Updated with PN statement at 10.30am
The financial advisers who opened secret companies for Konrad Mizzi and Keith Schembri have turned down an invitation to meet a delegation from the European Parliament’s Panama committee.
European Parliament officials confirmed yesterday that both Brian Tonna, the managing partner at Nexia BT, and Karl Cini, a partner at the firm, would not be meeting the 16-strong delegation during its visit to Malta next week.
“We wanted both Mr Tonna and Mr Cini to answer various questions on the whole affair and to explain to us their involvement and why they suggested to their clients to open companies in Panama. Unfortunately, both refused our invitation to meet,” a European Parliament official said.
Asked to explain why they had refused the invitation to meet the visiting MEPs, both Mr Tonna and Mr Cini would only say they had replied to the invitation but declined to state their position.
“It is for the committee to decide whether and at what stage to divulge the content of our reply,” they said.
In a Facebook post yesterday, Alternattiva Demokratika chairman Arnold Cassola said Mr Tonna and Mr Cini had told the committee they would only be able to reply to questions in writing.
According to the leaked Panama Papers, Nexia BT advised both politically exposed persons to open a trust in New Zealand and to buy a shelf company in Panama that would act as a financial vehicle for the trust.
It is for the committee to decide whether and at what stage to divulge the content of our reply
Mr Mizzi, the Minister Within the Office of the Prime Minister, later said it was Mr Schembri, the Prime Minister’s chief of staff, who had suggested to him to set up this complicated financial vehicle, to “protect his family assets” and to let Nexia BT make all the necessary arrangements.
According to leaked e-mail exchanges, Mr Cini, on behalf of Nexia BT, made arrangements with Mossack Fonseca – the Panama-based company involved in the deals – to open companies in Panama for both Mr Mizzi and Mr Schembri.
It also resulted that Nexia BT had also opened an identical mechanism named Egrant. The name of the beneficiary owner remains a mystery to this day, as Nexia only passed on that information through a Skype call.
The Panama Papers leaks also indicated that Nexia BT was negotiating with various banks to open accounts connected to the secret companies of both Dr Mizzi and Mr Schembri.
While most of the banks refused, due to “the risk of PEPs” [politically exposed persons], a Panama-based bank accepted “as long as the owners deposit transactions to the tune of $1 million a year”.
Both Dr Mizzi and Mr Schembri were invited to appear before the Panama committee on Monday.
However, according to European Parliament officials, they had not yet confirmed their intention to meet the MEPs.
Nexia’s Mr Tonna also acts as the auditor of the Kasco group, Mr Schembri’s private business.
Since 2013, Nexia BT has also been engaged as a consultant to various government ministries, including the Office of the Prime Minister.
In a statement this morning, the Nationalist Party said the Prime Minister was responsible for the decisions being taken by Mr Schembri, Dr Mizzi, Mr Tonna and Mr Cini.
Prime Minister too weak - PN
In a statement this morning, the Nationalist Party said Dr Muscat did not have anything to hide, he would have dismissed the individuals who had been caught out opening secret companies in Panama to fill with money from graft and would also have insisted they appear in front of the committee to answer any questions that might be put to them.
But Dr Muscat was far too week to take the decisions a serious Prime Minister was supposed to take, the PN said.
ivan.camilleri@timesofmalta.com