Police Commissioner Lawrence Cutajar would not say whether he still saw no reason to investigate the Prime Minister’s chief of staff, Keith Schembri, and Tourism Minister Konrad Mizzi.

The police said in March 2017 there was no reasonable suspicion to even commence an investigation into Mr Schembri’s and Dr Mizzi’s secret offshore companies.

Replying to questions put to Mr Cutajar by the Times of Malta, a spokesman said that the police could not comment in light of the ongoing magisterial inquiries.

Prime Minister Joseph Muscat had given the same reason when asked about Daphne Project reports linking Mr Schembri and Dr Mizzi to a Dubai company – 17 Black.

Leaked e-mails showed 17 Black to have been one of the target clients that would have netted Keith Schembri and Konrad Mizzi $2 million in a single year

Leaked e-mails showed 17 Black to have been one of the “target clients” that would have netted Mr Schembri and Dr Mizzi $2 million in a single year.

According to a leaked draft report by the Financial Intelligence Analysis Unit, $1.6 million had been wired to 17 Black in 2015, at a time when the two government officials were trying to set up bank accounts for their Panama companies.

No magistrate is known to be looking specifically into the 17 Black link though a court agreed last month the 17 Black findings warranted a magisterial investigation. However, Magistrate Francesco Depasquale decided that the 17 Black evidence should be forwarded to the magistrate conducting a money laundering inquiry under way and involving Mr Schembri, Dr Mizzi, the Prime Minister and their financial consultants, Nexia BT.

This magisterial inquiry was requested by former Opposition leader Simon Busuttil after the police had failed to initiate any investigations themselves.

Magistrate Ian Farrugia had given the go-ahead for an inquiry in July 2017 but it was stalled by court appeals and has still to start.

In April 2016, the Financial Intelligence Analysis Unit had presented the police with a preliminary report containing the allegations and requesting a criminal investigation.

The police commissioner at the time, Michael Cassar, had resigned citing “health reasons” after receiving the investigation request.

The FIAU had also passed on two more reports to the police in 2016, outlining their suspicions that Mr Schembri was involved in money-laundering.

Mr Cutajar’s statement that there was no reasonable suspicion to investigate Mr Schembri came several months after the police had received the two FIAU reports.

Economic crimes unit head Ian Abdilla told the Times of Malta in February the police had “planned further action” after “analysing” the reports. He said such action was put on hold after the reports about Mr Schembri were leaked and magisterial inquiries got under way.

He also said the police had not received the 17 Black report from the FIAU, which involved an investigation into Dr Mizzi’s energy deals since he was appointed energy minister in 2013.

Timeline of events

March 2016: As the Panama Papers revelations implicating top government officials hit the headlines, the police declare there is no reasonable suspicion of a crime being committed, therefore no investigation into Keith Schembri and Konrad Mizzi was merited.

April 2016: The Financial Intelligence Analysis Unit requests an immediate police investigation based on preliminary information they gathered about Mr Schembri’s and Dr Mizzi’s Panama activities.

May 2016: A Financial Intelligence Analysis Unit report detailing suspicions that Mr Schembri received kickbacks on passport sales is sent to the police for investigation.

October 2016: A report about suspected money laundering by Mr Schembri and Allied Newspapers’ former managing director Adrian Hillman is passed on to the police for investigation.

March 2017: A newspaper interprets comments by Police Commissioner Lawrence Cutajar as meaning that Mr Schembri and Dr Mizzi were under investigation. The police promptly issue a statement saying there is no reasonable suspicion to open any investigations.

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