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CULT FACE TAN WATER WINS COVETED USA BEAUTY AWARD

Eco Tan-Eco by Sonya are absolutely blown away by their latest award all the way from the USA; revolutionary cult favourite FACE TAN WATER has just WON BEST FACE TANNER in Healing lifestyles 9th annual Earth Day Beauty Awards 2018.

The first & original Aussie made Certified Organic tanning range founded by Gold Coast single mum in 2010 after sister’s skin cancer is now an award winning multi-million dollar global phenomenon… Sonya’s tenacity and journey has given us a healthier alternative to tanning and sun safety.

Healing lifestyles 9th annual Earth Day beauty Awards 2018, now in their 9th Year, their Safe Beauty & Body team tirelessly puckered and blotted, slathered and lathered, cleansed and rinsed and – most importantly – ingredient-checked for ‘no-nasties’ until they came up with their picks for the haute monde of clean, green beauty in 2018.

Certified by the Organic Food Chain Australia, Eco By Sonya Driver x Eco Tan products are made with only organic and natural ingredients. NO NASTIES, NOTHING SYNTHETIC, NOTHING ARTIFICIAL. Just phenomenal ingredients handpicked from mother nature in all their glory.

AUSTRALIAN MADE – CERTIFIED ORGANIC – VEGAN – CRUELTY FREE – NON-TOXIC – NOTHING SYNTHETIC

Google parent company Alphabet held a secret ‘logistics summit’ last week with reps from FedEx and other shipping companies

Alphabet held a closed-door meeting with internal executives and external retailers last week to discuss potential investments and strategies in the logistics sector.

The event, which was held in Silicon Valley, was called the Alphabet Advanced Logistics Summit and hosted by Alphabet’s research and development unit, “X,” and its recently spun out infrastructure company Sidewalk Infrastructure Partners, the company confirmed to CNBC. The objective was to explore potential business models and investment opportunities in the e-commerce space with a focus in logistics and fulfillment, according to three people who attended and photos viewed by CNBC.

“We frequently bring together stakeholders from across various industries to exchange ideas and brainstorm ways that technology can deliver innovative solutions in areas like logistics,” a company spokesperson told CNBC in an emailed response.

The majority of attendees were from Alphabet, which had several teams present, according to the people, who asked for anonymity when discussing the confidential meeting. It also included representatives from external companies including FedEx, JD.com, Deliv, Flexe and a former Walmart SVP, said one of the people who attended.

The discussions come as the company tries to expand its digital shopping reach amid retail giants such as Amazon and Alibaba, both of which have invested significantly in retail, technology and logistics. Alphabet invested $550 million in China’s second-largest online shopping service, JD.com, last year and began selling some of its goods in March.

It also comes a few months after Sidewalk Labs spun out a separate entity in August called Sidewalk Infrastructure Partners, which is still backed by Alphabet and Sidewalk Labs. SIP focuses on owning, acquiring and investing in technology-enabled infrastructure, particularly in urban areas. Sidewalk Labs is known for working on a high-profile and controversial new urban smart city on the waterfront of Toronto, for which it released the master plan in June. That plan also included an underground “logistics hub.”

Analytics a major focus

The recent meeting’s discussions included predictive analytics, order fulfillment, package tracking, Bluetooth usage and drone delivery, according to the attendees.

Discussions also touched on how Amazon has hampered online retailers’ ability to reap proper value on their businesses.

Sidewalk Infrastructure Partners co-founders and co-CEOs Brian Barlow and Jonathan Winer were among the meeting’s main moderators. They outlined several points the company was using to consider potential business opportunities, including “Accelerating Fulfillment and Delivery” and “Automated, Advanced Warehousing.”

Alphabet executives seemed most interested in the analytics side of things, which could help customers predict what products they could buy and sell, attendees said. The company could break through in predictive fulfillment, which is an industry term that describes forecasting demand by predicting buyer and seller behavior. Discussions involved potentially being able to use the vast data from Google’s search queries and keywords.

“Expansion in the breadth of a fulfillment network requires either the flexible, low CapEx approach of an on-demand warehousing or a standardized, partially-automated facility using modular robotics,” read one Alphabet presentation slide titled “Key Question No. 3.” That slide gave examples of companies Fabric and Takeoff, Stord, Flexe and Darkstore.

Attendees also discussed the role of hardware and how drone delivery could be used. Wing, the drone company that spun out from Alphabet’s X division last year, beat Amazon in launching the nation’s first commercial retail delivery in partnership with Walgreens and FedEx last week. Alphabet aggressively ramped up transportation investments last year, many of which could conceivably be used in delivery.

“As last-mile delivery alternatives proliferate with the emergence of new companies and technologies, we anticipate the emergence of a marketplace to bid last-mile delivery across a wide range of options,” another one of Alphabet’s slides, titled “Key Question No. 1,” read.

Luxury goods giant LVMH eyes $14.5bn Tiffany takeover

US-based Tiffany says it is “reviewing” a takeover offer from Bernard Arnault’s luxury giant LVMH.

Brexit: European leaders agree extension to 31 January

The UK will not now leave the EU on Thursday, as MPs prepare to vote on a December election.

Man in court over UK lorry deaths

Maurice Robinson appears in front of magistrates charged with 39 counts of manslaughter.

Vladimir Bukovsky: Soviet-era dissident dies in UK

He exposed the practice of declaring dissidents mentally ill in order to detain and discredit them.

EU agrees to give the UK a Brexit extension until January 31

The European Union has agreed to give the U.K. three more months to exit the bloc.

European Council President Donald Tusk, who chaired the talks among the 27 European governments, announced the decision Monday morning on Twitter: “The EU27 has agreed that it will accept the U.K.’s request for a Brexit flextension until 31 January 2020. The decision is expected to be formalised through a written procedure.”

This means that the U.K. will be able to leave the EU at any point before January 31, provided that its Parliament approves the exit agreement that Prime Minister Boris Johnson concluded with the other 27 EU leaders earlier this month.

Tusk’s announcement came after a meeting between the 27 European ambassadors, in Brussels, where they signed off on a third delay.

A draft document prepared ahead of that meeting, signed on October 27, and seen by CNBC said: “With a view to allowing for the finalisation of all steps necessary for the ratification of the Withdrawal Agreement, including the obtaining of the consent of the European Parliament, the European Council agrees to a further extension.”

“It notes that the Withdrawal Agreement will enter into force on the first day of the month following the completion of the ratification procedures by the Parties during this period, which ends at the latest on 31 January 2020,” the same document states.

The U.K. asked the EU earlier this month to be given until January 31 to leave the EU. A few days later, the U.K. Parliament voted in favor of Prime Minister Boris Johnson’s revised Withdrawal Agreement, but said once again that it needed more time to approve all the necessary legislation.

Eco by Sonya raised $100,000 for the children of Kenya

Eco Tan-Eco by Sonya pledged to raise much needed funds for the RAFIKI MWEMA Charity.
Determined to raise $100,000 fast, Eco Tan-Eco by Sonya has donated 2000 x Certified Organic Glory Oil for sale with 100% of the sales going directly to RAFIKI MWEMA for much needed funding to continue their incredible work with the children of Kenya.

“Imagine you are a child with no one in the world to care for you. Imagine being as young as 2 years old and being shunned and beaten for YOUR sin of being horrifically abused.” ‘Rafiki Mwema’ (translating to Loyal Friend) Kenya was born from the need to support very young girls and boys in Kenya who have suffered huge trauma.
On Saturday 22 May, within 1 week, more than $100,000 was raised for the children at Rafiki Mwema!

Katie Hill: US congresswoman resigns amid affair allegations

Congresswoman Katie Hill denies allegations she had an affair with a Capitol Hill aide.

Trump booed at Washington DC baseball match

Some people in the crowd chanted “lock him up” as the president appeared on video screens in the stadium.

Kincade fire: Emergency declared across California as fires rage

Roads around Santa Rosa are packed with cars as some 180,000 people are ordered to evacuate.

Argentina election: Centre-left Alberto Fernández wins presidency

Alberto Fernández sailed to victory with help from divisive former president Cristina Fernández de Kirchner.

EY: Gold, drug money and a major auditor’s ‘cover-up’

Accounting firm EY did not report suspect gold sales linked to drug smuggling, an investigation finds.

Where does Abu Bakr al-Baghdadi’s death leave IS?

The BBC’s Frank Gardner describes the operation to capture the Islamic State (IS) group leader.

The Malta Connection

1.0 Brief overview of the facts of the case.
An analysis was carried out by the FIAU in relation to Dr Konrad MIZZI and his ownership of an
offshore trust and company whilst holding political appointment with Maltese Government.
The FIAU also refers to a preliminary report submitted to the Malta Police dated 7 th April, 2016
bearing reference 474759/16. A more detailed analysis was subsequently carried out the FIAU
in terms of the powers conferred to it under Article 16(1) of the Prevention of Money
Laundering Act (Chapter 373 of the Laws of Malta).
Following the analysis of the facts available to the FIAU, together with other information
obtained by the FIAU through the powers conferred to it by law, it has been determined that
sufficient information is available to conclude that a reasonable suspicion of money laundering
or an attempt to launder proceeds of crime subsists in this case.
This decision is supported by the relevant facts outlined in this report.
2.0 Details the Natural and Legal Persons Involved
2.1
2.2
2.3
Name and SURNAME: Konrad MIZZI
Date of Birth: 4 th November, 1977
Maltese ID card: 521577M
Address: Flat 4, 46, Avril, Tigne Street, Sliema, SLM 3011
Name: ROTORUA TRUST
Declaration of Trust Date: 22 nd July, 2015
Trustee: Orion Trust New Zealand Limited
Settlor: Dr Konrad MIZZI
Name: HEARNVILLE INC.
Company No: 808074
Date of Incorporation: 9 th July, 2013
Address: 54 th E. Street, Mossfon Building, 2 nd Floor, Panama
Agent’s Name: Bufete MF & Co
Ultimate Beneficial Owner: Dr Konrad MIZZI
3.0 Financial Intelligence Analysis
3.1 Information obtained through open sourcesOpen source information indicates that in February 2013, Mr Karl Cini from Nexia BT flew to
Panama to meet people from Mossack Fonseca, a renowned Panamanian law firm.

Nexia BT’s only Panama-registered companies are Konrad Mizzi’s, Keith Schembri’s and Egrant Inc

Although his credit card activity does not place him in Panama it does show that on 24 th
February 2013, Mr Karl Cini was at Heathrow Airport.
Open sources indicate that during November 2015, Dr Joseph Muscat was in Dubai together
with Mr Keith SCHEMBRI and Dr Konrad MIZZI.
http://www.maltatoday.com.mt/news/national/58921/pm_meets_with_emir_of_dubai#.Wh
u5xrQ-cWo
http://www.independent.com.mt/articles/2016-02-10/local-news/Malta-and-United-Arab-
Emirates-to-cooperate-on-five-areas-including-government-mobile-apps-6736153111
On 22 nd February, 2016 open sources began making reference to interests, which Dr Konrad
MIZZI had in Panama and New Zealand.

