Parliamentary secretary Alex Muscat confirmed on Friday that he had been paid for consultancy services to Nexia BT in 2016 and 2017, even after the Panama Papers revelations, since he believed “that the accountants had done nothing illegal”.

Muscat was testifying on Friday at the public inquiry into the assassination of Daphne Caruana Galizia, facing questions about his former role as deputy chief of staff at Castille, directly assigned tasks by former OPM chief of staff Keith Schembri, whom he first met as an events coordinator within the Labour Party in the run up to the 2013 general election.

Muscat said he had spotted Brian Tonna of Nexia BT “once or twice at the waiting room at Castille,” but said that the auditing firm had no desk or office there. 

Having graduated in economics in 2005, Muscat confirmed recent media reports about consultancy work he did for Nexia BT in 2016 and 2017, while engaged on a “person of trust” basis at the OPM.

He gave “economic advice” and was paid for his services, Muscat told the board, adding that he had declared all income in his tax return and paid the tax due accordingly.

The consultancy had nothing to do with government projects, he stressed, replying to a direct question by the board.

“Did you seek authorisation to engage in such consultancy, given that you were working at the OPM?” asked parte civile lawyer Therese Comodini Cachia.

“I did not need to ask for authorisation. Just as a lawyer need not, neither does an economist,” Muscat retorted, pointing out that he had not been employed with the civil service, but was on a position of trust which he held up to January 2020. 

Asked about his reaction to the Panama Papers scandal, Muscat said that he had been “perplexed” and, after ascertaining the facts, he had faced both his boss - Schembri and former minister Konrad Mizzi, speaking his mind directly with both. 

“I told him [Schembri] what I had to tell him,” Muscat said, when pressed further by the board to disclose the conversation between the deputy and his chief.

“Are you finding it difficult to tell us?” asked Madam Justice Abigail Lofaro. 

“It’s not that I’m finding it difficult. It was a private conversation. But I told them that they ought to come clean.”

Yet in spite of that knowledge, Muscat had not changed his position in respect of Nexia BT.

“I did not change my mind because the accountants did nothing illegal, as far as I knew,” he explained. 

He had got to know about Schembri’s years-long friendship with businessman Yorgen Fenech, charged with complicity in the murder of the journalist, only “through the media”.

He confirmed spotting Fenech seated in the waiting room to the office of the prime minister. 

“I cannot say that I saw him more than once and I don’t know who he was meeting,” the politician said.

Under further questioning by Comodini Cachia, Muscat denied having ever met Fenech or even communicated with him on the phone in any manner. 

He stated that he never attended cabinet meetings when he was deputy chief of staff.

“Not even when Schembri was absent or perhaps abroad?” asked the judges.

“No,” came the reply. 

As for police or security services meetings, Muscat said that he had never been present for any of those. 

The news about the assassination had reached him while he was abroad on parliamentary duties. Muscat recalled an opposition member on the delegation, first breaking the news. 

“Upon my return, I was met, as expected, with a sense of great shock,” he explained.

Asked for his views on the events leading to the “political earthquake” culminating in the resignation of prime minister Joseph Muscat, the parliamentary secretary said that when news of the arrest of the alleged mastermind and middleman broke out, he had mixed feelings. 

“On the one hand I was shocked. On the other hand, I welcomed the fact that justice was being done in this country. I believe it was an important turning point for the country.”

Lawyers Jason Azzopardi also appeared parte civile. 

The inquiry continues on Monday.