Mizzi, have all been published.
All the reports were given by the FIAU to the police last year.
Apart from next Wednesday’s debate, Dr Muscat has already turned down an invitation from the Pana committee on money laundering, tax avoidance and tax evasion to appear following the allegations linking his wife to the Panama company Egrant. Dr Muscat rejected this invitation on the basis that the inquiry into the allegations had yet to be concluded.
Mr Schembri also turned down multiple invitations to appear before the Pana committee.
Next week’s plenary debate was originally scheduled to be held last month following a push by the EPP, the Parliament group which the PN forms part of.
This bid was rejected amidst fears that the European Parliament would be seen as interfering in Malta’s general election. The debate on Wednesday will see Dr Muscat fielding questions from MEPs about what action he plans to take to address issues emerging from the Panama Papers in an attempt to assuage doubts regarding the rule of law in the country.
Malta’s financial services sector has come under increasing pressure and scrutiny from abroad, particularly from the European Greens, who view the island as a tax haven.
The government’s decision to opt out of the EU’s public prosecutor’s office on cross-border financial fraud and tax evasion drew sharp criticism from local Green Party chairman Arnold Cassola: “How could Malta risk having a foreigner uncovering and investigating financial misdemeanours of Maltese citizens, such as Konrad Mizzi and Keith Schembri?” Prof. Cassola said sarcastically in reaction to the government’s decision.
Dr Muscat used a political event in Gozo on Friday to say people would be weighing the Opposition [MEPs’] words during the plenary debate.
He said that people would see during the debate whether the Opposition had started to realise its past mistakes by finally feeling the pulse of the people.
Dr Muscat said he had no problem with personal criticism but insisted that there should be a united front abroad.
jacob.borg@timesofmalta.com