If the (Panama) hat fits, wear it

Konrad Mizzi’s and Sai Mizzi Liang’s Easter lunch

On 24 th February 2016, open sources claimed that Konrad MIZZI’s Panamanian company was
incorporated at the same time that he was involved in negotiations in relation to Enemalta.
https://daphnecaruanagalizia.com/2016/02/konrad-mizzis-company-was-incorporated-in-
panama-shortly-after-he-became-energy-minister/On 27 th February 2016, open source information alleged that Dr Konrad MIZZI together with
Mr Keith SCHEMBRI 1 (The Government’s Chief of Staff), set up an asset concealing structure in
Panama. Other open source articles claimed that Dr MIZZI, who at the time was the Minister
for Energy and Health, used the services of Nexia BT Holdings Limited to set up a trust in New
Zealand, namely the ROTORUA TRUST.
http://www.stuff.co.nz/business/world/78511167/NZ-trusts-at-the-centre-of-Malta-money-
scandal-Mossack-Fonseca-papers-show
This information was corroborated following information which was obtained through leaked
files belonging to Panamanian law firm Mossack Fonseca, which files were dubbed “The
Panama Papers”.
https://www.timesofmalta.com/articles/view/20160403/local/international-journalists-leak-
the-panama-papers.607772
The same article also alleged that attempts were made to open a bank account in Dubai for
the Panamanian company HEARNVILLE INC.
“By August 8, the Mossack Fonseca franchise firm in Malta, which acts for Mizzi and Schembri,
was writing to Mossack Fonseca Panama: “We are in the process of opening a bank account in
Dubai for two of our Panama companies.”
–
Financial Review
Another article alleged that Mossack Fonseca were concerned that Dr Mizzi was a politically
exposed person and as a result wanted assurance that any funds being settled are not subject
to corruption risk and ideally would have been generated prior to any political appointment.
http://www.maltatoday.com.mt/news/national/63704/panama_papers__konrad_mizzi_keit
h_schembri_wanted_to_open_dubai_account#.Whu_dbQ-cWo
https://offshoreleaks.icij.org/nodes/15005201
1
Despite a number of similar factors which can be attributed to both Dr Konrad MIZZI and Mr Keith SCHEMBRI,
this report only covers information pertaining to Dr Konrad MIZZI. Any references made to Mr Keith Schembri
and his involvements are mentioned due to the fact that in some cases such information could not be omitted.On 7 th October 2016 open sources reported that the Prime Minister opted not to name the
company auditing Dr Konrad MIZZI due to this audit being a work in progress.
https://www.timesofmalta.com/articles/view/20161007/local/prime-minister-refuses-to-
name-firm-auditing-konrad-mizzi.627201
It is pertinent to note that upon publication of the independent audit relating to Dr Konrad
MIZZI, the date was shown as 21 st September 2016 (Appendix 8.1), which therefore shows that
on 7th October 2016, the audit was no longer a work in progress.A
post
on
https://daphnecaruanagalizia.com/2017/02/17-black-name-company-
incorporated-dubai/ dated 22 nd February 2017, indicates a link between a company registered
in Dubai, namely 17 BLACK LIMITED and four PEPs, namely Mr John Dalli, Mr Keith Schembri,
Dr Joseph Muscat, and Dr Konrad MIZZI. More information in relation to 17 BLACK LIMITED is
provided in Section 5.2 of this report.
A subsequent post which is dated 27 th February 2017, also alleges that 17 BLACK LIMITED is
being used by politically exposed persons to move funds in and out of Dubai
https://daphnecaruanagalizia.com/2017/02/17-black-prime-minister-claims-not-know-
anything/
3.2 List of Government Contracts
Following a request from the FIAU to be supplied with copies of a number of Government
contracts the FIAU obtained copies of the following contracts/agreements. Details of these
contracts are provided in Section 3.3 of this report.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
5 th July 2010 – Ugovor O Zakupu Zemljista I Izgradnji Vjetroelektrane lokalitet Mozura – Ulcinj
– reference 01-1567/12.
3 rd December 2012 – Annex 1 – To the contract on land lease and wind farm construction at
the site of Mozura – ULCINJ.
4 th April 2014 – Confirmation – Socar Trading SA – Re: Company Commodity Swap Transactions
– Cash Settled – Transaction reference Number 72405.
4 th April 2014 – Confirmation – Socar Trading SA – Re: Commodity Swap Transactions – Cash
Settled – Transaction reference Number: 72342
4 th April 2014 – Confirmation – Socar Trading SA – Re: Commodity Swap Transactions – Cash
Settled – Transaction reference Number: 72404.
12 th November 2014 – SEP (Malta) Holding Ltd and Enemalta plc and D3 Power Generation
Limited and Malta Government Investments Ltd – Subscription Agreement of D3 Power
Generation Ltd.
12 th December 2014 – Subscription Agreement of Enemalta plc.
16 th December 2014 – Enemalta plc and Electrogas Malta Limited – Site lease deed.
13 th April 2015 – Enemalta plc and Socar Trading SA and Electrogas Malta Ltd – Enemalta-LNG
SPA Direct Agreement.
13 th April 2015 – Enemalta plc – Electrogas Malta Limited – Armada Floating Gas Storage Malta
Ltd – Armada Floating Gas Services Malta Ltd – “FSU – Enemalta Bridge Direct Agreement”.
14 th April 2015 – Agreement between the Government of Malta and Socar Trading SA titled
“LNG Security of Supply Agreement”
14 th April 2015 – The side letter
14 th April 2015 – Delimara 4 – Minimum Functional Specifications updated with agreed EPC 1
Clarifications and Deviations.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Electricity Connection
Agreement.
14 th April 2015 – Enemalta and Electrogas Limited – Site Services Agreement.xvi)
xvii)
xviii)
xix)
xx)
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Gas Supply Agreement.
14 th April 2015 – Enemalta plc and Electrogas Limited – Implementation Agreement.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Power Purchase Agreement.
14 th April 2015 – Enemalta – Company’s Gas Facilities – Minimum Functional Specifications.
27 th October 2015 – Agreement on transfer of the agreement on land lease and construction
of wind power plant (Written in English and foreign language)
On 14 February 2017, the Government published the following contracts, albeit some of these
publications had certain details redacted.
http://www.independent.com.mt/articles/2017-02-14/local-news/Government-starts-
publishing-Delimara-station-contracts-6736170393
i)
ii)
iii)
iv)
v)
vi)
vii)
14 th April 2015 – Delimara 4 – Minimum Functional Specifications updated with agreed EPC 1
Clarifications and Deviations.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Electricity Connection
Agreement.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Site Services Agreement.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Gas Supply Agreement.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Implementation Agreement.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Power Purchase Agreement.
14 th April 2015 – Enemalta – Company’s gas facilities – Minimum Functional Specifications.
It is pertinent to note that the FIAU had not been supplied with the following contract which
was among those documents that was subsequently published:
i)
9 th May 2014 – Share Purchase agreement between Enemalta plc and Electrogas Malta Limited
shareholders
3.3 Timeline of Events
For the purposes of information included in this section it is pertinent to note that Dr Konrad
MIZZI is the holder of 2 credit cards. Card number 5522009410201437 is his personal Master
credit card which was opened on 25/10/2005 and has a credit limit of €15,000. The other was
issued on 09/05/2013 following Dr MIZZI’s political appointment. This card bearing number
4035710036111966 has a limit of €12,000 and is Dr MIZZI’s official card.
5 th April 2010 – Opposition leader Dr Joseph Muscat visits China as a guest of the Chinese
government. During this trip a Memorandum of Understanding was allegedly signed on
bilateral cooperation. This MoU was never made public.
https://www.timesofmalta.com/articles/view/20100405/local/joseph-muscat-leaves-for-
china.301368https://www.timesofmalta.com/articles/view/20131107/local/MP-casts-doubt-on-Muscat-s-
trip-to-China-in-2010.493621
Another article states that during the trip “Dr Muscat explained how he is looking forward to
discussing the possibilities of collaboration, especially in energy, tourism and education,
between China and Malta.”
https://daphnecaruanagalizia.com/2013/01/china-here-it-is-somehow-we-all-missed-it-and-
let-it-go/
5 th July 2010 – Ugovor O Zakupu Zemljista I Izgradnji Vjetroelektrane lokalitet Mozura – Ulcinj –
reference 01-1567/12.
Despite a request to have an English translation of this agreement, the FIAU was informed on
15 th April 2016 that a translated version of this document was not available.
Although the FIAU did not have a translated version of this agreement, a summary of this
agreement was provided in the document dated 27 th October 2015, titled “Agreement on
transfer of the agreement on land lease construction of wind power plant.”
The summary states the following: On 5 July 2010, The State of MNE CG and the INVESTOR
concluded the Agreement on Land Lease and Construction of Wind Power Plant on Site
Mozura, which was filed at the Ministry of Economy under number: 01-1567/12. The Lease
Agreement envisages the construction of Wind Power Plant with and installed capacity of 46
MW on immovable property as described and defined in Annex 1 to the Lease Agreement, filed
at the Ministry of the Economy under number 01-225/1.”
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
3 rd December 2012 – Annex 1 – To the contract on land lease and wind farm construction at the
site of Mozura – ULCINJ.
This contract was concluded in Podgorica on 3 rd December 2012 with the parties to the
contract being The State of Montenegro and The Consortium “Fersa & Celebic” as the investor.
The investor is made up of Fersa Energias Renovables with its head office at S.A. Travessera de
Garcia 30, 08021 Barcelona, Spain. This company is referred to as the leader of the Consortium
and is represented by the Managing Director, Enrique Fernandez-Cardellach and the Limited
Liability Company “Celebic”, head office located in Podgorica, St. Kralja Nikole 27. Celebic,
which has the registration number 02073048 was represented by President Tomislav Celebic.This contract immediately makes reference to the conclusion of Contract no. 01-1567/12
dated 5 th July 2010, the subject of which is the lease of the public land covering, an area of
502,858.30m2 at the site of Mozura – Ulcinj, for the construction and operation of a wind farm.
The agreed period of lease is 20 years.
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
9 th January 2013 – In his role as energy expert, Dr Konrad Mizzi gave a detailed plan to convert
the Delimara power station.
https://www.timesofmalta.com/articles/view/20130109/local/Labour-announces-its-plan-to-
cut-utility-bills.452480
February 2013 – Mr Karl Cini allegedly travelled to Panama to meet people from Mossack
Fonseca (Reference has already been made in Section 3.1 of this report)
13 th March 2013 – Dr Konrad MIZZI was sworn in as Minister for Energy and the Conservation
of Water. http://parlament.mt/mizzi-konrad
21 st March 2013 – Mr Karl Cini sent a reminder to Mr Luis Quiel in relation to details relating to
a Panama company and possibly a trust.
This email raises a number of issues:
i)
ii)
The date of the original request (14 th March 2013) was just one day after Dr Konrad MIZZI was
sworn in as Minister and five days after the general elections.
The fact that Mr Karl Cini informed Luis Quiel that he was possibly after the setup of a trust as
well as the Panamanian company is not in line with claims made during 2016/2017 that the
companies were shelf companies which were then sold at a later date. Given the costsiii)
associated with the setup and maintenance of a trust, it would make no financial sense to a
company service provider to place a non-operative, shelf company in a trust for an indefinite
period of time.
Of further suspicion is the fact that this email was one of those which was not included in the
emails to the FIAU following the FIAU’s request to be provided with these documents.
25 th March 2013 – Mr Karl Cini sent an email to Ms Cristina Rios stating the following:
It is pertinent to note that at this point in time no reference had yet been made to the 3
Panamanian companies as these were ultimately set up in July 2013. This email therefore
indicates that the initial plan was to set up one company in Panama and have it held under
trust, with details of the ultimate beneficial owner being provided over Skype to ensure a
higher level of confidentiality.
8 th April 2013 – The Minister for Energy and The Conservation of Water, Hon. Konrad Mizzi.
Meets Indian external Affairs Minister Preneet Kaur. Collaboration in the area of Energy
Renewable and Energy Efficiency was discussed during this meeting.
11 th April 2013 – Energy Minister Dr Konrad Mizzi stressed that the Government wants clean,
lower-cost electricity to be sourced from new investors in liquefied natural gas (LNG) storage,
re-gasification and natural supply infrastructure. The below article further states that although
no formal call for tender will be issued, the Government would be following EU rules, including
exemptions provided by procurement rules. The Department of Contracts will not be involved
in the selection process since this is not a call for tenders.
https://www.timesofmalta.com/articles/view/20130411/local/enemalta-issues-call-for-
expression-of-interest-for-new-power-station.465033
8 th May 2013 – GEM Holdings Limited is incorporated in Malta. More information in relation to
this company is available in Section 3.4 of this report.23 rd May 2013 – Mossack Fonseca & Co. (Malta) Limited are incorporated in Malta.
During the course of a compliance visit the FIAU was informed that Mossack Fonseca
approached BT International to incorporate its offices in Malta. Given that Mr Karl Cini had
already travelled to Panama in February 2013 allegedly to meet people from Mossack Fonseca
it is understandable that the firm approached BT International to set up a branch in Malta.
28 th May 2013 – Dr Konrad Mizzi ́s official credit card activity places him in Qatar.12 th June 2013 – Electrogas Malta Limited is incorporated in Malta. More information in
relation to this company is available in Section 3.4 of this report.
17 th June 2013 – The FIAU obtained 3 emails which were sent on this day between Ms Cristina
Rios, Mr Adrian Dixon (both of Mossack Fonseca) and Mr Karl Cini. The communication was in
reference to a list of BVI shelf companies. This short chain of emails evidently shows breaks in
the communication and reference is also made to information which was already shared
verbally in telephone conversations.
The first email from Mr Adrian Dixon to Mr Karl Cini whereby he provided a list of BVI shelf
companies available.
The second email from Mr Adrian Dixon to Ms Cristina Rios which in Spanish translates to;
“Based on the attached list of our telephone conversation, the client decided to purchase BVI
companies TORBRIDGE SERVICES INC. and WILLERBY TRADE INC. For these two companies will
require the service of directors and nominal shareholders and the issuance of a general power
for each. On the other hand the client wants to open a bank account in Panama for one of thesecompanies. Only a bank account to prove that it is going and if it works, will ask to open others
in the future. What you basically want to do is your online banking queries in English. Anything
you let me know.”
The third email from Ms Cristina Rios to Mossack Fonseca & Co. (Corporations – MFL/MFT
Sections) which is also in Spanish translates to “Please open the cases of acquisition for the
societies of BVI TORBRIDGE SERVICES INC. and WILLERBY TRADE INC. The client is BTI
Management Inc. and the contact person is Mr Karl Cini. Please include Mr L Quiel and me in
these cases”.
A detailed analytical report relating to WILLERBY TRADE INC. dated 12 th July 2016 was
disseminated to the Police following the determination of a reasonable suspicion of money
laundering which included, amongst others, the purchase of a shelf company (WILLERBY
TRADE INC) by Mr Brian Tonna in the British Virgin Islands through the services of Mossack
Fonseca Limited in which foreign director services were used and, more importantly, shares
are being held in nominee capacity by ATC ADMINISTRATORS INC on behalf of Mr Tonna. This
set up and the choice of jurisdictions reduces to a very large extent the possibility that any
information on the link between Mr Tonna and the company is identified by the authorities in
Malta.
This report also states that WILLERBY TRADE INC. which was incorporated in the BVI on 19 th
March 2013, opened a bank account with Pilatus Bank plc on 27 th November 2014. A
declaration of beneficial ownership shows that as at 20 th June 2013, ATC Administrators Inc.
held shares in WILLERBY TRADE INC. on behalf of Mr Brian Tonna.
In a communication to the FIAU from Mr Karl Cini dated 9 th May 2016 (Appendix 8.2), Mr Cini
states that TORBRIDGE SERVICES INC. was a shelf company which was acquired in 2013 and
which had not traded. As a result the shares in this company were transferred to Mr Cheng
CHEN holder of Chinese Passport Number G32458221. More information in relation to
TORBRIDGE SERVICES INC. and Mr Cheng CHEN are provided in Section 5.1 of this report. In
this communication, Mr Cini further states that the only service provided to Mr CHEN was
assistance in setting up a bank account with Pilatus Bank plc in the name of TORBRIDGE
SERVICES INC.
In light of the information obtained from the email correspondence dated 17 th June 2013 and
the fact that, of the 2 companies, only one was retained for the benefit of Mr Brian Tonna,
raises the suspicion that WILLERBY TRADE INC. was the company for which the Panamanian
Bank account was intended. The statement that “if it works, will ask to open others in future”
further raises suspicion beyond any reasonable doubt that WILLERBY TRADE INC. was being
used as a test prior to setting up the Panamanian companies and respective bank accounts for
Dr Konrad Mizzi and Mr Keith Schembri amongst possible others.
Of further suspicion is the fact that for reasons which are unknown to the FIAU, the account
opening process in Panama for WILLERBY TRADE INC. was seemingly not pursued. Instead thedecision was taken to open a bank account with Pilatus Bank plc, a bank which applied for its
credit license in October 2013 and was finally incorporated on 6 th December 2013.
In light of this, the choice of Pilatus Bank plc was deemed suspicious given that a client such as
WILLERBY TRADE INC. was not in line with the profile of the bank, whose business model is that
of a private bank that mainly services high net-worth foreign individuals. Of further suspicion
are the unconfirmed links between the bank’s main shareholder and Mr Keith Schembri.
19 th July 2013 – The Mossack Fonseca & Co. Corporations Department sent an email to Mr Karl
Cini, who is partner at Nexia BT, confirming 3 companies have been reserved until 16 th July
2013. The following is an overview of the respective companies:
Jurisdiction Company Registered on Period Type of M&AA
Panama Egrant Inc. 08/07/2013 II Bearer/Registered
Shares
Panama Hearnville Inc. 09/07/2013 II Bearer/Registered
Shares
Panama Tillgate Inc. 15/07/2013 II Bearer/Registered
Shares
This correspondence also covered applicable fees. Although a specific currency wasn’t
mentioned, the total costs due to Mossack Fonseca & Co. (Panama) for the acquisition and
registration of each company was quoted at 1,525.
This information also disproves claims made by Nexia BT and Dr Konrad Mizzi in that the
companies were shelf companies which were purchased by Nexia BT and subsequently 2 of
which were sold to Dr Konrad Mizzi and Keith Schembri respectively.
In the event that Nexia BT had been purchasing these companies as shelf companies which
were sold on at a later date, one would expect Mr Cini to proceed immediately with thepurchase of these companies. Instead Mr Cini asked that the 3 companies be reserved for a
number of days and subsequently also asked for an extension on this reservation. This indicates
that Mr Cini likely needed time to communicate with the actual beneficial owners of the
companies and therefore could not take certain decisions himself.
The suspicion is further substantiated by the fact that when purchasing the BVI registered
companies, WILLERBY TRADE INC. and TORBRIDGE SERVICES INC. Mr Cini gave the go ahead
himself on the purchase of these companies without any need for reservations or extensions.
This is understandable given that WILLERBY TRADE INC. was intended to for Mr Brian Tonna
while TORBRIDGE SERVICES INC. was in fact purchased as a shelf company which was then sold
on later.
24 th July 2013 – Dr Konrad Mizzi’s official credit card details places him in Qatar.
26 th July 2013 – Mr Cini contacted Mossack Fonseca & Co. (Panama) to advise that he still needs
the aforementioned companies however he did not have time to complete the paperwork. As
a result Mossack Fonseca & Co. (Panama) confirmed an extension till 2 nd August 2013.
7 th August 2013 – Mr Karl Cini emailed Shanhani Logan from Mossack Fonseca & Co. (Panama)
with the filled and signed order forms. The FIAU obtained copies of the order forms in respect
of HEARNVILLE INC and TILLGATE INC. Both forms were signed 4 th August 2013 by Mr Brian
Tonna (under nominee provided by Mossack Fonseca)
10 th September 2013 – Dr Konrad Mizzi’s official credit card places him in Shanghai.11 th September 2013 – MoU between China Power Investment Corporation and the Ministry
for Energy and the Conservation of Water of the Republic of Malta.
The FIAU does not hold a copy of the said MoU, however reference is made to this MoU in the
Energy Sector Cooperation and Investment Agreement dated 12 th September 2014.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
The allegations made in this article are substantiated by the Subscription Agreement dated 12
December 2014 which was obtained by the FIAU. Further information related to this
agreement is provided later in this section of the report.
3 rd October 2013 – Dr Konrad Mizzi’s official credit card activity places him once again in
Shanghai.13 th October 2013 – Enemalta plc announces that Electrogas Malta Consortium is the preferred
bidder for the gas supply and power purchase agreement.
http://www.enemalta.com.mt/index.aspx?cat=3&art=218&art1=229
24 th October 2013 – Dr Konrad Mizzi’s official credit card places him in Israel.
13 th November 2013 – Mr Karl Cini’s credit card activity places him in Shanghai.
15 th December 2013 – Dr Konrad Mizzi’s official card activity places him in Shanghai for the 3 rd
time since September 2013.29 th January 2014 – Dr Konrad Mizzi’s official credit card activity places him in ShanghaiIn addition to Dr Mizzi’s presence in China, the transaction made in favour of “Shanghai
Shenjiang Zichan Shanghai” also raises suspicion given that online searches indicate that this
company may be an investment management company. Attempts made by the FIAU to gather
further information on the beneficiary of this transaction were not successful.
Company Profile
Shanghai Shenjiang Asset Management Co., Ltd., a subsidiary of Shanghai Shenjiang
Development and Construction Investment (Group) Co., Ltd., is a wholly owned subsidiary of
Shanghai Shenjiang Group. It was formally incorporated on February 1, 2008. Registered
capital of 100 million yuan, the business scope of corporate asset management, restructuring,
mergers, property management, industrial investment and investment management.
Shenjiang Group is mainly responsible for the settlement of long-term assets and new assets
management. The existing two subordinate branches, namely the Shanghai Bund Indigo Hotel
Branch, Shanghai Shenjiang Asset Management Co., Ltd. Lu Han Restaurant catering branch;
two subsidiaries were Shanghai Shenjiang Sports Culture Investment Co., Ltd. and Shanghai
Shenjiang Cross-Strait Tourism Terminal Co., Ltd. At present the main business of the project
are the Bund Indigo Hotel, Shiliupu, the old pier, East Pier, South Pier and so on.
Website: http://sjbanks-zc.com/, welcome to click to view company details.
http://www.chinahr.com/company/20-289075.html
3 rd February 2014 – Advisory and Finance Committee Meeting 7 during which no reference was
made to unleaded petrol and diesel hedging for Q3 and Q4 2014.
12 th February 2014 – Sitting No 119 (Appendix 8.34) – A statement was given by Dr Konrad
Mizzi on the situation of Enemalta Corporation in relation to the theft of electricity.
25 th – 26 th February 2014 – Sitting No 124 and No 125 (Appendix 8.34) – A statement was given
by Dr Konrad Mizzi by way of an update on the situation of Enemalta Corporation in relation
to the theft of electricity.
11 th March 2014 – Sitting No 128 (Appendix 8.34) – A statement was given by Dr Konrad Mizzi
in relation to the investment of Shanghai Electric Power in Enemalta.12 th March 2014 – Heads of terms agreement with Shanghai Electric power to partial sale of
Enemalta. The FIAU does not hold a copy of the said agreement.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
It is interesting to note that the NAO report dated March 2015 states “In the AFC meeting
dated 12 March 2014, no targets for Q3 and Q4 2014 were set. This is further corroborated
through an email exchange between Committee members dated 20 March 2014, where
indications of the prevalent market rates at the time for unleaded petrol (Q3 $913.50/MT and
Q4 $908.75/MT) were provided.”.
The dates identified in this section of the NAO Report coincide with the date in which the
“Heads of terms agreement with Shanghai Electric power to partial sale of Enemalta” was
drawn up and the date in which Konrad Mizzi travelled to Beijing presumably on official
business given the credit card he used was his official card.
20 th March 2014 – Dr Konrad Mizzi’s official credit card places him in Beijing.
21 st March 2014 – Based on information obtained through the NAO Report dated March
2015 an email was circulated among Advisory and Finance Committee members with
proposed targets set. Advisory and Finance Committee member agrees with proposed
targets (Unleaded petrol @ $920/MT and diesel @ $905/MT)
1 st April 2014 – Confirmation – Socar Trading SA – Re: Commodity Swap – Cash Settled –
Transaction reference Number 72342.This confirmation was sent to Enemalta Corporation (Back Office) from Socar Trading SA, the
subject being “Commodity Swap Transactions – Cash Settled, Transaction Reference Number:
72342.” (Appendix 8.28)
The definitions and provisions contained in this confirmation letter refer to the ISDA Master
Agreement, as published by the International Swaps and Derivatives Association.
The total national quantity in this confirmation is quoted as 33.000 MT with a fixed price of
USD 910/MT with the commodity being diesel. The fixed price payer was listed as Enemalta
Corporation and the effective date was 1 st July 2014.
On the basis of information gathered from the LNG Security of Supply Agreement dated 14 th
April 2015, Socar Trading SA entered into an agreement with Electrogas Malta Limited for the
supply of LNG, while Electrogas Malta Limited was the entity which entered into an
agreement with Enemalta plc to supply gas/electric. Enemalta plc which was incorporated on
1 st July was in turn the company which acquired Enemalta Corporation in accordance with
Cap 536 of the Laws of Malta.
In light of this set up, the FIAU questioned the reason were as to why Enemalta Corporation
purchased a commodity for USD30,020,000 when on the effective date the Corporation was
to be acquired by Enemalta plc.
Of further suspicion was the fact that this confirmation letter also did not provide account
details for payment.
The NAO report dated March 2015 raises further suspicions in relation to this hedging
agreement due to the fact that the Advisory and Finance Committee had agreed on a price of
$905MT for this commodity however the hedge deal was agreed with a price of $910/MT.
2 nd April 2014 – Dr Konrad Mizzi’s portfolio was changed to Minister for Energy and Health.
This is the same day when 2 hedge deals were agreed and entered into by Enemalta
Corporation and Socar Trading SA with respect to unleaded petrol hedge at a rate of
$920/MT.
The first hedge being: Confirmation – Socar Trading SA – Re: Commodity Swap Transactions –
Cash Settled – Transaction Number 72404.
This confirmation was sent to Enemalta Corporation (Back Office) from Socar Trading SA, the
subject being “Commodity Swap Transactions – Cash Settled, Transaction Reference Number:
72404.” (Appendix 8.29).
The definitions and provision contained in this confirmation refer to the ISDA Master
Agreement, as published by the International Swaps and Derivatives Association.The total notional quantity in this confirmation is quoted as 16,000MT with a fixed price of
$920/MT with the commodity being gasoline. The fixed price payer was listed as Enemalta
Corporation and the effective date was 1 st July 2014.
On the basis of information gathered from the LNG Security of Supply Agreement dated 14 th
April 2015 (Appendix 8.38), Socar Trading SA entered into an agreement with Electrogas
Malta Limited for the supply of LNG. While Electrogas Malta Limited was the entity which
entered into an agreement with Enemalta plc to supply gas/electric. Enemalta plc which was
incorporated on 1 st July 2014 was in turn the company which acquired Enemalta Corporation
in accordance with Cap 536 of the Laws of Malta.
In light of this set up, questions were raised as to why Enemalta Corporation purchased a
commodity for USD14,720,000 when on the effective date the Corporation was to be
acquired by Enemalta plc.
Of further suspicion was the fact that this confirmation letter did not provide account details
for payment.
The second hedge being: Confirmation – Socar Trading SA – Re: Commodity Swap
Transactions – Cash Settled – Transaction Reference Number 71405.
This confirmation was sent to Enemalta Corporation (Back Office) from Socar Trading SA, the
subject being “Commodity Swap Transactions – Cash Settled, Transaction Reference Number:
42405.” (Appendix 8.30)
The definitions and provisions contained in this confirmation letter refer to ISDA Master
Agreement, as published by the International Swaps and Derivatives Association.
The total notional quantity of this confirmation is quoted at 24,000 MT with a fixed price of
USD 920/MT with the commodity being gasoline. The fixed price payer was listed as
Enemalta Corporation and the effective date was 1 st October 2014.
In light of the aforementioned deals, the NAO Report dated March 2015 also noted that
these deals correspond to “100 percent of Enemalta Corporations Q3 and Q4 2014 unleaded
petrol and diesel requirements.”
Of further suspicion was the fact that this confirmation letter did not provide details for
payment.
3 rd April 2014 – Open source information indicates that Enemalta Corporation entered into a
hedging agreement with Socar Trading SA following “ministerial direction” during 2014.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744The FIAU does not hold any further information in relation to this agreement. However, it is
pertinent to note, that the NAO Report 2 dated March 2015 states:
“The NAO has reservations regarding the manner by which the decision to hedge unleaded
petrol and diesel requirements for Q3 and Q4 2014 was taken. Documentation reviewed by
this Office, which solely focused on the setting of targets, failed to provide a comprehensive
account of the AFC’s sourcing of final approval and the subsequent placement of order with
Socar Trading SA. Minutes of the Petroleum Procurement Committee meeting dated 3 April
2014 indicated that the deal with Socar had been concluded following “ministerial direction”.
The corroborates media allegations and is also in line with the FIAU’s determination that the
deals which took place on 1 st and 2 nd April 2014 respectively warrant further questioning.
It is also interesting to note that the Petroleum Procurement Committee was informed of the
“ministerial direction” exercised in the hedge deals between Socar Trading SA and Enemalta
Corporation during a meeting held on 3 rd April 2014 which is just 1 day after Dr Konrad
Mizzi’s portfolio was changed to that of Minister for Energy and Health.
In addition to the aforementioned, the NAO Report also noted that;
“Notwithstanding the review of emails exchanged by the AFC and clarifications put forward
by the Minister and the then Chair EMC, the NAO is of the opinion that the documentation
detailing the final approval issued by the Committee and the subsequent placement of orders
with Socar Trading SA was incomplete. This rendered it impossible for the Office to
determine the extent of ministerial discretion exercised and responsibilities assumed by the
AFC. Given the magnitude of the agreement reached with Socar Trading SA, this Office
considers the lack of documentation as detracting from the process’s accountability and a
shortcoming in terms of governance.”
This was deemed suspicious given that the same report further states that upon review “all
hedging contracts entered into with third parties, the Office positively notes that all invoices
precisely corresponded to the settlement data recorded and provided by EMC.”
Such findings beg the question as why the agreements with Socar Trading SA have a number
of inconsistencies when compared to other contracts entered into with third parties.
2
www.parlament.mt/file.aspx?f=50896In its reaction to the above findings, the government said it made contact with Azeri
counterparts after Enemalta had informed the energy minister in March 2014 that it would
have to raise fuel prices by 2c due to changes in the market.
15 th April 2014 – Dr Konrad Mizzi’s official credit card activity places him in Shanghai and
Beijing
2 nd May 2014 – New Energy Supply Limited is incorporated in Malta. More information in
relation to this company is available in Section 3.4 of this report.
9 th May 2014 – Share Purchase AgreementThis agreement is made between Enemalta Corporation as the Transferor and Gasol plc, GEM
Holdings Limited, Siemens Project Ventures GmbH, Socar Trading SA as the Transferees and
Malta Power and Gas Limited as the Company (Appendix 8.9).
May 2014 – Agreement on new gas-fired power plant with Electrogas in Delimara. The FIAU
does not hold a copy of the said agreement.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
Feb 2014 – May 2014 – The following is a summary of the timeline of events leading to
agreement with Socar Trading SA as identified by the NAO Report dated March 2015. All the
below listed events have been included chronologically in this timeline of events.
2 nd June 2014 – Mr Karl Cini’s credit card activity places him in Dubai.11 th June 2014 – Enemalta Corporation transferred its shares in Malta Power and Gas Limited
(Electrogas Malta Limited) to Gasol LNG Import Limited, GEM Holdings Limited, Siemens
Project Ventures GmbH and Socar Trading SA (Appendix 8.45).
12 th June 2014 – Dr Konrad Mizzi’s credit card activity places him in Luxembourg.
30 th June 2014 – Dr Konrad Mizzi’s credit card activity places him in Luxembourg and London.
28 th July 2014 – Mr Karl Cini emailed Mossack Fonseca asking for details in relation to a “Look
through company” in New Zealand, which pays no tax on foreign income, and a New Zealand
bank account.
2 nd August 2014 – Dr Konrad Mizzi’s official credit card activity places him in Shanghai and in
Turkey on the 3 rd August 2014.8 th August 2014 – Mr Cini communicated with an unidentified third party on the pros and
cons of companies setting up bank accounts in New Zealand versus Nevada and Wyoming.
19 th August 2014 – The domestic company Enemed Co Limited is incorporated.
24 th August 2014 – Dr Konrad Mizzi’s official credit card activity places him in Shanghai till 31 st
August 2014.25 th August 2014 – Eight contracts on transfer of land to Enemalta. The FIAU does not hold
copies of these said contracts.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
27 th August 2014 – Chapter 536 of the Laws of Malta came into force (with the exception of
Article 4 of the said Act). This Act, which bears the title “Enemalta (Transfer of Assets, Rights,
Liabilities and Obligations) Act” was put into place in order to make provisions for the
transfer of all the assets, rights, liabilities and obligations of Enemalta Corporation to
Enemalta plc. The Act also allows for the regulation of the functions of the distribution
system operators and repeals the “Enemalta Act” Chapter 272 of the Laws of Malta which
came into force in October 1977 and provided for the establishment of the Enemalta
Corporation.
Chapter 536 of the Laws of Malta inter alia, empowers the Minister, who as per the Act
means the minister responsible for energy, to remove any restrictive conditions imposed by
the Government on the Corporation as per Chapter 268 of the Laws of Malta, and to make
regulations on the recommendation of the Authority as well on own initiative after
consultation with the Authority.
29 th August 2014 – The domestic company D3 Power Generation Limited is incorporated. This
company purchased Delimara 3 power generating units from Enemalta on 27 th November
2014.
6 th September 2014 – Dr Konrad Mizzi’s credit card activity places him in London15 th September 2014 – Dr Konrad Mizzi’s official credit card activity places him in Montenegro
while on the 28 th September his activity places him in Shanghai.
19 th September 2014 – The NAO Report dated March 2015 noted that:
“An important development was registered with respect to the AFC in the meeting of 19
September 2014 wherein it was stated that following the Petroleum Division’s set-up as a
separate entity, hedging with respect to unleaded petrol and diesel, as well as corresponding
FX requirements would no longer be addressed by the Committee. Instead, this function was
assumed by a separate committee under the responsibility of Enemed Company Limited.”
3 rd October 2014 – Exclusive agreement with American company, World Fuel Services to use
facilities of MOBC. This deal was struck without the issue of public tender. Dr Mizzi claimed
that a tender could not be issued as “all local bunkering companies are involved in some kind
of court action or are currently under investigation.” The FIAU does not hold a copy of the
said agreement.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
https://www.timesofmalta.com/articles/view/20150208/local/questions-over-mobc-deal-
struck-without-tender.555291
7 th October 2014 – In a meeting which took place on this date, the Executive Chair informed
the AFC that the CBM representative had resigned from his role within the Committee. TheAFC agreed to contact the CBM for a replacement; however no replacement was effected.
This information is available in the NAO Report dated March 2015 which can be accessed
through www.parlament.mt/file.aspx?f=50896.
14 th October 2014 – Energy Minister Konrad Mizzi announces that Shell would be providing
power to the new gas power station despite previous announcements that the provider
would be Socar. https://www.timesofmalta.com/articles/view/20141020/local/shell-gas-for-
power-station-no-completion-date-set-so-far.540542 On the same day Dr Konrad Mizzi’s
official credit card activity places him in Montenegro.
23 rd October 2014 – An email from Mr Daniel Leon from Mossack Fonseca & Co. (New
Zealand) to Mr Karl Cini included a sample trust deed and the information “There exists the
possibility to open the account with any bank of preference. Our fees for assisting in the
opening of the account are USD1,500.” Given that Dr Konrad Mizzi stated that he sought
asset management in 2014 could indicate that at this point in time Mr Karl Cini was making
arrangements on behalf of Dr Konrad Mizzi.
http://www.maltatoday.com.mt/news/national/62554/konrad_mizzi_to_declare_new_zeala
nd_family_trust#.WhxN5bQ-cWo
29 th October 2014 – Sale of former Enemalta Petroleum division to Enemed.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
26 th November 2014 – The legal person SEP (Malta) Holding Limited was incorporated in
Malta. Its sole shareholder is Shanghai Electric Power and Energy Development Limited, a
company registered in Hong Kong having company number 1359631. The company also has
one director, who is Chinese national and resident, Ji Sun.27 November 2014 – Sale of Delimara 3 Power generating units from Enemalta to D3 Power
Generation Limited.
The FIAU does not have a copy of this deed of sale however, the FIAU is aware of this deed
due to the reference made to this same deed in the contract dated 12 th December 2014
titled Energy Sector Cooperation and Investment Agreement.
28 th November 2014 – Dr Konrad Mizzi’s credit card activity places him in Shanghai.
It is pertinent to note that this trip came just 2 days after the incorporation of SEP (Malta)
Holding Limited in Malta.
12 th December 2014 – The government signed a multi-million investment deal with the
Chinese energy company Shanghai Electric Power.
http://www.independent.com.mt/articles/2014-12-12/local-news/Agreement-on-strategic-
investment-in-Enemalta-by-Shanghai-Electric-Power-to-be-signed-today-6736127225
12 th December 2014 – Energy Sector Cooperation and Investment Agreement
This agreement was entered into between the Government of the Republic of Malta,
Shanghai Electric Power Co. Limited, Enemalta plc and SEP (Malta) Holding Limited. The
agreement covers a number of points including:
i)
ii)
iii)
The establishment of SEP (Malta) Holding Limited which was incorporated on 26 th
November 2014;
The establishment of 3D Power Generation Limited which was incorporated on
26 th August 2014;
The intention to incorporate International Renewable Energy Development
Limited which was subsequently incorporated on 2 nd February 2015;iv)
v)
vi)
The intention to incorporate International Energy Services Centre Limited which
was subsequently incorporated on 22 nd December 2015;
The operations of D3 Power Generation Limited; and
The Governance of the Companies
The full agreement is being attached to this report as Appendix 8.27.
This agreement was tabled in parliament on 14 th January 2015, Paper Laid No: 4270.
12 th December 2014 – Subscription Agreement of Enemalta plc.
The agreement (Appendix 8.32) was entered into between Enemalta plc, The Government of
the Republic Malta, Malta Government Investments Ltd and SEP (Malta) Holding Ltd.
This agreement refers to a MoU which was entered into between the Ministry for Energy and
the Conservation of Water and China Power Investment Corporation on 11 th September 2013
in Dalian China. The agreement makes further reference to a Heads of Terms Agreement and
a Framework Agreement on Cooperation in Energy Sector in Malta, both of which were
entered into on 11 th March 2014.
It was in accordance with these agreements dated 11 th March 2014 that Shanghai Electric
Power (or any other entity designated by it) subscribed to 33% of the issued shares of
Enemalta plc.
This deal was reported on various local and Chinese media.
This subscription agreement identifies the receiving amount for the Subsciption Money as
account number 40014873296 which is held at Bank of Valletta plc.
12 th December 2014- SEP (Malta) Holding Ltd and Enemalta plc and D3 Power Generation Ltd
and Government Investments Ltd – Subscription Agreement of D3 Power Generation Ltd.
A copy of this agreement has also been published and is available through
https://gov.mt/en/Government/Press%Releases/Documents/Subscription%20Agreement.pdf
As was the case with the agreements which were published in February 2017, parts of this
published agreement were redacted, however this document was not included in the list of
documents published through http://www.independent.com.mt/articles/2017-02-14/local-
news/Government-starts-publishing-Delimara-station-contracts-6736170393
The Subscription Agreement raises a number of concerns which are covered hereunder.
i)
Primarily, the date on the 1 st page of this document, which is countersigned by 5
individuals, is shown as 12 th November 2014.It is pertinent to note that the company SEP (Malta) Holding Limited was not yet
incorporated at this stage. Documents obtained through the Registry of Companies, namely
the Memorandum and Articles of Association of SEP (Malta) Holding Limited shows that the
company was incorporated on the 26 th November, 2014 (Appendix 8.10)
The following is an overview of all the documentation which is available on the registry of
companies website which relate to SEP (Malta) Holding Limited.
In spite of the date registered on the covering page of this agreement, the first page of the
document states that “The Subscription Agreement (the ‘Agreement’) is entered into on 12
December 2014 (the “Execution Date”) in Valletta, Malta.
This conflict in dates has raised suspicions on when the agreement was actually entered into.
ii)
Other concerns in relation to this Subscription Agreement were the numerous
sections in the published version of this document that were redacted.
The parties to this agreement are SEP (Malta) Holding Limited, Enemalta p.l.c., D3 Power
Generation Limited, Malta Government Investments Limited. A copy of the complete
agreement has been attached to this report for your attention (Appendix 8.36). A copy of the
published version of this agreement has also been included (Appendix 8.37). For ease of
reference the sections which have been redacted in Appendix 8.37 have been marked in
Appendix 8.36.
It was noted that some of the sections which were redacted in the report made reference to
certain conditions which had to be satisfactory to SEP (Malta) Holding Limited and that the
payment of the subscription money would only be affected upon the satisfaction of SEP(Malta) Holding Limited that the relevant conditions have been fulfilled. These conditions
also made reference to Article 6.05 of the Delimara Finance Contract 3 .
Certain sections which were redacted also empowered the CEO of D3 Power Generation
Limited, to enter into financial deals having a value of less than €1million. Open source
information indicates that Mr Chen Zhichao holder of identification document P01360586.
Section 2 of this Subscription Agreement deals with the Subscription of Shares and Capital
Structure of D3 Power Generation Limited. The following is an overview of the changes in
share allotment and capital from the incorporation date of D3 Power Generation Limited to
the present day.
Article 2.1 lists the company’s share capital of €166,666,667 being divided into;



