Nexia International has distanced itself from the unfolding Panama scandal that involves its local partners, Nexia BT, Konrad Mizzi and Keith Schembri.
Contacted by the Times of Malta at their headquarters in London, a spokesman for Nexia International said that, although the local partners used their name and were part of their worldwide network, they did not assume any responsibility for what was done by associates.
In the wake of the Panamagate allegations and the sudden dissolution of a recent merger between Nexia BT and Gordon Cordina’s E-Cubed consultancy, this newspaper asked Nexia International whether it would be reviewing its relationship with its local representatives.
The spokesman for the international group, present in 120 countries, said that, although the local firm formed part of its network, “Nexia International does not deliver services in its own name or otherwise, nor does it accept any responsibility for the commission of an act, or omission to act by, or the liabilities of, any of its members”.
With regard to the local controversy over Nexia BT’s involvement in advising both the Prime Minister’s chief of staff and the Health and Energy Minister and the setting up of complex financial structures overseas, including in Panama, Nexia International said Nexia BT should answer for its actions.
So far, Nexia BT has remained silent on the matter even though Dr Mizzi has publicly admitted it was Mr Schembri who had suggested to him to use Nexia BT to open a similar financial vehicle he had through a trust in New Zealand and a trading company in Panama.
Nexia International does not accept any responsibility for the commission of an act, or omission to act by, or the liabilities of, any of its members
When contacted, Brian Tonna, managing partner at Nexia BT, would not comment and asked for questions to be sent via e-mail. Despite several reminders, Mr Tonna would only say he is still considering whether to reply.
Apart from acting as financial consultants to both Dr Mizzi and Mr Schembri, Nexia BT are also the auditors of Kasco Group, owned by Mr Schembri.
Mr Tonna was asked whether it was true that he was present at Castille twice a week as part of consultancy services he was giving to the Office of the Prime Minster but no reply was forthcoming.
Both the Office of the Prime Minister and Dr Mizzi’s ministry are refusing to give information to the Times of Malta on the number of direct orders, contracts and tenders given to Nexia BT or any of its subsidiaries since Labour’s return to power in March 2013.
Partial information given in Parliament shows that Mr Tonna’s advisory and auditing firm was awarded numerous public contracts by various ministries and public entities over the past three years valued at hundreds of thousands of euros.
The latest direct order was announced just days ago. According to Environment Minister Leo Brincat, his ministry gave a €27,000 direct order to Nexia BT Advisory Services Ltd to draw up a study on the waste management plan.
Dr Mizzi and Mr Schembri were asked to provide this newspaper with a copy of VAT receipts for payments to Nexia BT for services rendered in connection with the New Zealand and Panama financial structures but no reply was forthcoming by the time of writing.
Dr Mizzi only said he had paid for the services rendered.
Mr Schembri has so far not replied.