A proposal for a mystery entity "to promote and manage investment" between Malta and China but controlled entirely by an obscure offshore structure was uncovered as part of the Egrant inquiry.
According to a section of the 1,500-page inquiry report, which is based on an analysis by forensic accountant Miroslava Milenovic, communication that was reviewed uncovered a close relationship between former minister Konrad Mizzi, accountant Brian Tonna, former chief of staff Keith Schembri, and Cheng Chen who worked for a company that advised Shanghai Electric Power, the company which acquired a €320 million stake in Malta’s national energy corporation.
Last year, Times of Malta reported how anti-money-laundering investigators in the British Virgin Islands had sought information on Mr Chen as part of a money laundering probe.
In the correspondence reviewed by the forensic accountant, a Public Private Partnership called ‘MACffiN’ was agreed to be set up as an entity for promotion of investment between China and Malta.
While this would be registered in Malta it was also agreed that this would be “100% controlled by a holding company based in the British Virgin Islands”.
This entity would be authorised by the Maltese government as the only Maltese representative investment promotion agency in China.
It was also stated that this would be set with a certain person named ‘Sai’. This, the report says, could be Dr Mizzi’s wife Sai Mizzi Liang.
An emigration agency to be set up in China was also proposed.
“Through this model a Value chain for Chinese Applicants has been created in order to be in a position to submit request for Maltese identity documents,” the correspondence reads.
Konrad Mizzi reacts: proposal was not pursued or developed
In a reaction, former Tourism Minister Konrad Mizzi said he was satisfied that the inquiry report confirmed he never had accounts at Pilatus Bank, never received funds from Azerbaijan, and never committed money laundering.
"The Egrant Inc inquiry report refers to a proposal for a Public Private Partnership received by the Government of Malta in 2014 from a Chinese national who, at the time, worked as a consultant with expertise in commerce and investment from China. This was a proposal for cooperation with the Government of Malta for the creation of an entity to be registered in Malta, which would serve as a catalyst for Chinese investors," Mr Mizzi said.
"Government receives several proposals for investment, some of which take the shape of a cooperation with government. The proposal mentioned in the Egrant Inquiry report was not pursued, was not developed, and was therefore declined. Sai Mizzi, who, at the time acted as the representative of Malta Enterprise in China, was not even approached to work on this proposal.
"I am satisfied that the Inquiry confirmed that I never had bank accounts at Pilatus Bank, never received funds from Azerbaijan, and never committed money laundering. All allegations made against me turned out to be false."