150,000,000 Ordinary A shares of €1 each;
16,666,666 Ordinary B shares of €1 each; and
1 Ordinary C share of €1.
The authorized share capital is in line with the authorized share capital which is listed in the
undated Memorandum of Association of D3 Power Generation Limited. This document was
registered with the Registry of Companies on 29 th August 2014. This also raises questions as
to why the Memorandum of Association of D3 Power Generation Limited is not dated.
3
The Delimara Finance Contract refers to the finance contract entered into by and between
the European Investment Bank (EIB) and Enemalta on 22 nd September 2008 in relation to D3
Power Plant. The FIAU does not hold a copy of the contract.As per the same Memorandum of Association the initial subscribes to issued share capital
were Enemalta plc (C65836) and Malta Government Investments Ltd (C10175).
In a document which was registered with the Registry of Companies on 15 th December 2014
it was resolved that the sum of €166,666,667 was payable by D3 Power Generation Limited
to Enemalta plc.As a result of this resolution, D3 Power Generation Limited converted the majority of the sum
which was due to Enemalta plc into shares. As a result Enemalta plc now holds 16,666,666
Ordinary shares which were fully paid up.In a further document which was presented to the Registry of Companies on 21 st January
2015 reference is made to extraordinary resolutions which were signed by all the
shareholders of D3 Power Generation Limited on 10 th December 2014.iii)
Of further suspicion was the fact that in accordance with this Subscription
Agreement, the existing shareholders waived their rights to subscribe to any of
the ordinary A shares being subscribed to by SEP (Malta) Holding Limited.
It was noted that the Appendix 8.37 is not a true copy of Appendix 8.36 having some sections
redacted. This was noted due to the differences noted in the layout of the two documents.
It was further noted that the copy of the Subscription Agreement which was obtained by the
FIAU does not include Schedules 3, 4 and 5. In light of this the FIAU does not hold any further
information in relation to the contents of these schedules.
15 th December 2014 – MoU Azerbaijan on strategic cooperation oil and gas.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
15 th December 2014 – MoU with Socar on strategic cooperation in oil and gas.
The FIAU does not hold a copy of the said MoU.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.60574416 th December 2014 – Enemalta plc and Electrogas Malta Limited – Site Lease Deed
This agreement was entered into on 16 th December 2014 between Enemalta plc
(represented by Mr Frederick Azzopardi ID 152076M) and Electrogas Malta Limited
(represented by Mr Michael Kunz Passport PB6889757).
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
17 th December 2014 – Dr Konrad Mizzi’s official credit card activity places him in Baku, which
was then followed by a trip to Shanghai on 20 th December 2014.
It is interesting to note that this trip to Baku came in the midst of the commercial agreements
between Enemalta plc and Electrogas Malta Limited, a consortium in which Socar Trading SA
is a shareholder.
20 th December 2014 – Following Dr Mizzi’s trip to Azerbaijan, his official credit card activity
places him in China till 5 th January 2015.15 th January 2015 – Dr Konrad Mizzi’s official credit card activity places him in various hotels
in London till 2 nd February 2015, whereas on the 4 th February 2015, transactional activity
places him in Paris.
29 th January 2015 – Five year agreement between Enel and Enemalta on use of the Malta-
Sicily interconnector.
The FIAU does not hold a copy of the said agreement.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
2 nd February 2015 – The private limited liability company, International Renewable Energy
Development Limited was incorporated as per the Energy Sector Cooperation and
Investment Agreement dates 12 th December 2014.
The shareholders in this company are SEP (Malta) Holding Limited with 4,095,840 A Class
shares, while Enemalta plc is the holder of 1,755,360 B Class shares.
17 th February 2015 – Dr Konrad Mizzi’s official credit card activity places him in Shanghai
followed by a trip to London on 25 th February 2015 and Montenegro on 28 th February 2015.18 th March 2015 – Preliminary Agreement on privatization of Gozo and St. Luke’s Hospital.
The FIAU does not hold a copy of the said agreement.
https://www.timesofmalta.com/articles/view/20160315/local/konrad-mizzis-major-
agreements-remain-unpublished.605744
25 th March 2015 – The British company Gasol (Malta) Limited was incorporated as a private
company having company number 9510338 (Appendix 8.40).
6 th April 2015 – The company Armada Floating Gas Services Malta Limited is incorporated.
6 th April 2015 – The company Armada Floating Gas Storage Malta Limited is incorporated.13 th April 2015 – Enemalta plc and Socar Trading SA and Electrogas Malta Limited – Enemalta
– LNG SPA Direct Agreement.
This agreement was entered into on 13 th April 2015 between Enemalta plc, Socar Trading SA
and Electrogas Malta Limited. The agreement covers the obligations between the parties in
relation to the long-term supply of electricity and gas to Enemalta plc and the long-term sale
and purchase agreement of LNG.
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
13 th April 2015 – According to information obtained by the FIAU, 3 agreements were entered
into on this date which are in relation to the MV Armada Mediterrana. These agreements are
the following (Appendix 8.43):
i)
ii)
iii)
Enemalta plc – Electrogas Malta Limited – Armada Floating Gas Storage Malta
Limited – Armada Floating Gas Services Malta Limited – “FSU-Enemalta Bridge
Direct Agreement.”
Enemalta plc – Electrogas Malta Limited – Armada Floating Gas Storage Malta
Limited – “FSU – Enemalta Charter Direct Agreement.”
Enemalta plc – Electrogas Malta Limited – Armada Floating Gas Storage Malta
Limited – “FSU – Enemalta O&M Direct Agreement.”
These agreement, involving Enemalta plc, Electrogas Malta Limited, Armada Floating Gas
Storage Malta Limited and/or Armada Floating Gas Services Malta Limited allowed for the
chartering of the MV Armada Mediterrana.
On reviewing these agreements the FIAU noted that the shareholding of Armada Floating Gas
Storage Malta Ltd and Armada Floating Gas Services Malta Limited is held by Bumi Armada
Offshore Holdings Limited. The registered address of the latter is Trust Company Comlex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, Marshall Islands.
These agreements also indicated that the account number pertaining to Bumi Armada
Offshore Holdings Limited is held with Citibank N.A. Singapore branch bearing account
number 859269028.
It is pertinent to note that these agreements were not included in the agreements which
were published by the Government.
14 th April 2015 – Agreement between the Government of Malta and Socar Trading SA titled
“LNG Security of Supply Agreement” (Appendix 8.38)
The parties in this agreement relating to the supply of liquefied natural gas (LNG) are Dr
Konrad Mizzi, appearing on behalf of the Government of Malta and Arzu Azimov and Emil
Bayramli appearing on behalf of Socar Trading SA. The FIAU is informed that this is the onlyagreement in relation to the whole energy project to which Dr Mizzi (on behalf of the
Government of Malta) is directly party.
The agreement states that;
–
–
–
Electrogas Malta Limited is in the process of building a combined gas and power plant
in Malta to supply gas and electricity to Enemalta.
In turn Enemalta will be dependent upon Electrogas Malta Limited for the supply of
gas and electricity.
Electrogas Malta Limited will in turn be dependent upon Socar Trading SA for the
supply of liquefied natural gas for Enemalta for the use both in the natural gas
network as well as to generate electricity.
As a result of this agreement, Socar Trading SA and Electrogas Malta Limited, and Electrogas
Malta Limited and Enemalta entered into long-term supply agreements that achieve certainty
of supply for LNG, gas and electricity. The agreement further stipulates an obligation on
Socar Trading SA to continue supplying LNG to Enemalta even “in the event of circumstances
that would otherwise permit Socar Trading SA to cease supplying Enemalta.
This Agreement shall come into full force and effect on the date of signature by all parties
and shall continue in full force and effect until 10 years from the date on which SOCAR first
supplies LNG to Enemalta. The agreement made available to the FIAU shows Dr Konrad
Mizzi’s signature as having been signed on the 14 th of April 2015, however there is no date
beneath the signatures of Arzu Azimov and Emil Bayramli.
This Agreement also makes reference to the Enemalta-LNG SPA Direct Agreement dated 13 th
April 2015 whereby the obligations and liabilities of the Paties pursuant to this Agreement
(dated 14 th April 2015) will not be affected by, amongst others, any novation of the LNG SPA
executed pursuant to the Enemalta-LNG SPA Direct Agreement.
It is pertinent to note that this agreement appears to have been tampered with, and does not
appear to be the original. This is due to the following anomalies which have been noted;
–
–
–
Although the contract has a table of contents with reference to pages, there are no
page numbers on the individual pages of the contract;
All the pages covering clauses 1 to 22 have only one signature despite this contract
having 3 involved parties, namely Dr Konrad Mizzi, Arzu Azimov and Emil Bayramli;
The text in this contract does not appear to be original but appears to have been “pdf
scanned” from another document given that a number of words appear to have been
electronically converted from a photocopied image to word by use of software such
as a PDF converter.It was also noted that this agreement was not amongst those published by the Government
and at no point in this agreement was any reference made to the cost or the sum due for the
services/products being provided to the various parties in the agreement.
14 th April 2015 – The side letter
The parties to this side letter are Enemalta plc, Electrogas Malta Limited, Gasol Malta
Limited, GEM Holdings Limited, Siemes Project Ventures GmbH and Socar Trading SA. The
parties Gasol Malta Limited, GEM Holdings Limited, Siemens Project Ventures GmbH and
Socar Trading SA are collectively referred to as the promoter while Electrogas Malta Limited
is referred to as the Company.
The letter further states that following a call for tenders issued by Enemalta plc, the
promoter was selected to supply electricity and natural gas to the Company. Reference is
also made to the Share Purchase Agreement dated 9 th May 2014 between Enemalta
Corporation as the Transferor and Gasol plc, GEM Holdings Limited, Siemens Project
Ventures GmbH, Socar Trading as the Transferees and Malta Power and Gas Limited as the
Company (Appendix 8.9) (this company’s name was changed to Electrogas Malta Limited on
11 th June 2014).
This side letter also makes reference to the “Supply Agreements”, namely an Implementation
Agreement, a Gas Supply Agreement and a Power Purchase Agreement (Appendix 8.23)
14 th April 2015 – Delimara 4 – Minimum Functional Specifications updated with agreed EPC 1
Clarifications and Deviations.
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
14 th April 2015 – Enemalta and Electrogas Malta Limited – Site Services Agreement.
This agreement was amongst those contracts published on 14 th February 2017. It is pertinent
to note that, although the published version does not have many redacted versions, large
sections of the original document have been omitted completely. Appendix 811 is the version
of this agreement as published while Appendix 8.12 is a copy of the version obtained by the
FIAU.
The parties to this agreement are Enemalta plc and Electrogas Malta Limited. The agreement
states that:
i)
ii)
iii)
Enemalta plc controls and operates the Delimara Site;
Electrogas Malta Limited acquired from Enemalta plc an area forming part of the
Delimara Site by title of sub-lease;
Electrogas Malta Limited requires the provision of Services in relation to the
Facilities; andiv)
Enemalta plc is willing to provide the services to Electrogas Malta Limited in
accordance with the terms and conditions of this agreement.
The agreed interest rate in this agreement was quoted as being 3 month EURIBOR plus 3%.
This information was redacted in the version of this agreement which was published.
Other information which was not included in the published version of this agreement are;
Schedule A – Services (pg 19-52), Schedule B – Services Levels (pg 55-62), Schedule C –
Charges (pg 63-64) and Schedule F – Drawings (pg 68-96).
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Electricity Connection
Agreement.
This agreement was amongst those contracts published on 14 th February 2017. It is pertinent
to note that, the published version has a couple of redacted sections. In addition this
published version of the agreement has sections which have been omitted. Appendix 8.13 is
the version of this agreement as published while Appendix 8.14 is a copy of the version
obtained by the FIAU.
The parties to this agreement are Enemalta plc and Electrogas Malta Limited. The agreement
states that:
i)
ii)
iii)
iv)
Electrogas Malta Limited wishes to install and operate Delimara 4 at the Leased
Premises;
Electrogas Malta Limited has obtained, or is in the process of obtaining, a license
from the Malta Resources Authority to produce electricity from Delimara 4 and
wishes to connect to the Network in order to sell electricity to Enemalta;
Enemalta plc is designated as the distribution system operator for Malta pursuant
to the Electricity Regulations;
Enemalta plc and Electrogas Malta Limited have entered into a power purchase
agreement of even date pursuant to which Enemalta has agreed to purchasev)
electricity produced to Electrogas Malta Limited from Delimara 4, subject to the
terms and conditions stated therein (the “Power Purchase Agreement”); and
Electrogas Malta Limited has applied to Enemalta for, and Enemalta has agreed
to, the Connection of Delimara 4 to the Network at the Connection Point subject
to the terms set out in this agreement.
The agreed interest rate in this agreement was quoted as being 3 month EURIBOR plus 3%.
This information was redacted in the version of this agreement which was published. In
addition, details were redacted in relation to the fees payable by Electrogas Malta Limited to
Enemalta plc. The agreement obtained by the FIAU states that “Electrogas Malta Limited
shall, in consideration for Enemalta performing its obligations in accordance with this
Agreement, pay a one-time charge of two hundred and fifty thousand Euro (€250,000) on the
Commencement Date and shall thereafter also pay the sum of two thousand Euro (€2,000)
per month for the duration of the Term.”
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Gas Supply Agreement
This agreement was amongst those contracts published on 14 th February 2017. Appendix
8.41 is the version of this agreement as published while Appendix 8.42 is a copy of the
version obtained by the FIAU.
It has been noted that the sections of this agreement which were redacted in the published
version relate to terms of payments and charges due.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Implementation Agreement
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
14 th April 2015 – Enemalta plc and Electrogas Malta Limited – Power Purchase Agreement
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
14 th April 2015 – Enemalta – Company’s Gas Facilities – Minimum Functional Specifications
A copy of this agreement has been obtained by the FIAU and can be provided should this be
required.
18 th April 2015 – Dr Mizzi’s official credit card activity places him in Shanghai till 20 th April
2015. It was noted that on the 23 rd and 24 th of April 2015, Dr Mizzi was in London before
heading back to Shanghai on 25 th April 2015 till 3 rd May 2015.5 th May 2015 – BTI Management Limited issue an Engagement Letter to Dr Konrad Mizzi
(Appendix 8.34)
Information obtained by the FIAU indicates that this document has been fabricated to
coincide and substantiate requests and claims made following the revelations of the Panama
Papers. Such a suspicion is raised given that email communication dated 23 rd October 2014
shows Mr Karl Cini communicating with Mossack Fonseca (New Zealand) with references
being made to a sample trust deed and information relating to the opening of a bank
account. In addition to this Dr Konrad Mizzi himself stated that he sought management
advice in 2014.
http://www.maltatoday.com.mt/printversion/62554/#.WL_bCm8rKpo
In light of the above information, having an engagement letter dated 5 th May 2015 does not
make sense when one views the entire chain of events.
8 th May 2015 – A transaction for AED 2,000 (€492.10) on Dr Konrad Mizzi’s account number
011-100815-001 indicates his presence in Dubai.
16 th May 2015 – It was at this point that Mr Karl Cini revealed to Mossack Fonseca & Co.
(New Zealand) that he had more than one client who was interested in setting up a New
Zealand Trust. Once Mossack Fonseca & Co. (New Zealand) realized that both clients were
PEPs, which was by 24 th May 2015, the process was slowed down with the need for more due
diligence. This information was obtained through open source information since this
information was not included in the documentation provided by Mr Karl Cini.
http://www.afr.com/news/policy/foreign-affairs/the-panama-papers-new-twist-to-maltas-
mossack-fonseca-bank-saga-20160418-go92hv23 rd May 2015 – An email was sent from Mr Karl Cini to Mossack Fonseca & Co. (New
Zealand) in relation to the New Zealand Trust. In this email Mr Cini asks whether if they had
to provide a professional reference letter, would Mossack Fonseca still require 2 bank
reference letters. In this communication Mr Cini states that “it is not common to have more
than one bank and my clients would like to avoid informing their banks here”.
It is pertinent to note that this email was obtained through
https://www.timesofmalta.com/articles/view/20170226/local/fact-checking-konrad-mizzis-
fake-news-claims.640721. This begs the question as to why this correspondence was not
included in the documentation provided by Mr Karl Cini following a request by the FIAU to
provide all exchanges, correspondence and instructions made in relation to the structures set
up by Dr Konrad Mizzi and Mr Keith Schembri.
Of further suspicion is the fact that Mr Karl Cini informed Mossack Fonseca & Co. (New
Zealand) that “it is not common to have more than one bank” which is not the case, given
that most people in Malta tend to have bank accounts with at least 2 different domestic
credit institutions. Also, suspicion is raised further given that the “clients would like to avoid
informing their banks here.”
In fact at the time of this communication, Mr Konrad Mizzi had been a client of HSBC for just
under 14 years and a client of BOV for almost 2 years.
7 th June 2015 – The Sunday Times of Malta reveals an €88 million state guarantee to
Electrogas.
https://www.timesofmalta.com/articles/view/20150608/local/government-confirms-state-
guarantee-to-electrogas-is-unique.571668
14 th June 2015 – Dr Konrad Mizzi’s official credit card activity places him in Montenegro till
the 16 th June 2015.It is pertinent to note that upon his return from Montenegro (i.e. 16 th June 2015), Dr Mizzi
signed the Source of Funds / Wealth Declaration Form (Appendix 8.3) which was
subsequently sent to Mr Luis Quiel by Mr Karl Cini on the following day. This declaration form
identified Dr Mizzi’s source of funds / wealth as being personal assets and proceeds from
business trade.
17 th June 2015 – An email to Mr Luis Quiel was found from WeTransfer.com. The subject of
the email being [email protected] has sent you a file via WeTransfer. The files sent with a
total of 1.4MB bore the titles – “KS – change of UBO.zip” and “KM – change of UBO.zip”.
Amongst the documents sent was a Source of Funds / Wealth Declaration Form dated 16 th
June 2015 whereby Dr Konrad Mizzi declared that the origin of funds in HEARNVILLE INC.
would be personal assets and proceeds from business trade (Appendix 8.3).
26 th June 2015 – Mr Juan Carlos Martinez who is an executive assistant with Mossack Fonseca
& Co. (Panama) provided Mr Karl Cini with draft copies of the declarations for HEARNVILLE
INC. and TILLGATE INC. (which is Mr Keith Schembri’s company). Mr Martinez also asked Mr
Cini to confirm the name of the company’s beneficial owners. On the same day Mr Karl Cini
confirmed that Dr Konrad Mizzi is the ultimate beneficial owner of HEARNVILLE INC.
2 nd July 2015 – Mr Karl Cini emailed Mr Luis Quiel asking if the latter has any update on the
change in UBO of the 2 companies.
3 rd July 2015 – Following the email to Mr Quiel on the 2 nd July 2015, Mr Martinez replied
stating that they are in the process of obtaining the signature of the Director of ATC
Administrators Inc. and Mr Cini will be provided with a duly signed Declaration of Beneficial
Owner by 9:00am the following day (Panama time). In fact another email was sent on the
same day from Mr Martinez to Mr Cini stating “Please find attached the signed Declarations
for each person” (Appendix 8.15).
On this same day an email from Mr Daniel Leon, executive assistant at Mossack Fonseca &
Co. (Panama), was sent to Mr Karl Cini asking for a call back.7 th July 2015 – Following an unsuccessful callback from Mr Cini, a chain of emails between Mr
Leon and Mr Cini ensued (Appendix 8.16).
Mr Leon emailed Mr Cini stating the following; “What I wanted to re-confirm with you is the
matter relating to the shareholder for HEARNVILLE INC. and TILLGATE. Do you need that the
shares of the companies be now issued in the names of the settlors so that they can
themselves give them in trust after that? Is this right?”
Mr Cini replied stating that the settlors of the trusts are already the UBOs of the two
companies.
Mr Leon replied stating that;
It is pertinent to note that this communication, indicates that since the companies were set
up in July 2013, ATC Administrators Inc. held the shares in the company HEARNVILLE INC. on
behalf of the UBO, Dr Konrad Mizzi given the statement “Yes Karl, they are the real UBOs, but
the shares are currently held by a nominee shareholder.”
This contradicts what Dr Mizzi claimed on 26 th February 2016 whereby he stated “Il-
kumpanija, just to biex inehhi misgivings hadtha over jiena fil-2015, fis-sajf tal-2015 and it
was included in the trust. Kienet shell 4 company, kien hemm kummenti li kienet issetjata
qabel, iva, din hija shell company li jissetjawhom u jbieghhom as a going concern. Ma kien
hem xejn fija fin il-kumpanija jigifieri la ghandha assi bhalissa, la ghandha liabilities, la
ghandha bank accounts, m’hemm l-ebda flus…”
This statements can be access through https://daphnecaruanagalizia.com/2016/02/76957/
4
Although Dr Mizzi referred to the company as being a shell company, in actual fact he is
referring to a shelf companyFurthermore, the FIAU requested information on 2 nd March 2016 whereby Nexia BT, BT
International Ltd, BT Advisory Services Ltd, Nexia BT Consulting Ltd and BTI Management Ltd,
namely Mr Karl Cini in his capacity as Money Laundering Reporting Officer, were requested
to provide the FIAU with, amongst others, “all instructions made to Mossack Fonseca and to
the Orion Trust in relation to the services provided to the Clients, all correspondence sent on
behalf of the Clientw and, more broadly, all exchanges, correspondence and instructions
made to Mossack Fonseca and to the Orion Trust in connection with the setting up and the
administration of the companies HEARNVILLE INC., TILLGATE INC. and the trusts named the
ROTORUA TRUST and the HAAST TRUST.” A subsequent request for information by the FIAU
dated 13 th April 2016, highlights the fact that in a reply dated 14 th March 2016, Nexia BT et al
failed to provide, amongst others, “All exchanges, correspondence and instructions made to
Mossack Fonseca in connection with the setting up and administration of the companies
HEARNVILLE INC. and TILLGATE INC.”
In a letter of clarification dated 20 th April 2016, Mr Karl Cini obo Nexia BT claimed “It appears
that there has been a misunderstanding regarding the nature of the information you have
requested from us during the meeting held on 2 nd March 2016. The verbal request made
during this meeting was interpreted by us to be limited to the period starting from when the
Clients took ownership of the companies HEARNVILLE INC. and TILLGATE INC. From our
discussions during the said meeting, we did not infer that your verbal request also extended to
the initial setting up and administration of these companies, prior to the Clients taking over
the respective ownership, and hence, at the time, we had compiled the information
accordingly.”
The communication shows attempts made by Nexia BT to conceal from the FIAU the fact that
the companies belonged to Dr Konrad Mizzi and Mr Keith Schembri from the start as is
indicted in the email between Mr Daniel Leon and Mr Karl Cini on 7 th July 2015.
10 th July 2015 – a transfer of €200,000 (USD 179,243.59) was attempted on 10 th July 2015 by
Orion Engineering Group in favour of the UAE registered company 17 BLACK LIMITED. This
transaction was not successful due to the transaction not being in line with the
correspondent’s bank internal policies. The correspondent bank used in this transaction was
Deutsche Bank Trust Company Americas. More information in relation to these companies is
provided in sections 5.2 and 5.3 of this report.17 th July 2015 – Mr Martinez sent an email to Mr Karl Cini confirming that the change of
ownership of HEARNVILLE INC. and TILLGATE INC. was done. The same email gave
instructions to issue the shares of HEARNVILLE INC. in favour of Orion Trust (New Zealand)
Limited as Trustee of ROTORUA TRUST.
18 th July 2015 – Dr Konrad Mizzi’s official credit card activity places him in Istanbul, Turkey
followed by Montenegro on 22 nd July 2015 and Shanghai on 30 th July 2015.22 nd July 2015 – Gasol (Malta) Limited transferred its interests in Electrogas Malta Limited to
GEM Holdings Limited, Socar Trading SA and Siemens Projects Ventures GMBH (Appendix
8.17). On the same day HEARNVILLE INC. was transferred to the ROTORUA TRUST (Appendix
8.19).
23 rd July 2015 – The transfer of €200,000 (USD 181,851.25) which was attempted on 10 th July
2015 was successfully carried out by Orion Engineering Group in favour of the UAE registered
company 17 BLACK LIMITED. The correspondent bank used in this transaction was Bank of
America. More information in relation to these companies is provided in sections 5.2 and 5.3
of this report.
It is interesting to note that the transaction which was attempted on 10 th July 2015 bore a
reference to “manpower for Q4002”, however, the transaction which was carried out on 23 rd
July 2015 simply bore the reference of an invoice number 20151001.
27 th July 2015 – Open source information indicates that Gasol sold its interest in Electrogas
Malta Limited. https://www.lngindustry.com/liquid-natural-gas/27072015/gasol-sells-
interest-in-malta-lng-project-1068/
4 th August 2015 – Mr Martinez emailed Mr Cini with a list of attached documents in relation
to the 2 companies. Mr Martinez also asked Mr Cini to provide an address where the original
documentation should be delivered.
5 th August 2015 – Mr Karl Cini informed Mr Luis Quiel that they are in the process of opening
a bank account in Dubai for two of their Panamanian companies, the companies being
HEARNVILLE INC. and TILLGATE INC. The email goes on to state that a number of documents
will need to be attested from the UAE Embassy in Panama and will then be attested further in
Dubai. In this respect, Mr Cini asked Mr Quiel if the latter would be able to assist.12 th August 2015 – The Government announces extension of state guarantee to Electrogas to
€360 million.
Attempts to access this link on 22 nd March 2017 proved unsuccessful however other open
sources make reference to the same announcement.
https://daphnecaruanagalizia.com/2015/08/the-latest-shocker-government-guarantees-
another-electrogas-malta-bank-loan-up-to-e360m/
http://www.maltatoday.com.mt/news/national/56118/busuttil_condemns_guarantee_musc
ats_personal_interest_overrides_national_interest
http://www.independent.com.mt/articles/2017-02-22/local-news/Government-refuses-to-
divulge-Electrogas-loan-maximum-liability-6736170736
http://www.maltatoday.com.mt/news/national/56359/pn_wants_power_station_audit_exte
nded_to_include_new_state_guarantee#.Wh0vhbQ-cWo
On the same day SOCAR Group sold newly issued shares of Socar Turkey Enerji A.S.
The full report can be accessed through http://socar.az/socar/assets/documents/en/socar-
financial-reports/Financial%20report%202015.pdf
19 th August 2015 – An email from Mr Cini to Mr Martinez and Mr Quiel confirmed that the
only change that can be made to the trusts is to make them revocable.20 th August 2015 – Mr Karl Cini sent a reminder to Mr Juan Carlos Martinez in relation to the
required attested company documentation.
20 th August 2015 – Mr Cini informed Mr Martinez and Mr Quiel that he will be meeting the
beneficial owners “this coming Tuesday” (which was the 25 th August 2015) and would like to
have finalized scanned copies of the trust deeds by then to be able to show to the respective
