Plans by controversial business advisory firm NexiaBT to hive off a big chunk of its business appear to have stalled.

Nexia BT managing partner Brian Tonna had told Times of Malta that rival firm Reanda Malta would be taking over areas of his company’s business.

But Reanda in a statement on Tuesday that no hiving off of business is taking place.

“Reanda Malta Limited has not received business from Messrs Nexia BT and will not be receiving any such business. Consequently there is no ‘hive off’ and or transfer of any business taking place,” it said.

The statement was issued on the day Tonna was among those arrested by the police as part of a money-laundering investigation also involving former chief of staff Keith Schembri. Tonna is also among those who have had their assets frozen by court order. 

Earlier this month, a magistrate concluded an inquiry into claims that Tonna had facilitated a €100,000 cut on passport sales for Keith Schembri.

Times of Malta reported on Sunday that Nexia BT will no longer be offering advisory, local accounting, and audit functions, with Tonna saying Reanda Malta would be taking over these areas of his company’s business.

He insisted, however, that “other business units” of the firm would continue to operate as at present. Tonna did not respond to questions over whether he will continue to play a role in the firm. 

Reanda Malta is owned by auditor Robert Borg who sat on the evaluation committee which awarded a hospitals’ concession to Vitals Global Healthcare.

In its statement on Tuesday Reanda added that there has been no change and there will be no change in its shareholding.