Updated 1.30pm with Mizzi's second reaction, and Times of Malta new document

Konrad Mizzi did not list “estate planning” as the reason for setting up his New Zealand trust despite his claims that it was meant for his two properties in London and Sliema, according to Panama Papers documents.

A due diligence questionnaire submitted on behalf of Dr Mizzi by his financial advisers, Nexia BT, indicated the objectives of the trust as being “asset protection”, “confidentiality and privacy” and “family succession planning”.

The box marked “estate planning generally” – the first option on the list – was left unticked. Two boxes that did get ticked were the “do not audit” and “do not prepare accounts” categories.

Dr Mizzi had justified his complex financial set up – which involved a Panama company sheltered by a trust in New Zealand – by saying he would “populate it” with his assets, including a London property and rent coming from it.

Dr Mizzi’s income tax returns for 2013 and 2014 show rental income of just over €37,000 for the two years.

The New Zealand trustees were told Dr Mizzi and Mr Schembri would be engaging in business ventures in North Africa, India, China, Dubai and other Gulf countries

Dr Mizzi also owns a property in Sliema, though no mention was made of this property either by his financial advisers to Mossack Fonseca, the Panama law firm at the centre of a massive data leak. The Minister Without Portfolio had highlighted estate planning as being the prime reason for setting up the trust in an interview with The Sunday Times of Malta last February.

“The properties are financial assets and I want to manage them in the best possible way. It was a family planning decision.

“My family has done a lot for me and I am a father and a husband, so I think it is only fair that I give them something back,” Dr Mizzi had said when news of his hidden financial structures first emerged.

His financial advisers never made any mention of his properties, which were supposed to be held in his New Zealand trust, analysis of hundreds of leaked e-mails from the Panama Papers indicate.

Nexia BT partner Karl Cini sent scores of e-mails to Mossack Fonseca explaining Dr Mizzi’s financial set-up and the source of funds going into it but no mention was ever made of the properties.

Instead, Mossack Fonseca in New Zealand was told Dr Mizzi would be forming a “joint venture” with the Prime Minister’s chief of staff, Keith Schembri, through their Panama companies, involving lucrative ventures in remote gaming and waste trading all over the world. The New Zealand trustees were told Dr Mizzi and Mr Schembri would be engaging in business ventures in North Africa, India, China, Dubai and other Gulf countries.

Secrecy was a priority, the e-mails shows, as the two men’s financial advisers said that from a “commercially sensitive perspective” their name could not show up in any of these ventures.

Banks all over the world were contacted on Dr Mizzi and Mr Schembri’s behalf but none wanted to open accounts for them given their status as politically-exposed persons. Dr Mizzi was asked for a comment but none was forthcoming by the time of writing.

The Panama Papers were made available to Times of Malta through an investigative partnership with the International Consortium of Investigative Journalists and German newspaper Süddeutsche Zeitung.

The box marked “estate planning generally” – the first option on the list – was left unticked.

Outright lie - Mizzi

In a statement this morning, Dr Mizzi said he would file a libel against Times of Malta following the publication of yet another "outright lie".

The estate planning generally category was ticked in the said questionnaire and evidence will be presented in court, the minister said. 

"These attacks are systematic and in the past the Times of Malta had to retract other allegations made. I have reiterated consistently in the past weeks, the Rotorua Trust and related structure was solely intended as a family trust for assets and investments and whose beneficiaries are my wife and my children. The prospective investments include the leveraging of the existing house in London and future investments which will seek to attain a reasonable return for the beneficiaries.

A coordinated attack across multiple channels aimed at character assassination

"Today’s story seems to be another attempt to invent new angles, which clearly do not exist. It is evident that this will continue and in light of the coordinated attack across multiple channels aimed at character assassination. Different sources and websites will continue to rehash flawed and untrue stories.

"It is comical that over the past weeks so many contradictory and false motivations were presented for the Trust set-up which included inexistent commissions, monies from Azerbaijan, millions allegedly earned before entering politics, benefits from GASOL share transfer, alleged commissions from the agreement with Shanghai Electric Power among many others."

He said this strategy demonstrates that a character assassination campaign directed at myself is being pursued by various quarters, including the Nationalist Party, so as to dampen the results being obtained by this government in various fields.

In another statement later, Dr Mizzi accused Times of Malta as lying when it stated that the unticked box was found in a due diligence questionnaire submitted by Nexia BT.

He said the form submitted by Nexia BT does clearly include the ticked box as evidenced by the document being published below.

"The Nexia BT questionnaire is consistent with Dr Mizzi’s past statements that the Rotorua Trust and related structure were solely intended as a family trust for assets and investments. The Times of Malta chose to create confusion by misquoting and falsely attributing authorship of documents found in the Panama Papers."

Dr Mizzi claimed that "this latest lie" by Times of Malta, cannot be merely dismissed as amateurish journalism, but must be considered as part of a wider coordinated attack across multiple channels aimed at character assassination.

Times of Malta reacts

Times of Malta said that document sent to the media by Dr Mizzi states that Mossack Fonseca are the trustees.

Previous documents presented by Dr Mizzi as well as documents in the Panama Papers show that the trustees are Orion Trust in New Zealand.

Dr Mizzi himself had presented a document showing as much when news first broke about his offshore setup - see image below.

Mizzi is lying - PN

The Nationalist Party said the documents revealed by Times of Malta today confirmed that Dr Mizzi had lied when he said he opened the trust in connection with his property. 

It said Times of Malta had also proved that the minister had no intention to have the Trust audited.

"It's clear that Joseph Muscat is an accomplice with Keith Schembri and Konrad Mizzi because he has been defending them and repeating their lies.

"The three have now stepped the limit and are a threat to democracy. When faced with these obscenities, the PN will not shut up and is not scared of the libels instituted by Dr Mizzi and Mr Schembri. The PN expressed solidarity with journalists facing libel, attacks and intimidation from three men who were abusing of their position."

jacob.borg@timesofmalta.com