owners.
On the same day, Mr Karl Cini sent an email to Mr Quiel and Mr Martinez whereby he
attached preliminary KYC documentation for the purposes of opening bank accounts in
Panama. In this communication Mr Cini also gave instructions to Mr Quiel to provide these
documents to the bank should they be requested.
21 st August 2015 – In a chain of emails all dated 21 st August 2015, Mr Martinez asked Mr Cini
whether legalization by the Syrian Embassy would still be acceptable as there is no UAE
Embassy in Panama. Mr Martinez explained that the closest UAE Embassy is in Colombia
therefore the documents could either be attested in the Syrian Embassy in Panama or have
the documents sent to the UAE Embassy in Colombia.
On the same day Mossack Fonseca & Co. (New Zealand) sent an email to Mr Karl Cini with
attached copies of the signed Trust Deeds. In this email concerns were raised in relation to
negative coverage regarding the tender process for supply of paper to the government. As a
result Mr Cini was asked to provide more detailed information about the source of funds to
be settled on each trust and also to elaborate further on the activities of the underlying
companies as reference to “management consultancy and brokerage” was not a sufficient
explanation.
21 st August 2015 – Mr Martine confirmed to Mr Cini that the documents were received and
information was sent to the bank in order to start the account opening process in Panama.
24 th August 2015 – In an email from Mossack Fonseca & Co. (New Zealand) to Mr Karl Cini,
concerns were raised in relation to the negative publicity regarding the amount of
remuneration of Dr Konrad Mizzi’s wife, Mrs Sai Mizzi Liang. As a result details of enquiries
made in relation to this were requested as well as information which was previously
requested.
25 th August 2015 – Mr Cini confirmed that the attestation by the Syrian Embassy would not
be accepted and instead requested the original documents to be sent to Malta via express
courier. In a subsequent email dated 25 th April 2015, Mr Cini further confirmed that the
documents are required in original format and the client will get them to the bank directly in
original (Appendix 8.4).
It is pertinent to note that Dr Konrad Mizzi’s official credit card activity placed him in Dubai
on 27 th August 2015.26 th August 2015 – Mr Martinez emailed Mr Cini confirming that the documents were sent by
FEDEX. The email also states that the tracking number was attached to the email.
27 th August 2015 – As indicated earlier, Dr Mizzi’s official credit card activity places him in
Dubai on 27 th August 2015 and Germany on the 13 th September 2015.
28 th August 2015 – An email from Mossack Fonseca & Co. (New Zealand) to Mr Karl Cini was
sent in relation to the requested details for the HAAST TRUST and ROTORUA TRUST including
details in relation to Mrs Sai Mizzi Liang’s remuneration. On the same day Mr Cini advised he
will be compiling explanations for the queries made by “beginning of next week” following a
“meeting with the beneficial owners earlier this week.”
28 th August 2015 – Email from Mr Karl Cini to Mr Juan Carlos Martinez at 5.15am (local time)
– Email not included in information provided to FIAU.
28 th August 2015 – Email from Mr Juan Carlos Martinez to Mr Karl Cini stating “Please find
attached the documents for HEARNVILLE INC.”29th August 2015 – Mr Karl Cini replied to Mossack Fonseca & Co. (New Zealand with the
following:
It is pertinent to note that his reply in relation to Mrs Sai Mizzi Liang’s remuneration is taken
directly from the media. This would therefore indicate that no actual checks/enquiries were
carried out into the allegations but rather Cini quoted a reporter’s article in order to satisfy
CDD requirements for the New Zealand trust.The same email went on to provide the following information in relation to open source funds
for the ROTOUA TRUST:
In relation to information about the activities of the underlying entities, Mr Cini reported that:
It is pertinent to note the contradiction in “from a commercially sensitive perspective they
cannot appear as direct shareholders..” however email goes on to state that “under our
legislation, PEPs are openly allowed to hold shareholding in other business”.
30 th August 2015 – Mr Karl Cini sent an email to Mr Juan Carlos Martinez asking if there is an
update on the account opening process in Panama for both companies. It is pertinent to note
that this email was sent on Sunday at 5:06AM (local time).
3 rd September 2015 – Open source information reported that Dr Konrad Mizzi had a meeting
which lasted approximately 1 hour and 15 minutes at Whitehall Mansions.
http://netnews.com.mt/2015/09/03/filmat-konrad-mizzi-skomdu-quddiem-il-kameras-wara-li-
johrog-minn-laqgha-sigrieta/
It is pertinent to note that Whitehall Mansions houses, amongst others, the offices of Pilatus
Bank plc and SEP (Malta) Holding Limited.
10 th September 2015 – Mr Martinez replied to Mr Cini’s email stating that FPB Bank decided
not to proceed with the opening of an account for the two companies mainly due to the fact
that the ultimate beneficial owners of both companies were PEPs. The email went on to explain
that contact was made “with two persons who will help is with these bank accounts. We have
sent the passport of the UBOs and they are checking the results on world check, and then they
will provide us with a response regarding the opening of these accounts.”It is pertinent to note that this bank was the subject of an investigation by the Brazilian Police
after it allegedly worked closely with the “Panama Papers Lawfirm”.
http://www.reuters.com/article/us-brazil-corruption-idUSKCN0ZN1CU
11 th September 2015 – Mr Leon sent an email to Karl Cini informing him of two banks in the
Caribbean which have no restrictions in opening accounts for PEPs. These banks were
identified as the Bank of Saint Lucia International and Winterbotham Bank.
12 th September 2015 – Mr Cini confirmed that while he provided his clients (namely Mr
Schembri and Dr Mizzi) with the information, he would also await a reply from the “Panama
Banks”. Mr Cini also asked for “a time indication of opening accounts should:
 Panama banks give go ahead
 Banks mentioned below give go ahead”
11 th September 2015 – Mr Martinez emailed using the subject “Opening of bank
account/2461974/2461975/LQ/jcm”. In his communication, Mr Martinez informed Mr Cini
that three banks were found which were willing to open accounts in the name of the
companies which have PEPs as beneficial owners. These banks all had their respective
conditions as outlined below:
 Itau (Miami): At least 2 year ceased functions as PEP, and the minimum initial deposit
is $1M;
 BSI (Panama): the minimum initial deposit is $1M;
 Brickell Bank (Miami): the minimum initial deposit is $1M.
Mr Martinez informed Mr Cini that contract was also made with Boslil Bank who declined the
banking relationship citing lack of resources. In addition Mr Martinez confirmed that Mossack
Fonseca & Co. (Panama) contacted Winterbotham Bank and Cidel Financial Group, both of
which were yet to confirm whether they can accept the clients in question.
15 th September 2015 – Dr Konrad Mizzi’s personal and official credit card activity places him in
Moscow.16 th September 2015 – Mr Martinez asked Mr Cini to provide the purpose for the bank accounts
in question as well as an estimated amount of the deposits which will be made to each account.
17 th September 2015 – Mr Cini confirmed that the account will be operating account of the
Panamanian company and estimated yearly deposits will be of €350,000. In this
communication Mr Cini also informed Mr Martinez that he will send the companies’ intended
operations in due course. It is pertinent to note that this communication was sent on Thursday
at 8:22AM (local time).
22 nd September 2015 – A reminder was sent by Mr Martinez to Mr Cini in relation to the
purpose of the bank accounts and operations/activities of the companies. This email was sent
at 00:51AM (local time).2 nd October 2015 – Dr Konrad Mizzi’s personal credit card and official credit card activity places
him in South Korea.
4 th October 2015 – Dr Konrad Mizzi’s official credit card activity paces him in Shanghai.
17 th October 2015 – Following previous emails to Mr Karl Cini in relation to the purpose of the
bank accounts the operations/activities of the companies, Mr Cini informed Mossack Fonseca
& Co. (New Zealand) that the Panamanian companies will be used as holding companies for
operations conducted in the sectors of Recycling and Remote Gaming.It
is
pertinent
to
note
that
this
email
was
obtained
through
https://www.timesofmalta.com/articles/view/20170226/local/fact-checking-konrad-mizzis-
fake-news-claims.640721 and was not included in the documentation provided by Mr Karl Cini
in his capacity as MLRO following the relevant request for information by the FIAU.
Given that Mr Keith Schembri is the one with the more experience in the aforementioned
industries, one is lead to believe that Dr Konrad Mizzi and Mr Keith Schembri were setting up
the structures as a joint venture. This suspicion is further substantiated by the fact that the
timing of the events indicate that the Panama/New Zealand structures created for Dr Mizzi and
Mr Schembri were created simultaneously and both persons were working in tandem. This fact
is in itself suspicious given that these structures are typically created on the basis of one’s
individual circumstances and not with a one-size-fits-all approach.
Information being obtained through http://www.afr.com/news/policy/foreign-affairs/the-
panama-papers-new-twist-to-maltas-mossack-fonseca-bank-saga-20160418-go92hv further
states that “On October 17 Mr Cini reported that TILLGATE and HEARNVILLE would have a ‘part
stake’ in recycling and remote gaming companies. Mr Cini gave no details as to who their
partners would be in these ventures.”
Furthermore, it is interesting to note that on the basis of the information obtained by the FIAU
this is the first time Mr Cini have any indications that the Panama companies will be used ad
holding companies for operations conducted in the sectors of recycling and remote gaming
with no mention of personal assets.This coincides with the time 3 different banks were willing to consider opening accounts for
these companies all requested an initial deposit of $1M (15 th September 2015). These events
lead to the suspicion that Mr Cini mentioned these 2 sectors as being the source of funds given
that both are known to generate large sums of money, whereas Dr Mizzi’s statement of
preservation of family assets would not justify the receipt of such large sums.
22 nd October 2015 – Dr Konrad Mizzi’s official credit card activity places him in Serbia
It is pertinent to note that 5 days later, an agreement was signed between the State of
Montenegro, Consortium Fersa & Celebic, Mozura Wind d.o.o. and Enemalta plc which
ultimately saw the Spanish Consortium transferring its shares in Mozura Wind Park d.o.o. to
Enemalta plc.
27 th October 2015 – Agreement on transfer of the agreement on land lease and construction of
wind power plant (Written in English and Montenegrin).
A timeline of event as listed in this agreement shows the following:
 05/07/2010 the state of Montenegro and the Investor Consortium entered into a land
lease and construction agreement for building a 46 MW Wind Power Plant on the Site
of Mozura
 05/11/2010 new planning documents and specifications were issued by the State of
Montenegro
 07/06/2013 – The final date of issue of the “innovated urban-technical conditions were
issued”
 15/12/2014 – the building permit was issued
 15/02/2015 the investor, namely Consortium Fersa & Celebic began construction work 02/02/2015 the investor submitted a request to the State of Montenegro to transfer
the lease agreement to Enemalta. This request was accompanied with “evidence” that
the assignee satisfies the conditions set out on the 24/12/2009 for the designing,
construction, use and maintenance of the Wind Power Plant
 During the sessions dated 03/09/2015 and 24/09/2015 the Government of
Montenegro gave its consent to the said lease transfer
 Due to the change of investor the period defined in the lease agreement was extended
by a further 15 months
This transfer raises a number of questions including the reason as to why the investor, namely
Consortium Fersa & Celebic submitted a request to the State of Montenegro to transfer the
lease agreement to Enemalta on 2 nd February 2015 but began construction work on 15 th
February 2015.
In addition to the above, it has also been noted that negotiations in relation to this project
commenced in July 2010 with the required planning documents being issued by November of
that same year. However, for reasons unknown to the FIAU, the project got going in 2014
which is when the building permit was issued. Less than 2 months following the issue of the
building permit the original investor withdrew from this Agreement and transferred its shares
in the subsidiary company Mozura Wind Park d.o.o. to Enemalta plc.
In relation to this, open sources claim that Enemalta plc won the contract for the wind farm
following failure of talks between the Spanish Consortium and the Government of
Montenegro.
https://www.tvm.com.mt/en/news/enemalta-wins-contract-for-wind-farm-plant-in-
montenegro/
5 th November 2015 – Mr Karl Cini sent an email to Mossack Fonseca and Co. (New Zealand)
with additional information in relation to the beneficial owners’ past history, the proposed
business of the underlying structures of the trust and Mrs Sai Mizzi Liang’s appointment
(Appendix 8.5)
It has been noted that information provided in this email contradicts information provided in
the email dated 29 th August 2015. The letter communication stated that “both KS and KM will
be involved as shareholders in a structure that is totally not related to their areas of work.”
However the information provided on 5 th November 2015 states that future business plans for
the underlying entities of the trust include trading of plastic, paper and aluminum recycling,
trading in used tyres and waste trading.This communication from Mr Kark Cini also states that “the UBO was also partner and head of
the energy and infrastructure practice for the EMEA region (Europe, Middle East and Africa)
with PCubed, a global leader in projects delivery. He set up the practice and developed major
account with personal revenue amounting to GBP 5 Million”.
11 th November 2015 – Agreement between Enemalta and Montenegro on wind farm
construction. Enemalta submits €1.5 million bank guarantee.
Attempts to access this link on 22 nd March 2017 proved unsuccessful.
13 th November 2015 – Dr Konrad Mizzi’s personal credit card activity places him in
Montenegro.
It pertinent to note that these are the only transactions that appear to have been carried out
using bank cards during this trip to Montenegro. Of further interest is the fact that;
i)
The card used is a personal card;ii) The transaction which have been processed are only for €0.01 which means that
these were carried out in order to ensure that the card is valid;
iii) An agreement had just been signed 2 day earlier between Malta and Montenegro
which therefore raises the question as to why Dr Mizzi refrained from using his
official card during this trip. Furthermore, the lack of card usage during this trip
indicates that this was likely a cash based trip.
20 th November 2015 – Dr Konrad Mizzi’s official credit card activity places him in Turkey.
2 nd December 2015 – An email from Karl Cini to Adrain Dixon gave instructions to “go ahead
and start the opening of the accounts for those 2 Panama companies.”
It
is
pertinent
to
note
that
this
email
was
obtained
through
https://www.timesofmalta.com/articles/view/20170226/local/fact-checking-konrad-mizzis-
fake-news-claims.640721 and was not included in the documentation provided by Mr Karl Cini
in his capacity as MLRO following the request for information by the FIAU.
10 th December 2015 – Mr Juan Carlos Martinez informed Mr Cini of the information required
to fill out the bank forms. The list included, amongst others, the current assets of the companyin US $, last reported earning, main clients and suppliers, detailed purpose of the account,
number and amount of monthly transactions. It was also noted that the subject line of this
email read “TILLGATE INC./2461974/HEARVILLE INC./2461975/LQ/jcm”(Appendix 8.6)
13 th December 2015 – As a follow up to the email Mr Cini sent to Mossack Fonseca & Co. (New
Zealand) on 5 th November 2015, Mr Karl Cini asked whether the information provided was
sufficient and if so he could provide the same information on a signed letter. A reply was
received on the same day saying that the information had already been sent to the New
Zealand Director. The email also included an attached Fiduciary Service Agreement which
needed to be signed by Konrad Mizzi.
Further information in relation to the aforementioned Fiduciary Service Agreement is provided
in Section 3.6 of this report.
14 th December 2015 – Mr Luis Quiel, who is a lawyer at Mossack Fonseca & Co. (Panama),
advised Mr Cini that BSI Bank was recently sold to a Colombian Bank. The communication
further stated that due to recent changes clients who are not applying for immigration Visas in
Panama won’t be able to open accounts there.
15 th December 2015 – Mr Luis Quiel informed Mr Karl Cini that contact had been made with
Brickell Bank in Miami, However they refused to open the requested bank accounts.
17 th December 2015 – In an email addressed to Mr Martinez, Mr Karl Cini provided an overview
of the purpose of the accounts and the operations/activities of the companies (Appendix 8.7).
19 th December 2015 – Dr. Konrad Mizzi’s official and personal credit card activity places him in
Shanghai till 4 th January 2016.22 December 2015 – The company International Energy Service Centre Limited is incorporated
in Malta. Further information in relation to this company is provided in Section 3.4 of this
report.
12 th January – Open sources indicate that Dr Konrad Mizzi and Prime Minister Dr Joseph Muscat
visited Mozura site in Montenegro which is to be used to build wind farms.In corroboration with this information, Dr. Konrad Mizzi’s official credit card activity places him
in Montenegro.
20 th January 2016 – An email from Mr Karl Cini to Mr Daniel Leon, who is an executive assistant
at Mossack Fonseca & Co. (Panama), shows continued attempts to open bank accounts with
Winterbotham Bank, with Mr Cini asking as to what additional requirements the bank has. A
reply to this effect was sent on 25 th January 2016.
25 the January 2016 – Mr Juan Carlos Martinez sent Mr Karl Cini an extensive list of the required
documents to open a bank account with Winterbotham Bank as well as documents required
for customer due diligence purposes as well as any individual authorized signatories, Directors
and Officers. In spite if the information provided by Mr Cini on 17 December 2015 in relation
to the companies’ operations/activities, this communication requested, in relation to
HEARNVILLE INC., “specific activity that the company carry on” and “specific countries where
the company carry on the activities”. The communication went on to specify that “if the
company will be carryon in a recycle business, please inform what are the recycling materials
and the purpose of the recycling. If the company will carry on with activities in Asia, please
confirm the specific countries of Asia continent in order to inform the bank. If the company
will carry on with marine and fishing activities, please provide examples of those activities.” In
addition documentation relating to the ROTURUA TRUST was also requested.
25 th January 2015 – An email from Mr Quiel was sent at 23:37PM (local time) information Mr
Cini that due to the “ton of work” in relation to the account opening procedure fees due to
Mossack Fonseca & Co. (Panama) should be discussed at this stage. The email goes on to
specify that despite the previously agreed price of USD5,000 per bank account Mossack
Fonseca & Co. (Panama) proposed a new price of USD4,500 per account.
26 th January 2016 – Mr Karl Cini replied to Mr Quiel stating that the price of USD4,500 per
account is understandable and to proceed at this price. Mr Cini also asked for a list of
items/information required to proceed with account opening which would require the client’s
input.
12 th February 2016 – Mr Karl Cini sent an email to Mr Juan Carlos Martinez asking for an update
on the bank accounts and whether the applications had been submitted.
13 th February 2016 – Mr Martinez replied to Mr Cini with a list of documents/information which
were required to open the bank accounts. Mr Gianna Rodriguez was also copied in this emailas he was the person that would be attending to the opening of the bank accounts. The
following is a list of the requested documents/information:
 “BAF Individual BO (attached for signature)
 W-8BEN (attached)
 Business address and contact numbers (tel, fax, email), name of the employer
 Bank reference letter to Winterbotham (updated date)
 Utility bill, credit card statement or copy of Bank statement (less than 3 months)
 Financial Statements of the Company
 Annual balance of bank account, monthly in and out transfer of the account”
An email requesting the same information appears to have been sent again on 17 th February
2016 by Rodriguez to Mr Cini.
It is interesting to note that according to information obtained by the FIAU the last email which
was sent in relation to the opening of bank accounts was on 17 th February 2016. The initial
reports through open sources commenced on 22 nd February 2016.
1 st March 2016 – Open source information reported that Konrad Mizzi claimed “I’ve also
submitted myself to a tax audit which no other member of parliament has ever done. Even
though I did everything correctly, I felt that since there are a number of people who feel that I
should have a structure elsewhere and not in Panama, I decided to close down the Panama
company only after the audit is complete. At that point, we will make a decision and it will be
public”
https://newsmaltatoday.blogspot.com.mt/2016/03/nexia-bt-was-paid-for-services-
konrad.html
24 th March 2016 – Dr Konrad Mizzi’s official credit card places him in Shanghai.In addition to the lengthy exchange of above listed emails, it is pertinent to note that the FIAU
also requested Nexia BT, BT International Ltd, BT Advisory Services Ltd, Nexia BT Consulting Ltd
and BTI Management Ltd, namely Karl Cini in his capacity as Money Laundering Reporting
Officer, “to be provided with all correspondence between Nexia BT and the Clients.” To this
request Mr Cini confirmed in a communication dated 20 th April 2016 that “All instructions and
discussions with the clients were verbal. With the exception of documents that required the
Client’s signature (which documents have been provided to the FIAU), no correspondence
exists on this matter.”
It is also pertinent to note that as indicated in the timeline above, a number of contracts and
agreements involving Enemalta plc and Electrogas Malta Limited were entered into during
April 2015. This timeframe coincides closely with the period in which measures were taken to
open a bank account for HEARNVILLE INC. which according to information obtained by the
FIAU commenced on 17 th June 2015.
23 rd August 2016 – Dr Konrad Mizzi made a payment of €493.72 to BTI Management using the
reference “As per letter dated 23-8-16.” The FIAU has no further information in relation to this
letter.
9 th February 2017 – J Mossack and R Fonseca arrested in Panama. Panama’s attorney general
release statement saying that “evidence gathered by her office indicated that the law firm was
a potential criminal organization that concealed and removed evidence related to illegal
activity.”
https://www.icij.org/blog/2017/02/founders-panama-papers-law-firm-arrested-
after-raids/15 th February 2017 – Mr Brian Tonna and Mr Karl Cini turn down invitation to meet Panama
Committee
https://www.timesofmalta.com/articles/view/20170215/local/nexia-bosses-turn-down-
invitation-to-meet-panama-committee.639687
16 th February 2017 – Enemalta imposes a €10million penalty on Electrogas for power station
delays. https://www.timesofmalta.com/articles/view/20170216/local/enemalta-imposes-10m-
penalty-on-electrogas-for-power-station-delays.639817
3.4 Involvement in Enemalta plc
3.4.1 GEM Holdings Limited
GEM Holdings Limited was incorporated on 8 th May 2013 having company registration number
C603349.
The directors, legal and judicial representatives of the company are Mr Paul Apap Bologna (ID
70372), Mr Yorgen Fenech (ID 36482M) and Mr Mark Gasan (ID 74781M).
The shareholders of the company as at 21 st March 2017 are as follows:
Tumas Energy Limited (C64888)
–
360 Ordinary A class Shares
18 Ordinary C class shares
Gasan Group Limited (C29585)
–
360 Ordinary A class shares
18 Ordinary C class shares
CP Holding Limited (C49772)
– 324 Ordinary C class shares
New Energy Supply Limited (C64971) – 120 Ordinary D class shares
The auditor of the company is Nexia BT which is registered at The Penthouse, Suite 2, Capital
Business Centre, Entrance C, Triq Taz-Zwejt, San Gwann, SGN 3000.
3.4.2 Electrogas Malta LimitedElectrogas Malta Limited was incorporated on 12 th June 2013 having company registration
number C60775. This company was initially known as Malta Power and Gas Limited. At
incorporation stage its subscribers were listed as the following on the company’s
Memorandum of Association (Appendix 8.24):
i) Enemalta Corporation – 1200 ordinary A shares of €1 each, fully paid up
ii) Aviation Fuelling Services Limited (C54196) – 1 ordinary B Share of €1 each, fully
paid up. This company changed its name to MPG Energy Services Limited on 11 th
June 2013. On the same day the company’s objectives were also changed
(Appendix 8.39)
The directors, legal and judicial representatives of the company are Austrian national, Mr
Gerhard Benner (ID Card 3786940), Mr Yorgen Fenech (ID Card 36482M) and British national,
Mr Turab Musayev (ID 514641944).
The shareholders of the company as at 21 st March 2017 are as follows:
GEM Holdings Limited (C60349)
–
3,334 Ordinary shares (100% paid up)
Siemens Projects Ventures GmbH(HRB5812) – 3,333 Ordinary shares (100% paid up)
Socar Trading SA(CHE-113.990.112) –
3,333 Ordinary shares (100% paid up)
The company secretary is Mr Raymond Sladden (ID 597055M)
The auditor of the company is PriceWaterhouse Coopers which is registered at 78, Mill Street,
Qormi.
3.4.3 Tumas Energy Limited
Tumas Energy Limited was incorporated on 28 th April 2014 having company registration
number C64888.
The directors, legal and judicial representatives of the company are Mr Raymond Caruana (ID
137260M) and Yorgen Fenech (ID 36482M).
The sole shareholder of company as at 21 st March 2017 is Tumas Group Company Limited
(C7820) who holds 1,200 Ordinary shares which are 100% paid up.
The company secretary is Mr Raymond Sladden (ID 597055M).
The auditor of the company is PriceWaterhouseCoopers which is registered at 78, Mill Street,
Qormi.3.4.4 New Energy Supply Limited
New Energy Supply Limited was incorporated on 2 nd May 2014 having company registration
number C64971.
The company is a single member company in which Mr Yorgen Fenech (ID 36482M) holds
position of director, shareholder, legal and judicial representative as well as company
secretary.
The auditor of the company is Nexia BT which is registered at The Penthouse, Suite 2, Capital
Business Centre, Entrance C, Triq Taz-Zwejt, San Gwann, SGN 3000.
3.4.5 Petromal Company Limited
Petromal Company Limited was incorporated on 23 rd May 2014 having registration number
C65288.
The directors, legal and judicial representatives of the company are Mr Francis Cassar (ID Card
26862M), Mr Kevin Chirchop (ID 129170M), Mr Emanuel Ellul (ID 300037M) and Mr Mario
Zammit (ID 26655M).
The shareholders of the company as at 21 st March 2017 are as follows:
Malta Government Investments Limited (C10175) – 124,999 Ordinary shares (20% paid up)
Malta Investment Management Company Limited (C9588)- 1 Ordinary share (20% paid up)
The company secretary is Mr Andrew Sciberras (ID 244687M).
The auditor of the company is Ernst & Young Malta which is registered at 4 th Floor, Regional
Business Centre, Achille Street, Msida 1751.
3.4.6 Enemalta plc
Enemalta plc was incorporated on 1 st July having company registration number C65836.
The directors, legal and judicial representatives of the company are Stephen sive Steve Agius
(ID89271M), Mr Frederick Azzopardi (ID 152076M), Mr Kevin Chirchop (ID 129170M), Salvu
Sant (ID Card 652036M), Mr Ji Sun (ID P01746698) and Mr Gao Yongxin (ID PE0073182).
The shareholders of the company as at 21 st March 2017 are as follows:
The Government of Malta – 200,000,000 Ordinary A class shares (100% paid up)SEP (Malta) Holding Limited (C67784) – 100,000,000 Ordinary B class shares (100% paid up)
Malta Government Investments Limited (C10175) – 1 Ordinary C class share (100% paid up)
The company secretary is Mr Aaron Mifsud Bonnici (ID 18574M).
The auditor of the company is Ernst & Young Malta Limited which is registered at 4 th Floor,
Regional Business Centre, Achille Street, Msida 1751.
3.4.7 Enemed Co Limited
Enemed Co Limited was incorporated on 19 th August 2014 having company registration
number C66404.
The directors, legal and judicial representatives of the company are Mr Francis Cassar (ID
