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Showing posts with label Panama Papers. Show all posts
Showing posts with label Panama Papers. Show all posts

Friday, December 6, 2019

Corruption, Clientelism and Murder - Malta Emerges as the EU's Next Problem Child

Two years after the murder of journalist Daphne Caruana Galizia, Malta's vast cesspool of corruption has become impossible to ignore. The EU's smallest member state is on the brink of failure.
By Frank Hornig and Juan Moreno

Michael Vella, father of late Daphne Caruana Galizia, holding a portrait of his late daughter
at a protest demanding justice for her. Darrin Zammit Lupi / REUTERS

"There are crooks everywhere you look now. The situation is desperate."

Daphne Caruana Galizia on Oct. 16, 2017, in her last blog entry, posted 24 minutes before her murder.

It's tempting to ask Corinne Vella how she avoided going crazy in the last two years. It is one thing, after all, to lose your sister to a hit job -- to learn that she was murdered in cold blood by a car bomb. But it is quite another to live with the conviction that neither the police, nor the country's government nor public prosecutors seem to have much of an interest in getting to the bottom of the crime.

Vella is sitting in the lobby of the luxurious Phoenicia Hotel in Valletta, the capital of the Mediterranean island nation of Malta. Jazz is playing in the background and the waiters wear ties, at pains to serve guests from the correct side. Vella is a serene woman, perhaps even shy. But she's here because she wants to talk about her sister and the factors that led to her death. It's the strategy she uses to avoid going crazy. "Daphne basically became my job. There isn't much else I've done in the last two years."

Vella is the sister of Malta's most famous journalist, Daphne Caruana Galizia. Daphne, as everyone in the country calls her, was murdered in a targeted killing on Oct. 16, 2017. She was a blogger, and her frequently extremely well reported, occasionally biting and sometimes humiliating reports were required reading on the island. Some of her entries were read more than 400,000 times. Everyone knew Daphne, many were afraid of her -- and not a few hated her.

"When Daphne was killed, people wrote on social media that the witch had finally got what she deserved," says Vella. Her family closed ranks after the murder and resolved to do everything in their power to ensure that the murderer would not go unpunished. Aunts, nieces, sons: They all protested at government agencies, got European institutions involved and spoke at journalism conferences.

The investigation, meanwhile, proceeded only sluggishly. Police arrested three suspects, ex-convicts who officials felt could have been responsible because of their criminal records and because of clues that seemed to point in their direction, but there was no obvious motive. Why should these men kill a journalist? Caruana Galizia never wrote a word about them. Who really wanted the prominent journalist dead?

Moving Quickly

Now, a bit more than two years after the attack, things have suddenly begun moving quickly. Two weeks ago, Yorgen Fenech, a businessman and a member of one of Malta's wealthiest families, was arrested on his yacht -- apparently just as the multimillionaire was preparing to leave the island. He has since been charged with accessory to murder. Despite incriminating witness testimony, Fenech continues to deny any wrongdoing. He has, however, accused a member of the Maltese government of being involved in the murder: Keith Schembri, chief of staff to the country's prime minister.

Schembri resigned last week, despite insisting he is innocent. But then Prime Minister Joseph Muscat also announced his intention to step down in January. Opposition politicians in parliament demanded that he not wait so long and vacate his office immediately. Meanwhile, demonstrators pelted Muscat with eggs.

"It has been the two most chaotic weeks in Malta's recent history," says Corinne Vella, adding that she has spent almost the entirety of the last few days on her mobile phone because of the torrent of news. For the first time, she now has the feeling that she may ultimately learn who killed her sister.

Daphne Caruana Galizia's sister, Corinne Vella - Gianmarco Maraviglia/ / DER SPIEGEL

Malta, the European Union's smallest member state, generally stays out of the headlines. Two-and-a-half years ago, DER SPIEGEL and other European media outlets involved with European Investigative Collaborations (EIC) published the "Malta Files," which revealed how German companies were able to save on taxes by establishing themselves on the island. Beyond that, not much tends to be written about the country and its 475,000 residents.

Now, though, dubious links between Maltese business leaders, politicians and organized crime have become visible, and it increasingly looks as though Malta operates by a different rulebook than the rest of the EU. The separation of powers in the country appears to be largely non-existent, with police doing the bidding of politicians and the anti-money-laundering agency joining the judiciary in turning its back all too often on malfeasance, instead of investigating, prosecuting and punishing criminal behavior.

A poster of Maltese Prime Minister Joseph Muscat - Guglielmo Mangiapane/ REUTERS

Alarmed, the European Parliament sent a delegation to Malta a few days ago, with the European Commission in Brussels warning the country's government to refrain from exerting political influence on the investigation. The murder of Caruana Galizia, it would seem, is no longer just a problem for Maltese politics. It is now emerging as an acute threat to European values, the rule of law, the freedom of the press and a rules-based market economy. Ultimately, it is about how many banana republics the EU can tolerate within its ranks.