26862M), Mr Kevin Chircop (ID 29170M), Mr Emmanuel Ellul (ID 300037M) and Mr Justin
Tabone (ID 314174M).
The shareholders of the company as at 21 st March 2017 are as follows:
Petromal Company Limited (C65288) – 62,249,999 Ordinary shares (100% paid up)
Malta Government Investments Limited (C10175) – 1 Ordinary share (100% paid up)
The company secretary is Mr Andrew Sciberras (ID 244687M).
The auditor of the company is Ernst & Young Malta Limited which is registered at 4 th Floor,
Regional Business Centre, Achille Street, Msida 1751.
3.4.8 D3 Power Generation Limited
D3 Power Generation Limited is was incorporated on 29 th August 2014 having company
registration number C 66510.
The directors, legal and judicial representatives of the company are Chinese national, Sheng
Baojie (ID P1722686), Mr Ismail D’Amato (ID 358080M), Chinese national Zhou Jing (ID
P01741268) and Chinese national Chen Zhichao (ID P01360586).
The shareholders of the company as at 21 st March 2017 are as follows:
Enemalta plc (C65836)
– 16,666,666 Ordinary B class shares (100% paid up)
SEP (Malta) Holding Ltd (C67784) –
150,000,000 Ordinary A class shares (100% paid up)
Malta Government Investments Limited (C10175) – 1 Ordinary C class share (100% paid up)The company secretary is Yuanyuan Zhang (ID PE0112227)
The auditor of the company is RSM Malta which is registered at Cobalt House, Level 2 Notabile
Road, Mriehel, Birkirkara BKR 3000.
3.4.9 SEP (Malta) Holding Limited
SEP (Malta) Holding Limited was incorporated on 26 th November 2014 having company
registration number C67784.
The director, legal and judicial representative of the company is the Chinese national, Ji Sung
(ID P01746698)
The sole shareholders of the company as at 21 st March 2017 is Shanghai Electric Power and
Energy Development Limited having 9,837,900 ordinary shares which are 100% paid up. This
is a company registered in Hong Kong bearing company number 1359631.
The company secretary is Chinese national Lan Sun (ID P01755344).
The auditor of the company is RSM Malta which is registered at Cobalt House, Level 2 Notabile
Road, Mriehel, Birkirkara BKR 3000.
3.4.10 International Renewable Energy Development Limited
International Renewable Energy Development Limited was incorporated on 2 nd February 2015
having company registration number C68860.
The directors, legal and judicial representatives of the company are Mr Kevin Chircop (ID
29170M) and Chinese nationals Se Dong (ID PE0249401) and
Baojie
Sheng
(ID
PE0722686)
The shareholders of the company as at 21 March 2017 are as follows:
SEP (Malta) Holding Limited (C67784) – 4, 095,840 Ordinary A class shares (100% paid up)
Enemalta plc (C65836)
Enemalta plc (C65836)
– 1, 755,360 Ordinary B class shares (100% paid up)
The company secretary is Chinese national, Yuanyuan Zhang (ID PE0112227).
The auditor of the company is RSM Malta which is registered at Cobalt House, Level 2 Notabile
Road, Mriehel, Birkirkara BKR 3000.
3.4.11 International Energy Service Centre LimitedInternational Energy Service centre Limited was incorporated on 22 nd December 2015 having
company registration number C73682.
The directors, legal and judicial representatives of the company are Mr Henry Attard (ID
648660M), Mr Jonathan Scerri (ID 176075M) and Chinese national Yimin Xu (ID PE0603007).
The shareholders of the company as at 21 st March 2017 are as follows:
SEP (Malta) Holding Limited (C67784) – 300,000 Ordinary B class shares (100%paid up)
Enemalta plc (C65836)
– 700,000 Ordinary A class shares (100% paid up)
The company secretary is Mr Aaron Mifsud Bonnici (ID 18574M)
The company does not have an auditor.
3.5 Information relating to the ROTORUA Trust
Information obtained by the FIAU indicates that Dr Konrad Mizzi chose a “Revocable
Discretionary Trust” as the type of trust. This is in fact confirmed by the Trust Questionnaire
and Due Diligence Sheet (Appendix 8.8) and the Declaration of the Trust document dated 22 nd
July, 2015.
These documents contradict Dr Mizzi’s statement of the 26 February 2016 where he claimed
having set up a “Family Trust”.A Revocable Trust is one whereby provisions can be altered or cancelled dependent on the
grantor, who in this case is Dr Konrad Mizzi. During the life of the trust, income earned is
distributed to the grantor, and only after death does property transfer to the beneficiaries.
This type of agreement provides flexibility and income to the living grantor; He is able to adjust
the provisions of the trust and earn income, all the while knowing that the estate will be
transferred upon death.
Some advantages of a revocable trust are that:
i) Assets must be retitled in the name of the trust to avoid probate;
ii) Costs of maintaining a revocable trust are greater than other estate planning tools
such as a will;
iii) A revocable trust does not offer the grantor tax advantages.
Similarly, a Revocable Discretionary Trust is a trust in which the beneficiaries and/or their
entitlements to the trust fund are not fixed, but are determined by Trustee using the criteria
set out in the trust. The trust itself is revocable which means it can be changed or cancelled
prior to the grantor’s death. Discretionary trusts can provide the trustee with the power to
determine which beneficiaries will receive payments from the trust and/or the power to select
the amount of trust property that the beneficiary receives.More information in relation to a revocable trust is available through
http://www.investopedia.com/terms/r/revocabletrust.asp
On the other hand family trusts are designed to benefit family members from no longer
personally owning asset.
More information on this type of trust is available through
https://www.sorted.org.nz/guides/family-trusts
In addition to the above information relating to the type of trust set up, the Trust Questionnaire
and Due Diligence Sheet (Appendix 8.8), indicates that the objective for which the trust was
established was estate planning, asset protection, confidentiality and privacy as well as
preservation of family assets. The same document also lists the principal beneficiaries as being
Dr Konrad Mizzi, his wife, Mrs Sai Mizzi Liang and their children, Alexander Mizzi and Valentina
Mizzi.
The FIAU also noted that in the case of all 4 beneficiaries the passport number provided in the
Trust Questionnaire and the Due Diligence Sheet is a diplomatic passport number. Such a
document is not assigned to an individual on a permanent basis and should therefore not be
used for personal affairs.
It is pertinent to note that the preservation of family assets is not in line with what Dr Mizzi
claimed on 25 th February 2016 in that the trust was set up to “manage his inheritance” given
that one relates to assets obtained previously while an another relates to assets which are
usually derived from the demise of an immediate family member. Moreover an email dated
21 st August 2015 between Mr Karl Cini and Mossack Fonseca shows that the intended
operations of the Panamanian company was “management consultancy and brokerage” while
in another email dated 17 th October 2015, Mr Karl Cini informed Mossack Fonseca & Co. (New
Zealand) that the Panamanian companies will be used as holding companies for operations
conducted in the sectors of Recycling and Remote Gaming. As one can note there is no
consistency in the intended operations of the Panamanian company HEARNVILLE INC.
3.6 Master Fiduciary Services Agreement (“the Agreement”)
The FIAU obtained a copy of the signed agreement dated 16 th June 2015 between Dr Konrad
Mizzi and MossFon Managers whereby the latter is identified as the Provider while Dr Konrad
Mizzi is identified as the “natural person for whom the benefits is created, gained and
managed, and with pre-eminence over the structures;” (Appendix 8.18)3.7 Transfer of shares into the ROTORUA Trust and increase in share capital
Copies of the share certificates issued by the Panamanian company HEARNVILLE INC. which
are held by the Orion Trust (New Zealand) Limited as Trustee of the ROTORUA TRUST are
provided together with other documentation pertaining to information being provided in this
section (Appendix 8.19)
As was noted in the preliminary report which was disseminated to the Police on 7 th April 2016
in the section titled “Documents referred to in Annex 1”, one may note that on 21 st July 2015,
the directors of the company HEARNVILLE INC. resolved that the shares of the companies
should be transferred to Orion Trust (New Zealand) Limited and that the share capital of both
companies should increase from USD100 to USD10,000. As a result of this resolution a share
certificate was issued on 22 July 2015 stating that Orion Trust (New Zealand) Limited as Trustee
of the ROTORUA TRUST is the owner of 100 shares at a nominal value of US$100 each of the
corporation’s capital, the corporation being the Panamanian company HEARNVILLE INC.
An exchange of emails between Nexia BT and Mossack Fonseca & Co. (Panama) during the
period from 28 th March 2016 and 1 st April 2016 reveal that the above mentioned resolution
and share certificates were corrected and replaced accordingly.
It is pertinent to note, however, that in an email dated 1 st April 2016, Mr Martinez from
Mossack Fonseca & Co. (Panama) informed Mr Cini from Nexia BT that “The reason for this
replacement is the correction and clarification of the reference to the Paid Up Share Capital
which, in the previous resolutions and certificates was wrongly stated as US$10,000, when
actually it was only US$100.” As a result of this communication a new board resolution and
share certificate were drawn up and backdated to 21 st July 2015. The new share certificate
dated 21 st July 2015 reflects that Orion Trust (New Zealand) Limited as Trustee of the ROTORUA
TRUST is the owner of 1 share having a nominal value of US$100 in HEARNVILLE INC, while the
Authorized Capital is US$10,000. The amended Minutes of a Meeting of the Board of Directors
of HEARNVILLE INC. also reflects the issuance of a new share certificate in replacement of the
shares annulled, however this resolution fails to address the issuance of new shares for the
total authorized share capital.
These anomalies therefore indicate that, following an error made on the 1 st share certificate
dated 22 nd July 2015, a subsequent share certificate and board meeting declaration were
drawn up and both backdated to 21 st July 2015. This indicates that the errors made in the new
documents were not noted while also raising suspicion given the ease with which such
documentation was amended and backdated.
3.8 Information obtained from the Tax Department3.8.1 Dr Konrad Mizzi
The FIAU obtained the information shown in section 3.8.2 in relation to Dr Mizzi’s declared
gross income for the years 2010 to 2015.
3.8.2 Mrs Sai Mizzi Lang
The FIAU obtained the following information in relation to Dr. Mizzi and Mrs Sai Mizzi Liang’s
declared gross income for the years 2010 to 2015.
3.9 Bank account information in relation to Dr Konrad Mizzi
Information obtained by the FIAU indicates that Dr Konrad Mizzi is a client of HSBC Bank (Malta)
plc. The following is an overview of the products held with this bank.In addition to the aforementioned accounts and products which are held with HSBC Bank
(Malta) plc, Dr Konrad Mizzi also holds a safety deposit box at the HSBC St. Andrew’s branch,
locker number 1096. This facility was taken out on 20 th January 2005 (Appendix 8.25)
The following is an overview of the visits made to the said safety deposit box facility.
The FIAU is also informed that Ms Sai Mizzi Liang is authorised to access Dr Mizzi’s safety
deposit box facility. In addition she holds 3 other accounts with HSBC Bank (Malta) plc and is
also a supplementary card holder on card number 522009410185879. A brief overview of the
3 accounts held in the name of Ms Sai Mizzi Liang did not yield any noteworthy transactions
and it was noted that the accounts were hardly used since 2010.
An analysis of the activity carried out in the joint accounts 011-100815-001 and 011-100815-
050 and an overview of the said activity is presented in Appendix 8.26. The analysis covers the
period 5 th January 2010 to 12 th March 2016.
In addition to the products held with HSBC Bank (Malta) plc, Dr Konrad Mizzi has been a
customer of Bank of Valletta plc (“BOV”) since June 2013.
According to information obtained by the FIAU the following is an overview of the products,
Dr Konrad Mizzi holds with BOV:An analysis of the activity carried out in the above listed joint accounts and an overview of the
said activity is presented in Appendix 8.31. The analysis covers the period 6 th July 2013 to 28 th
February 2017.
Besides the aforementioned products, Dr Mizzi also holds a life policy issued by Mapfre
Middlesea. The FIAU is further informed that the purpose of the loan was to end finance the
purchase of property for residential purposes and private use.
On the basis of further checks carried out by the FIAU, Dr Mizzi does not hold any accounts in
Malta other than the ones aforementioned. In light of this it is pertinent to note that the
information obtained by the FIAU does not reflect the information provided in Dr Mizzi’s 2014
and 2015 declaration of assets, given that such information does not corroborate Dr Mizzi’s
claims of having bank deposits in excess of EUR300,000 in both declarations.
3.10 Information relating to Dr Konrad Mizzi’s assets
Open source information in relation to Dr Konrad Mizzi’s property in the UK, namely 1,
Wycherley Close, Blackheath, London SE3 7QH, indicates a monthly rental value of
approximately
GBP1,
695.
http://www.zoopla.co.uk/property-history/1-wycherley-
close/london/se3-7gh/28348117
According to Dr Mizzi’s 2014 declaration of assets he owned
i) A house in London which includes a garage
ii) An apartment in Sliema
iii) Bank deposits totalling EUR310,279
iv) 4,000 shares in Malta International Airport plc
The same declaration of assets showed Dr Mizzi’s income for 2014 at EUR76,000 and
outstanding loans of EUR329,816.
Information obtained by the FIAU indicates that Dr Mizzi owned a flat in Balzan. This was
purchased in 2001 and sold in 2004.Through various sources of information the FIAU has drawn up the following list of assets held
by Dr Mizzi. It is pertinent to note that the information obtained by the FIAU indicates that
most of these assets are held in Dr. Mizzi’s and Mrs. Mizzi Liang’s joint names.
i) UK Property – 1, Wycherley Close, Blackheath, London SE3 7QH
ii) Apartment in Sliema (which is still on loan) – held in joint names
iii) Bank deposits totalling EUR92,198.05 (as at 27/02/2017) – held in joint names
iv) 4,000 shares in Malta International Airport plc
Dr Mizzi’s tax declarations show his registered address as being “Ines” 90, Triq il-Qalb ta’ Gesu,
Paola. The FIAU does not have any information indicating whether Dr Mizzi owns this property
or not.
3.10.1 Dr Konrad Mizzi’s declaration to the PANA Committee and the Independent Audit
These documents can be accessed through http://www.independent.com.mt/articles/2017-
02-20/local-news/Konrad-Mizzi-audit-presented-to-PANA-committee-says-no-bank-
accounts-held-by-trust-company-6736170653
In the declaration which Dr Konrad Mizzi presented to the PANA Committee a number of
inconsistencies were noted.
i)
“I realise that in setting up a family trust structure in New Zealand and a related
company I exposed my family and myself to an unprecedented level of unfair
criticism.”
When setting up a trust for the benefit of one’s family and to protect one’s assets, a company
is not required as any assets held can be placed directly into the trust and administered by the
trustees in accordance with the settlor’s wishes.
http://money.cnn.com/pf/money-essentials-trusts/
ii) “In 2015, based on advice I received, I set up a trust in New Zealand and I acquired
a company registered in Panama, which I immediately settled into the Trust.”
iii) “The leader of the Opposition claimed that I opened the structure a few days after
the 2013 general election. This is a clear lie, since all documentation show that I
acquired a shell company in 2015.”Communication between Mr Karl Cini of Nexia BT and Mossack Fonseca (Panama) dated 21 st
March and 25 th March 2013 shows that enquiries in relation to a Panamanian company and
trust were already being made. It was further noted that on 26th July 2013, Mr Karl Cini asked
Mossack Fonseca (Panama) for an extension to complete paperwork in relation to the three
reserved Panamanian companies. It is pertinent to note that Dr Konrad Mizzi was abroad at
this time given his credit card places him in Qatar on 24 th July 2013.
In addition to the above in an email dated 7 th July 2015 between Mr Leon and Mr Cini, Mr Leon
states; “Yes, Karl, they are the real UBOs, but the shares are currently held by a nominee
shareholder (ATC ADMINISTRATORS).”
As has also been noted in the conclusions section of this report given the costs associated with
the setup and maintenance of a trust, it would make no financial sense to the company service
provider (in this case Nexia BT et al) to place a non-operative, shelf company in a trust for an
indefinite period of time which is what was indicated in an email between Mr Karl Cini and Mr
Luis Quiel in March 2013.
iv)
“The prospective investments included the leveraging of our existing house in
London and future investments,”
As per Dr Mizzi’s tax declarations for years ending 2013 and 2014, his rental income did not
exceed EUR22,000 per year. In fact for the 2 years combined, Dr Mizzi’s total rental income
was of EUR37,568.
http://www.maltatoday.com.mt/news/nationalo/64254/konradmizzideclared37500rentalinc
omesince2013#.WL6XFW8rKpo
As is noted in the conclusions section of this report, the costs associated with the incorporation
of a company in one jurisdiction and having that company held under trust in another
jurisdiction are far too high given that the underlying existing asset is only likely to generate a
yearly income which does not exceed EUR22,000.
In addition to the lack of proportionality in the size of the asset and the structure set up to
manage it, one also begs the question as to why the house in London was not placed into the
structure immediately rather than leaving such a costly structure with no assets.
v) “The leaked documents make no reference to any funds held by me in the
structure, because there were none. This confirms my version of events from the
very beginning, which is that there are neither funds nor bank accounts held by
these structures”
vi) “…Attempts made by the service provider to open a bank account, this was part of
the service that was offered to the trust.”These claims immediately raise the question as to the purpose of such a set up if not open a
bank account for the company. Had there not been a company involved, one could hold a trust
and populate it with fixed assets however given that the trust was set up to hold the company,
the company needed a bank account in order to operate.
Furthermore, Dr. Mizzi claimed that attempts were made by the service provider as part of the
service offered, however email communication dated August 2015 between Mr Karl Cini and
Mossack Fonseca (Panama) as well as Dr Mizzi’s credit card activity confirmed that Dr Mizzi
took the original documents relating to his Panamanian company to Dubai himself. Such
activity is not in line with a “service that was offered to the trust.”
vii)
“But I did not sign any bank opening forms, nor did I give a power of attorney to the
service provider to open an account. The service provider was only allowed to make
enquiries.”
This claim is not in line with an email dated 2 nd December 2015 in which Mr Karl Cini gave
instructions to Mr Adrian Dixon to “Go ahead to start the opening of the accounts for those 2
Panama companies.”
In addition the FIAU obtained a copy of a Power of Attorney (Appendix 8.35) which was signed
by Dr Konrad Mizzi on 16 th June 2015.
Given the absolute discretionary powers granted to Mr Cini and Mr Tonna to carry out any
actions necessary with the setup of the trust structure shows that contrary to Dr Mizzi’s claims,
he did in fact give a Power of Attorney to his company service provider enabling and
authorizing then to set up a bank account for this structure. His lack of signatures on any bank
opening forms is also understandable given that in accordance with the Power of Attorney
both Mr Cini and Mr Tonna are authorized to sign all the necessary documentation.
viii)
“$1M per annum deposit ….This is a blatant lie, unsupported by any evidence or,
indeed, any logic.”Information obtained by the FIAU dated 15 th September 2015 indicates that 3 of the banks
contacted required initial deposits of USD 1 million. In an email dated 17 th September 2015,
Mr Cini confirmed that the account will be the operating account of the Panamanian company
and estimated yearly deposits will be of EUR350,000.
In a subsequent email dated 17 December 2015 (Appendix 8.7) from Mr Karl Cini to Juan Carlos
Martinez, Mr Cini provided various details in relation to the operations of the Panamanian
companies. In this communication Mr Cini stated that the companies are estimated to
generate $2million within a year and the monthly amount of the transactions was expected to
be circa EUR150,000.
ix)
“Commission on power station”
Dr Mizzi claimed that the Nationalist Party targeted each project he was involved in and alleged
corruption on each project. The fact that Dr Mizzi set up his offshore asset concealing
structures at a time when he was heavily involved in government deals does raise suspicion.
Even more so when one considers that his children were born in 2007 and 2010 respectively
however it seems Dr Mizzi took no measure to safeguard his family’s interests before 2015. Of
further suspicion is the fact that, at the time when such measures were taken in relation to
asset management, Dr Mizzi had moved away from the private sector which generated a
higher level of income than his ministerial salary.
x)
“On the 7 April 2016, the Malta Independent, an ICIJ media partner, a partner,
prominently reported on its front page that I had divulged to Mossack Fonseca that
I was a politician.”
Such allegations were not only made on local media but also on
http://www.afr.com/news/policy/foreign-affairs/the-panama-papers-new-twist-to-maltas-
mossack-fonseca-bank-saga-20160418-go92hv
Information obtained through this website indicates that Mossack Fonseca (New Zealand) was
not aware that the clients being put forward by Mr Karl Cini were PEPs. As has been noted in
the conclusions section of this report, the FIAU is not in receipt of a series of email exchanges
between Mr Karl Cini and Mossack Fonseca (New Zealand) at some point between 16 th May
2015 and 24 th May 2015. On the basis of open source of information these emails contain
communication relating to the introduction of a second client and the fact that both clients
were PEPs.
xi)
“The Malta Independent, the Times of Malta and other media controlled by the
Nationalist Party created many contradictory and false motivations for the setting
up of the trust. These included inexistent commissions, millions allegedly earned
before entering politics…”A communication from Mr Karl Cini dated 5 th November 2015 to Mossack Fonseca & Co. (New
Zealand) states that “the UBO was also Partner and Head of the Energy and Infrastructure of
the EMEA region (Europe, Middle East and Africa) with Pcubed, a global leader in projects
delivery. He set up the practice and developed major accounts with personal revenue
amounting to GBP 5 million.”
xii)
“I have declared the trust and company, provided full disclosure and have
requested the Inland Revenue Department to investigate my financial affairs. This
level of openness and disclosure is unprecedented in Maltese politics. No Maltese
member of parliament has ever requested a tax audit…”
As was noted in the preliminary report which was disseminated to the police on 7 th April 2016
in the section titled “Document referred to in Annex II”, one may note that through the copies
of due diligence questionnaires which were compiled by Mr Karl Cini on behalf of his clients,
the ROTORUA TRUST was set up for purposes of confidentiality and privacy and instructions
were also given not to have the trust audited.
In light of this information Dr Mizzi’s claims of exercising an unprecedented level of openness
to the PANA Committee by subjecting his set up to an independent audit which was carried
out by Crowe Horwath New Zealand does no subsist.
4.0
FATF Guidelines and Reports
In a report published in June 2014, by the FATF in relation to High Risk and Non-Cooperative
Jurisdictions the following was said of Panama;
“In June 2014, Panama made a high-level political commitment to work with the FATF and
GAFISUD to address its strategic AML/CFT deficiencies; including by: (1) adequately
criminalizing money laundering and terrorist financing; (2) establishing and implementing an
adequate legal framework for freezing terrorist assets; (3) establishing effective measures for
customer due diligence in order to enhance transparency; (4) establishing a fully operational
and effectively functioning financial intelligence unit; (5) establishing suspicious transaction
reporting requirements for all financial institutions and DNFPBs; and (6) ensuring effective
mechanisms for international co-operation. The FATF encourages Panama to address its
AML/CFT deficiencies by implementing its action plan.”
The full report can be accessed through the following link:
http://www.fatf-gafi.org/media/fatf/documents/statements/Compliance-27-June-2014.pdfAccording
to
information
obtained
through
http://www.knowyourcountry.com/panama1111.html, Panama is no longer on the FATF list of
countries that have been identified as having strategic AML deficiencies however it is pertinent
to note that at the time HEARNVILLE INC. was set up which was in July 2013, Panama was
deemed to be partially or non-compliant for all 6 of the Core Recommendations. It was only in
February 2016 that Panama’s significant progress in improving its AML/CFT regime was
recognized by the FATF.
In relation to New Zealand, which is the jurisdiction of choice for the ROTORUA TRUST, the
country does not rate badly, however in the 2013 Asia Pacific Group on Money Laundering
yearly Typologies Report it was noted that the use of shell companies has been a particular
issue for New Zealand and remains an area of concern. Overall the country is considered to be
a medium risk area due to the country’s weakness in Government legislation to combat money
laundering.
http://www.knowyourcountry.com/newzealand1111.html
5.0 Connections to other companies
5.1 TORBRIDGE SERVICES INC. and Mr. Cheng Chen
TORBRIDGE SERVICES INC. was incorporated in the British Virgin Islands on 29 th May 2013
having the company number 1776114 (Appendix 8.20) and registered address Akara Bldg. 24
Dew Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.
A declaration of beneficial ownership dated 27 th February 2015 indicates that the company
shares were held by ATC Administrators in favour of Mr Cheng Chen (Appendix 8.21). It is
interesting to note that on this document Mr. Chen’s name is not included unlike the
equivalent document relating to Dr Konrad Mizzi whereby his name was included listing him
as “The Client” (Appendix 8.15).
This further enhances the suspicion that while Mr Cheng Chen did in fact purchase a shelf
company, namely TORBRIDGE SERVICES INC., the company HEARNVILLE INC. was in fact set up
for Dr Mizzi from the start.
Information obtained by the FIAU indicates that a bank account bearing IBAN
MT12PLTS0401900100972CACOEUR010 was opened with Pilatus Bank plc in the name of
TORBRIDGE SERVICES INC. on 19 th June 2015. Information obtained by the FIAU in relation to
transactional activity indicates that no funds were ever credited to the account with Pilatus
Bank plc. The only transactions which took place were debits due to bank charges as is evident
in the following bank statement.In an email communication between Mr Karl Cini and Neringa Figuriniate, Hamdireza Ghanbari
and Linet Estiroti, (Appendix 8.22) Mr Cini advised that the initial funding to the account is
expected in August (2015) was to be of €200,000. Mr Cini also advised that the expected size
of the relationship by the end of 2015 would be of around €1 million. It is pertinent to note
that in this email communication Mr Cini advised that he will be sending the requested
documentation in a separate envelope, by hand addressed to Mr Hamidreza. This was deemed
to be suspicious given that Hamidreza Ghanbari is the CEO of Pilatus Bank plc and would not
usually be involved in any account opening procedures.
Further information obtained by the FIAU indicates that Mr Cheng Chen has been a director of
Accenture since 2012. By Dr. Mizzi’s own admission “Accenture has been actively supporting
Malta’s energy –transformation ambition by leveraging its extensive global network and deep
industry experience to meet our national demand for energy services, renewables, foreign
investment and innovation. In our close collaboration with Shanghai Electric Power and
Accenture, we are better positioned to shape a smarter and more sustainable energy future in
Malta.”https://newsroom.accenture.com/news/accenture-helps-shanghai-electric-power-expand-
into-european-energy-market.htm
As indicated in the timeline earlier in the report, a number of contracts and agreements
involving Enemalta plc and Electrogas Malta Limited were entered into during April 2015. This
timeframe coincides closely with the period in which the account for TORBRIDGE SERVICES
INC. was set up in June 2015, Mr Cini’s communication stating that the first deposit into the
account is to be expected in August 2015 and Dr Konrad Mizzi’s visit to Whitehall Mansions on
3 rd September 2015 which houses amongst others, the offices of Shanghai Electric and Pilatus
Bank plc. Suspicion is also raised as to why at the same time that these deals were being
entered into, Mr Cheng Chen required a company incorporated in the BVI having a bank
account in Malta, both being countries which have very little nexus to Mr Chen who, as the
Director of Accenture lives and works in China, holds a Chinese passport and has his official
residential address as Room 2602, Building 18, Lane 9, Zhaojiabang Road, Shanghai 200032,
China.
5.2
Information relating to 17 BLACK LIMITED and MACBRIDGE LIMITED
The FIAU obtained correspondence between Mr Karl Cini, Mr Juan Carlos Martinez and Mr Luis
Quiel dated 10 th December 2015 and 17 th December 2015 respectively. In this communication,
Mr Cini was asked to provide various information in relation to the Panamanian companies
belonging to Dr Konrad Mizzi and Mr Keith Schembri. This information included the main
clients of the companies TILLGATE INC. and HEARNVILLE INC. to which Mr Cini advised that the
target clients will be “17 Black Limited (registered in Dubai) and Macbridge Limited (registered
in Dubai)”. (Appendix 8.6).
The FIAU obtained information which indicate that the IBAN pertaining to 17 BLACK LIMITED
is AE600520000110682060036. It is pertinent to note that transactions concerning 17 BLACK
LIMITED were identified by the FIU of the United States as possible “shell company activity,
suspicious wire transfers and money laundering”.
The FIAU is further informed that two transactions were also identified in favour of 17 BLACK
LIMITED. These transactions were carried out on 19 th and 26 th November 2015 respectively for
a total of 1,404,681. Although the FIAU does not hold the currency of this amount, the FIAU isinformed that the USD equivalent of this sum is $1,495,203. The remitter of these transactions
was MAYOR TRANS LIMITED, a company registered in the Seychelles which holds a bank
account with ABLV Bank in Latvia. The ultimate beneficial owner of MAYOR TRANS LIMITED is
Rufat Baratzada. These payments which were both made in favour of 17 BLACK LIMITED’s
account at Noor Islamic Bank, Dubai carried the following payment details: “Partial Payment
to the Commercial Invoice No. 009/2015 DD. Dubai 17 th November 2015 for financial advisory
services.”
–
Pending Auth from FINCen
The FIAU noted that the aforementioned transactions could be deemed as suspicious due to
the following reasons;
i)
ii)
iii)
iv)
The transactions appear to involve shell entities;
The transactions involved high-risk jurisdictions;
The remitter of the transactions was banking outside his jurisdiction;
The purpose of these payments could not be ascertained given that the term
“advisory services” is a very generic term used frequently to move funds of illicit
origin.
The FIAU was further informed that according to Noor Islamic Bank, Dubai, the banking activity
of 17 BLACK LIMITED was deemed to be in line with the company’s profile which is that of
consultancy services. This activity is not in line with the information obtained by the FIAU
through ORION ENGINEERING GROUP, which information is provided in section 5.3 of this
report.
5.3
Information relating to the ORION ENGINEERING GROUP LIMITED
The FIAU obtained information from Mr Mario Pullicino, holder of ID card number 43065M.
The latter is the ultimate beneficial owner of the Maltese registered company ORION
ENGINEERING GROUP LIMITED. Due to the aforementioned transaction which was identified
by the FIAU, Mr Pullicino was asked for further information in relation to the purpose of this
payment. Mr Pullicino claimed that the payment was due to 17 BLACK LIMITED for the
provision of manpower.
The FIAU subsequently noted that Mr Mario Pullicino is the company secretary to the Maltese
registered company, Armada Floating Gas Services Malta Limited. It was further noted that this
company which was incorporated on 6 th April 2015 entered into an agreement with Electrogas
Malta Limited for the chartering of the LNG Tanker MV Armada Mediterrana. This vessel which
bears IMO 8125868 was formerly flagged in the Bahamas and called “Wakaba Maru”.
It is pertinent to note that the transaction which took place between Mr Pullicino’s company
ORION ENGINEERING GROUP LIMITED and 17 BLACK LIMITED (23 rd July 2015) was carried out
3 months following the incorporation of Armada Floating Gas Services Malta Limited. The dateof the transaction also coincides with the time when Mr Karl Cini was trying to open a bank
account for HEARNVILLE INC. as well as Dr Mizzi’s trip to Dubai on 27 th August 2015.
6.0 Information from foreign counterparts
6.1 Information from FIU Bahamas
The FIAU was informed that Dr Konrad Mizzi, HEARNVILLE INC., and the ROTORUA TRUST are
not known to the FIU of the Bahamas. Checks carried out by the FIU of the Bahamas at
Winterbotham Trust Company Limited also did not yield any additional information.
6.2
Information from the FIU of New Zealand – Pending auth from FIU
Information obtained from the FIU of New Zealand did not yield any negative information.
Checks were also carried out in relation to any bank accounts which may have been opened in
New Zealand however none were identified in the names of Dr Konrad Mizzi, HEARNVILLE INC.
The FIAU was also informed that the New Zealand resident director of Orion Trust New Zealand
Limited is Mr Roger Thompson who has a number of bank accounts with different banks,
however without an MLA of the FIU of New Zealand is unable to compel Mr Thompson in his
capacity as Director of Orion Trust New Zealand to provide any information.
The FIU was also informed that Mr Thompson is employed as an accountant with Bentleys New
Zealand.
6.3
Information from the FIU of Panama – Pending auth from FIU
Information from the Panamanian FIU confirmed that Dr Konrad Mizzi, HEARNVILLE INC and
the ROTORUA TRUST were not known to the FIU. The FIAU was informed that ATC
Administrators Inc. is an internal society of Mossack Fonseca which is used to provide
secretarial services to the latter’s clients.
The FIAU was also informed of the following:
“Konrad Mizzi is the actual beneficial owner of HEARNVILLE INC., which was created on July 9,
2013. HEARNVILLE INC., in July 2015 made a change in its share structure and issued a shares
certificate, in its entirety to the name of ORION TRUST (NEW ZEALAND LIMITED). Additionally,
Mr Konrad Mizzi is the beneficial owner of a trust in the New Zealand jurisdiction, called
ROTORUA TRUST.”
6.3
Information from the FIU of the United Arab Emirates
Information obtained by the FIAU shows that the legal persons 17 BLACK LIMITED and
MACBRIDGE LIMITED are not known to the database of the FIU of the United Arab Emirates
(reference to these companies was made in section 5.2 of this report). Unfortunately, the FIUof the United Arab Emirates was not forthcoming with any information relating to the
beneficial ownership of these two companies.
Following further request for information from the FIAU in which the bank account pertaining
to 17 BLACK LIMITED was provided, the FIAU was informed that transactions carried out on
the respective bank account were deemed to be in line with the business activity of 17 BLACK
LIMITED which is consultancy services.
7.0
Conclusions
After having reviewed the information available to the FIAU, the following facts are
considered to be of relevance in the determination as to whether a reasonable suspicion of
money laundering subsists in this case:
In relation to the involvement of Nexia BT, BT International Ltd, BT Advisory Service Ltd,
Nexia BT Consulting Ltd, BTI Management Ltd, Mr Karl Cini and Mr Brian Tonna in the setting
up of financial structures in offshore jurisdictions, which are known for their high levels of
secrecy for the benefit of politically exposed persons:
i)
ii)
iii)
iv)
The email between Mr Karl Cini and Mr Luis Quiel in March 2013, in relation to
details relating to a Panama company and possibly a trust. This information in this
email is not in line with claims made during 2016/2017, that the companies which
were sold at a later date. Given the costs associated with the setup and
maintenance or a trust, it would make no financial sense to the company service
provider (in this case Nexia BT et al) to place a non-operative, shelf company in a
trust for an indefinite period of time.
The fact that, of the 2 BVI shelf companies purchased in June 2013, only one was
retained for the benefit of Mr Brian Tonna which raises suspicion that WILLERBY
TRADE INC. was the company for which the Panamanian bank account was
intended. This in turn raises the suspicion beyond any reasonable doubt that
WILLERBY TRADE INC. was being used as a test prior to setting up the Panamanian
companies and respective bank accounts for Dr Konrad Mizzi and Mr Keith
Schembri amongst possible others. This suspicion is substantiated further by the
fact that email communication with references to HEARNVILLE INC., amongst
others, commenced in July 2013.
The decision not to pursue the opening of a bank account in Panama for
WILLERBY TRADE INC. and to use the recently incorporated domestic credit
institution Pilatus Bank plc instead for both WILLERBY TRADE INC. and TORBRDIGE
SERVICES INC.
The fact that Mr Cini asked for the 3 companies to be reserved for a number of
days and subsequently also asked for an extension on this reservation. This
indicates that Mr Cini likely needed time to communicate with the actual
beneficial owners of the companies and therefore could not take certain decisionsv)
vi)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
vii)
viii)
ix)
himself, which would have been the case had Nexia BT been purchasing these
companies as shelf companies which would have then been sold at a later date (as
was the case with TORBRDIGE SERVICES INC.).
The acknowledgment by Mr Karl Cini that “from a commercially sensitive
perspective they cannot appear as direct shareholders” however in the same email
Mr Cini states that “under our legislation, PEPs are openly allowed to hold
shareholdings in other businesses.” This therefore begs the question as to why the
need for secrecy given that under Maltese legislation, PEPs are openly allowed
shareholdings.
The attempts made by Nexia BT to conceal from the FIAU the fact that the
companies belonged to Dr Konrad Mizzi and Mr Keith Schembri from the start as
is indicated in the following emails:
Mr Karl Cini and Mr Luis Quiel dated 21 st March 2013
Mr Karl Cini and Ms Cristina Rios dated 25 th March 2013
Mr Kark Cini and Mossack Fonseca dated 28 th July 2014
Mr Karl Cini and unidentified 3 rd party dated 8 th August 2014
Mr Daniel Leon and Mr Karl Cini dated 23 rd October 2014
Mr Karl Cini and Mossack Fonseca (NZ) dated 16 th May 2015
Mr Karl Cini and Mossack Fonseca (NZ) dated 23 rd May 2015
Mr Karl Cini and Mossack Fonseca (NZ) dated 16 th May 2015
Mr Daniel Leon and Mr Karl Cini dated 7 th July 2015
Mr Karl Cini and Mossack Fonseca (NZ) dated 17 th October 2015
The alleged lack of email correspondence between Nexia BT, BT International Ltd,
BT Advisory Services Ltd, Nexia BT Consulting Ltd and BTI Management Ltd, and
the Clients and hence the claim that “All instruction and discussions with the
Clients were verbal” is deemed to be suspicious given that when providing such a
service, both the client and the provider are likely to resort to emails at least for
parts of the process.
The fact that the Engagement Letter issued by BTI Management on 5 th May 2015
indicates that this document may have been fabricated to coincide and
substantiate requests and claims made following the revelations of the Panama
Papers .This suspicion is raised given that by his admittance, Dr Konrad Mizzi
claimed that he sought asset management advice in 2014 and an email
communication dated 23 rd October 2014 shows Mr Karl Cini communicating with
Mossack Fonseca (New Zealand) with references being made to a sample trust
deed and information relating to the opening of a bank account.
The fact that Mr Karl Cini, in his capacity as MLRO, withheld information from the
FIAU which shows his clients’ reluctance to inform domestic banks of their foreign
structures and as a result were unable to 2 bank reference letters as requested by
Mossack Fonseca & Co. (New Zealand).x)
Of further suspicion is the fact that Mr Karl Cini informed Mossack Fonseca & Co.
(NZ) that “it is not common to have more than one bank” which is not the case,
given that most people in Malta tend to bank at least 2 different credit
institutions. So much so Dr Konrad Mizzi had been a long standing customer of 2
banks in Malta namely HSBC and BOV.
xi)
The incorporation of Mossack Fonseca & Co. (Malta) Limited in Malta in May 2013
through Brain Tonna company BT international. The firm Mossack Fonseca was
later cited to be “a potential criminal organization that concealed and removed
evidence related to criminal activity” by Panama’s Attorney General.
xii)
The overall lack of fees payable to Nexia BT et al from Dr Konrad Mizzi for the
services provided until June 2016 when a payment of EUR4345.44 was made.
xiii)
The payment of EUR493.72 which was transferred from Dr Konrad Mizzi to BTI
Management on 23 rd August 2016 with reference to a letter dated 23 rd August
2016.
In relation to the suspected ease with which documents were amended/altered:
Following an error made on the 1 st share certificate dated 22 nd July 2015, a
subsequent share certificate and board meeting declaration were drawn up and
both backdated to 21 st July 2015. The ease with which documentation was
amended and backdated is considered to be suspicious.
In relation to the similarities between the structures belonging to Dr Konrad Mizzi and Mr
Keith Schembri:
i)
i)
The suspicion is that Dr Konrad Mizzi and Mr Keith Schembri were setting up
structures as a joint venture, the suspicion is further substantiated by the fact that
the timing of the events indicates that the Panama/New Zealand structures
created for Dr Mizzi and Mr Schembri were created simultaneously and both
persons were working in tandem. This fact is in itself suspicious given that these
structures are typically created on the basis of one’s individual circumstances and
not with a one-size-fits-all approach.
In relation to the attempts made at setting up bank accounts for HEARNVILLE INC:
i)
ii)
Email communications indicates that Nexia BT first attempted opening accounts
themselves for HEARNVILLE INC. and TILLGATE INC, in the United Arab Emirates.
Despite this, Mossack Fonseca & Co. (Panama) were still were still asked to assist
in opening other accounts during the same time period. This indicates the
intention of the companies to hold more than one account in different
jurisdictions.
The communication from Mr Karl Cini dated 25 th August 2015, stating that his
client, in this case Dr Konrad Mizzi, will take documents directly in original format
for the purpose of opening a bank account in Dubai to the respective bank. Thisiii)
iv)
v)
vi)
vii)
viii)
ix)
communication is substantiated by Dr Konrad Mizzi’s credit card activity which
places him in Dubai on 27 th August 2015.
The numerous attempts made to open bank accounts in various jurisdictions, all
of which have very little nexus with the beneficial owner, are deemed to be
suspicious especially when one considers that contact was made with various
banks and the only preoccupation with each request was whether the respective
bank is willing to accept a high risk client. In fact contact was made with less than
8 banks namely:
 Bank in Dubai (exact bank unknown)
 Bank of St Lucia International (BOSIL)
 Winterbotham Bank (Bahamas)
 Banco Itauv(Miami)
 BSI Bank (Panama)
 Brichell Bank (Miami)
 Cidel Financial Group
 FPB Bank (Panama)
In addition it was noted that the email communications trail relating to account
opening never refers to any other feature or perks which the different accounts
have to offer. This was also deemed suspicious due to the fact that people usually
consider having the offshore accounts due to certain advantages such as
beneficial interest rates.
In an email dated 17 th September 2015, Mr Cini confirmed that the account will
be the operating accounts of the Panamanian company and estimated yearly
deposits of EUR350,000. This warrants the question as to how a minister with an
annual income of approximately EUR100,000 was to fund deposits of EUR350,000
to an account held in the name of his Panamanian company.
It was noted that Mr Karl Cini was very timely in replying to communications from
Mossack Fonseca & Co. Panama during the setting up of the companies as well as
the arrangements to open bank accounts for the companies. Therefore it was
deemed suspicious when a reminder was sent to him on 22 nd September 2015 to
provide information on the purpose of the bank accounts and the
operations/activities of the companies and such information was then provided
on the 17 th December 2015.
The willingness to pay USD4,500 for a service that under normal circumstances
can be obtained free of charge.
The reluctance of various banks in known high risk jurisdictions to open an
account for a company whose ultimate beneficial owner is a PEP.
The fact that on the basis of information obtained by the FIAU the first time MR
Cini gave any indications that the Panamanian companies will be used as holding
companies for operations conducted in the sectors of recycling and remote
gaming was in October 2015. This coincides with the time when 3 different bankswhich were willing to consider opening accounts for these companies all
requested an initial deposit of $1million (15 th September 2015). These events lead
to the suspicion that Mr Cini mentioned the 2 sectors as being a source of funds
given that both sectors and known to generate large sums of money. Whereas Dr
Konrad Mizzi’s statement of preservation of family assets would not justify the
receipt of such large sums.
x)
The fact that in an email dated 15 th December 2015 (Appendix 8.7) Mr Cini
provided various details in relation to the operation of the Panamanian
companies. In this communication Mr Cini stated that the companies are
estimated to generate $2million within a year and that the monthly amount of
transaction was expected at circa EUR150,000.
xi)
The numerous and lengthy discussions showing attempts at opening a bank
account for the Panamanian company came to a swift halt once the initial adverse
media reports were published on 22 nd February 2016. According to information
obtained from the FIAU, arrangements to set up these accounts were still being
made on the 17 th February 2016.
In relation to the various contracts and agreements that the Government of Malta
eneterd into:
i)
ii)
iii)
The fact that negotiations of a wind power plant in Montenegro commenced in
July 2010 between the Government of Montenegro and a Spanish Consortium.
Once the required building permit was issued in December 2014, the Spanish
Consortium transferred its shares in the subsidiary company Mozura Wind Park
d.o.o. to Enemalta plc on 2 nd February 2015, with open sources citing the reason
for the transfer being a failure in talks between the Government of Montenegro
and the Spanish Consortium. This raises suspicion given that the Consortium had
been involved in this agreement since 2010 and allegedly was
removed/relinquished its interest just when all systems were in place for the
works to commence. Of further suspicion is the fact that the Consortium still
commenced construction works on the 15 th February despite having transferred
its shares to Enemalta plc on 2 nd February 2015.
Re: NAO Report – The fact that, as was noted in the NAO report dated March
2015; “In the AFC meeting date 12 March 2014, no targets for Q3 and Q4 were
set” as well as the fact that, “this is further corroborated through an email
exchange between Committee member dated 20 March 2014…”
Re: NAO Report – The fact that the dates identified above, namely the 12 th and
20 th March 2014 coincide with the date in which the “Heads of terms agreement
with Shanghai Electric power to partial sale of Enemalta” was drawn up and the
date in which Dr Konrad Mizzi travelled to Beijing presumably on official business
given that the credit card he used was his official card.iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
Re: NAO Report – The allegations made through open sources which state that in
2014 Enemalta Corporation entered into a hedging agreement with Socar Trading
SA following “ministerial direction”, the corroboration of these allegations with
the findings of the NAO report dated March 2015, as well as the FIAU’s
determination that the deals which took place on the 1 st and 2 nd April 2014
warrant further questioning.
Re: NAO Report/Appendix 8.28 – The fact that in relation to the hedging
agreement which took place on the 1 st April 2014 the Advisory and Finance
Committee had agreed on a price on $905/MT for the commodity being diesel,
however the hedge deal was agreed with a price of $910/MT.
The fact that the Petroleum Procurement Committee was informed of the
“ministerial direction” exercised in the hedge deals between Socar Trading SA and
Enemalta Corporation during a meeting held on 3 rd April 2014 which is just 1 day
after Dr Konrad Mizzi’s portfolio was changed to that of Minister for Energy and
Health.
The fact that there seems to be no rationale as to why the Enemalta Corporation
purchased a commodity for USD14,720,000 in April 2014 when on the effective
date which was 1 st July 2014, the Corporation was be acquired by Enemalta plc.
Re: Appendix 8.28.8.29/8.30 – The fact that the confirmation letters did not
provide details for payment.
Re: NAO Report – The fact that the findings of the NAO report dated March 2015,
beg the question as to why agreements with Socar Trading SA have a number of
inconsistencies when compared to other contracts entered into with 3 rd parties.
Re: Nao Report – The fact that the NAO Report dated March 2015 also noted that
these deals with Trading SA corresponded to “100 per cent of Enemalta
Corporation’s Q3 and Q4 unleaded petrol and diesel requirements.”
Re: NAO Report – The NAO’s conclusion that the hedging policy-related
shortcomings identified in the 2013 Report, wherein the Office reviewed
Enemalta Corporations hedging function, largely persisted. As at March 2015, the
Corporations did not have a formally documented hedging policy against which
the Corporation may subsequently set its strategic orientation. One notable
manifested change in terms of hedging policy was the Corporation’s decision to
extend hedging operations to include unleaded petrol and diesel. Enemalta
Corporation and Enemed stated that the rationale motivating policy decision was
driven by efforts an ensuring price stability while more generally adopted a risk
averse approach;
The general lack of terms and figures relating to fees, costs and charges on the
published agreements.
Re Appendix 8.36/8.37 – The fact that there is a conflict in the dates relating to the
subscription agreement of D3 Power Generation Limited.xiv)
xv)
xvi)
Re Appendix 8.36/8.37 – The tampering with published version of the document
relating to the subscription agreement of D3 Power Generation Limited.
Re Appendix 8.36/8.37 – The fact that the copy of the Subscription Agreement
which was obtained by the FIAU does not include Schedules 3, 4 and 5.
Re Appendix 8.43/8.44 – The apparent lack of transparency in relation to the
agreements involving Enemalta plc, Electrogas Malta Limited, Armada Floating
Gas Storage Malta Limited and/or Armada Floating Gas Services Limited and the
involvement of Mr Mario Pullicino in one of these companies.
In relation to the various company incorporations and changes made to enable for
investments in Enemalta Corporation:
i)
The enactment of Chapter 536 of the Laws of Malta which came into force in
August 2014 which inter alia was “to make provision for the transfer of all the
assets, rights, liabilities and obligations of Enemalta Corporation to Enemalta
plc….” and “to repeal the Enemalta Act…”
ii)
The powers conferred to the Minister of Energy in Chapter 536 of the Laws of
Malta significantly outweigh the powers conferred to the same minister under
Chapter 272 of the Laws of Malta.
iii)
The incorporation of 13 companies from May 2013 to December 2015 in order to
enable the privitisation of the Enemalta Corporation and allow for the
involvement of various local and foreign shareholders, namely;
 GEM Holding Limited
(C60349)
08/05/2013
 Electrogas Malta Limited
(C60775)
12/06/2013
 Tumas Energy Limited
(C64888)
28/04/2014
 New Energy Supply Limited
(C64971)
02/05/2014
 Petromal Company Limited
(C65288)
23/05/2014
 Enemalta plc
(C65836)
01/07/2014
 Enemed Co. Limited
(C66404)
19/08/2014
 D3 Power Generation Ltd
(C66510)
29/08/2014
 SEP (Malta) Holding Ltd
(C67784)
26/11/2014
 Int. Renewable Energy Development Ltd (C68860)
02/02/2015
 Armada Floating Gas Service Malta Ltd (C69888)
06/04/2015
 Armada Floating Gas Storage Malta Ltd (C69887)
06/04/2015
 Int. Energy Service Centre Ltd
(C73682)
22/12/2015
These points were deemed to be suspicious given that cap 272, Art 16(1) enabled Enemalta
Corporation to raise funds through debentures. This therefore raises the question as to why
such an elaborate structure of companies as well as a thorough change in legislation was
necessary in order to enable the Enemalta investment.It has also been noted that seven of these companies were incorporated prior to the date of
when chapter 536 came into force.
In relation to the various inconsistencies/suspicions circumstances noted in the case of Dr.
Konrad MIZZI:
i) The inconsistency in the intended operations of the Panamanian Company
HEARNVILLE INC. communications show the said activity to the range from
preservation of family assets, management of inheritance, management consultancy
and brokerage as well as being used as a holding company for operations conducted
in sectors of Recycling and Remote Gaming.
ii) Upon his return from Montenegro (ie. 16th June 2015) Dr. Mizzi signed the Source of
Funds/Wealth Declaration Form. (Appendix 8.3). This declaration form identified Dr.
Mizzi’s source of funds/wealth as being personal assets and proceeds from business
trade.
iii) The time in which the UK Company GASOL, sold its interests in Electrogas Malta Ltd.
(22/07/2015) coincides with the time when HEARNVILLE INC. was placed under trust
and steps were being taken to open an offshore account/s for HEARNVILLE INC.
iv) Dr. Mizzi’s presence in Serbia in October, 2015 five days prior to the date an
agreement was signed between the state of Montenegro State Consortium Fersa and
Celebic, Mozura Wind Park d.o.o and Enemalta plc.
v) Dr. Mizzi’s presence in Montenegro in November 2015, which is just two days after an
agreement was signed between the government of Montenegro and Enemalta plc. in
relation to a 1.5 million Euro bank guarantee. Of further suspicion is the fact that the
only transactions which appear to have been carried out using bank cards during this
trip are on Dr. Mizzi’s personal credit card and are only for 0.01 euros which means
that these were carried out in order to ensure that the card is valid. This therefore
raises the question as to why Dr. Mizzi refrained from using his official card during this
trip.
vi) Dr Konrad Mizzi’s visit to Shanghai 2 days after the incorporation of SEP (Malta) Holding
Limited in Malta, a company whose sole shareholder is Shanghai Electric Power and Energy
Power and Energy Development Limited.
vii) On the basis of information obtained through Dr Konrad Mizzi’s credit card activity, Dr
Mizzi travelled to China 17 times during the period 10/09/2013 to 24/03/2016. It was noted
that despite having family in China he stayed in hotels for at least 16 of these trips. This fact
combined with the use of his official card indicates that these trips to China were State
related visits. It was also noted that no transactions were noted on Mr Mizzi’s accounts in
relation to the purchase of flight tickets. The volume of trips to China at a time when Malta
and China were already signing deals in relation to Enemalta raises suspicion.viii) The reluctance to name the company carrying out the independent audit in relation to Dr
Konrad Mizzi’s offshore structures citing that the audit was still in progress when
documentation shows that the audit was in fact completed two weeks prior to the statement
being made.
ix) Email correspondence between Mr Karl Cini and Mossack Fonseca shows sudden and
persistent attempts in setting up a bank account for HEARNVILLE INC. during 2015. This was
deemed suspicious given that the company had been incorporated since 2013 and the only
measures taken since then were to have the company placed under trust. This sudden
persistence in opening a bank account for the Panamanian company at significant costs
coincides with the time when the required domestic company corporations, deals and
agreements in relation to the privatization of the Enemalta Corporation were nearing
completion/completed.
x) The fact that the costs associated with setting up a structure involving a Panamanian
company which is held under trust in New Zealand are not justified when one takes into
consideration the fact that Dr Mizzi’s 2014 declaration of assets consisted of:


A house in London which includes a garage (which has a potential rental value of GDP
20K per year)
An apartment in Sliema (which still has an outstanding bank loan attached to it and
therefore cannot be placed under trust or used to generate further income such as
rent)

Bank deposits totaling €310,279 (It is pertinent to note that the analysis carried out
by the FIAU failed to corroborate this amount. Information obtained by the FIAU
identified bank deposits totaling just over €92,000 which are held in joint accounts
with Ms Sai Mizzi Liang);
 4,000 shares in Malta International Airport plc (the dividends in these shares are
being credited to Dr Mizz’s domestic accounts. It is interesting to note that the
amount of dividends being paid out would is minimal and therefore not worth
concealing in an offshore set up such as the one mentioned earlier).
In addition to this information, it is worth noting that in Dr Mizzi’s 2015 declaration, bank
deposits of €389,440 were declared. Again this is not in line with the sums identified in this
analysis.
The apparent lack of these bank deposits, which would be one of the most significant assets
Dr Mizzi holds, further begs the questions as to why such a structure was required, given that
the costs of setting up and maintaining such a structure would outweigh any financial benefit
derived solely from the property in the UK.xiii) The fact that Dr Konrad Mizzi’s assets in Malta, namely the bank deposits as well as the
apartment in Sliema (which has an outstanding bank loan attached to it and is therefore
hypothecated in favour of BOV) are all assets which are held jointly with his wife Mrs Sai
Mizzi Liang. In view of this Dr Mizzi would not be able to transfer any of these assets to a
trust of which he alone is the settlor.
xiv) The fact that the passport numbers provided for the last 4 beneficiaries listed in the Trust
Questionnaire and the Due Diligence Sheet are diplomatic passport numbers. This was
deemed suspicious given that the document is not assigned to an individual on a permanent
basis and should therefore not be used for personal affairs.
xv) Dr Konrad Mizzi’s claims that he “did not sign any bank opening forms, nor did I give a
Power of Attorney to the service provider to open an account.” is not in line with the Power
of Attorney he signed on 16 th June 2015 in which he granted absolute discretionary powers
to granted to Mr Cini and Mr Tonna to carry out any actions necessary with the set-up of the
trust structure (which inter alia includes the Panamanian company and related bank
account), including the authorization to sign all the necessary documentation.
xi) On the basis of the information available to the FIAU, this whole set-up cost Dr Mizzi at
least:


€4,839.16 to BTI Management (as per K Mizzi’s BOV bank statement)
USD 5,235 to set up Roturua Trust with the underlying company (as per independent
audit)
Such costs totaling approx. €9,700, which do not include the annual fee charged by the trust
services provider, again show that such a setup is too costly to justify it being used simply to
hold a property in the UK which is expected to generate rental income of approximately GBP
20K per year and average bank deposits of €92,000 which are not even held in Dr Mizzi’s sole
name.
It is also pertinent to note that other fees may have been due to Mossack Fonseca & co.
(Panama) for the services provided since 2013 as is evidenced in the lengthy communications
with Mr Karl Cini. The FIAU does not have any information which may indicate the cost of
said fees except that the cost to open a bank account was USD4,500 per account.
In addition, it has also been noted that during the stage were account were being made to
set up a bank account for HEARNVILLE INC., Dr Konrad Mizzi personally travelled to Dubai in
order to present the bank with the relevant documentation. The FIAU is also unaware of the
costs incurred during this trip.xii) In addition to the lack of proportionality to in the size of the asset and the structure set
up to manage it, one also begs the question as to why the house in London was not placed in
the trust immediately rather than leaving such a costly structure with no assets.
xiii) The fact that Rotorua Trust was initially set up for purposes of confidentiality and privacy
and instruction were given not to have the trust audited (Appendix 8.8). This is not in line
with Dr Konrad Mizzi’s subsequent claim to the PANA Committee that he had subjected his
set-up to an independent audit which was an unprecedented level of openness.
In relation to the UAE company 17 Black Limited:
i) The provision of “consultancy services” by 17 Black Limited, a company registered in the
United Arab Emirates coupled with Mr Karl Cini’s claim that this company together with
Macbridge Limited, another company registered in the United Arab Emirates, are the target
clients of Tillgate Inc. and Hearnille Inc.
ii) The involvement of Mr Mario Pullicino as company secretary to Armada Floating Gas
Services Limited, a company which was incorporated 3 months prior to the transaction from
Orion Engineering Group to 17 Black Limited.
iii) The difference in the references for the transaction which was attempted on 10 th July
2015 and the transaction which was carried out successfully on 23 rd July 2015.
iv) The inconsistencies in alleged business activity of 17 Black Limited with one source stating
that the company provides man power, whereas information obtained indirectly from Noor
Islamic Bank Dubai states that the company provides consultancy services.
In relation to the BVI company Torbirdge Services Inc:
i)
The fact that Mr Karl Cini advised that he will be sending the requested
documentation in relation to Torbridge Servics Inc in a separate envelope, by
hand, addressed to Hamidreza, who being the CEO of Pilatus Bank would not
usually be involved in any account opening procedures.
ii)
The fact that Mr Cini advised that the initial funding to the account of Torbridge
Services Inc was expected in August 2015 and that the expected size of the
relationship by end of 2015 would be around €1million, however following initial
adverse media reports in February 2016, no such activity ever took place on the
account.
Finally, and most importantly, an explanation will need to be provided for:
i)
The fact that Dr Konrad Mizzi, who claims to be a well-off individual looking to
safeguard his assets, opted to set up a complex structure shortly after he wasii)
appointed as a government minister, a role which carried a financial package that
was significantly less than his previous employment;
The fact that the set-up of these structures also coincided with the time when the
Government of Malta was entering into numerous agreements directly
concerning Dr Konrad Mizzi’z ministry. This is suspicious given that, in the event
that Dr Konrad Mizzi wished to protect his assets for his family’s benefit, it would
have been logical to do so shortly after the birth of his children in 2007 and 2010
respectively, and during a time when he was earning significantly higher salaries
as well as living in a country which is known to have a higher tax rate than Malta.
In view of the above circumstances, the information available to the FIAU is deemed to
be sufficient to conclude that a reasonable suspicion of money laundering and/or the
existence of proceeds of crime subsists. It is therefore being recommended that this
report be transmitted to the Police in terms of Article 31 (1) of the Prevention of Money
Laundering Act (Chapter 373 of the Laws of Malta) for any action the police may consider
appropriate.
Analysis conducted and report drawn up by:
______________
Ruth Gauci
Senior Financial Analyst

UR News 24

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