An Economic Miracle?

There is much more on this story at Der Spiegel.




Wednesday, December 4, 2019

Middleman Gives Details to Malta Court of Plot to Kill Reporter

Corruption is Everywhere - in Malta's Government and Business

Anti-corruption journalist Daphne Caruana Galizia
was killed by car bomb in 2017
Thomson Reuters 

A person holds a hand on a picture of Daphne Caruana Galizia during a demonstration to demand justice
over the killing of the journalist in Valletta, Malta. (Yara Nardi/Reuters)

The self-confessed middleman in the murder of a journalist tells a court that a wealthy Maltese businessman was the brains behind the killing, but says people tied to the government might also be implicated.

Melvin Theuma received immunity from prosecution last week in return for information that would lead to the conviction of the alleged plot ring leader, multi-millionaire entrepreneur Yorgen Fenech.

Fenech has been charged with complicity over the 2017 murder of anti-corruption journalist Daphne Caruana Galizia by a car bomb. He has denied the accusations and blamed former government chief of staff Keith Schembri and other top officials.

Schembri was arrested last month but later released. He has denied involvement in the killing which has shone a spotlight on allegations of rampant corruption in Malta's overlapping worlds of politics and business. Schembri later resigned.

Theuma gave a detailed account of how the 38-year-old Fenech had contacted him in 2017 to organize the hit, providing €150,000 (about $226,500 Cdn at the time) for the contract.

The plot was put on hold before national elections in June 2017 but reactivated the night the ruling Labour party was returned to power, Theuma told a packed courtroom.

"I can assure you, Yorgen Fenech was the only mastermind. Only he spoke to me," said Theuma, a taxi driver with links to the criminal underworld.

Maltese businessman Yorgen Fenech has denied being complicit in the killing of the journalist. (The Associated Press)

Fenech wanted Caruana Galizia dead, because he thought she was going to publish an incriminating story about his uncle, Theuma said.

His uncle, huh? Certainly, there were people in Malta's business sector and in the government, including the Prime Minister, who were implicated for tax dodging in the Panama Papers.

He said he was called to government headquarters after agreeing to arrange the killing and that Schembri himself gave him a tour of the building, which includes Prime Minister Joseph Muscat's offices. The pair had their photograph taken.

Muscat has denied wrongdoing but acknowledged he could have handled the aftermath better and said he will step down next month.

Theuma was subsequently told he had been put on the government payroll and received a paycheque for three or four months. "If you asked me, I wouldn't know what my job was at the ministry, as I never went," he said.

He said he paid three local men to carry out the killing. The trio were later arrested and are awaiting trial, having pleaded not guilty. They sat in court stony-faced.

Theuma recounted his panic after the alleged triggermen were arrested and news emerged that one was cooperating with police.

He said he was then contacted again by an employee from in the government headquarters whom he named as Kenneth. In an apparent attempt to buy their silence, Kenneth said the three suspects would be released on bail and given €1 million, though the bail and did not arrive.

Made secret recordings

Theuma said he asked Fenech whether Schembri had sent Kenneth to him, but got no answer. Scared for his own safety, he started making secret recordings of his conversations with the businessman, which he has given police.

"I started to think they would either lock me up or kill me," Theuma said. He also acknowledged writing a note where he said both Schembri and Fenech ordered the hit. In court, he distanced himself from the accusation, making clear he had no evidence.

With Malta under scrutiny, the new head of the EU executive, Ursula von der Leyen, urged a thorough investigation without political interference. "It is crucial that all those responsible are put to justice as soon as possible," she said.

A European parliament delegation, which has spent two days in Malta to review rule of law within the EU's smallest member, recommended that Muscat go immediately.

"There has to be absolute confidence in the [investigation] and I think when he is in office, that confidence is not there," said Sophie In't Veld, a Dutch member of parliament who led the mission.

German member Birgit Sippel told reporters that even with Muscat gone, it would take time to rebuild Malta's reputation and suggested the entire government should go.




Monday, December 2, 2019

Maltese Prime Minister Joseph Muscat to Depart in January After Corruption/Murder Scandal

By Allen Cone

(UPI) -- Joseph Muscat announced Sunday he will leave as Malta's prime minister and Labour Party chief in January amid an investigation of a murdered journalist investigating corruption.


Muscat, who has been in power since March 11, 2013, said on national television in the central Mediterranean nation he will ask the ruling party to choose his successor on Jan. 12. His second term was to end in 2021.

"Malta needs to start a new chapter and only I can give that signal," Muscat said during the address, which included a recitation of the government's achievements over the past 6 1/2 years.

He had met for four hours with Labour's parliamentary group during which they gave "unanimous support to all decisions which the prime minister will be taking."

In the capital, Valletta, protesters gathered to demand Muscat's immediate resignation.

Demands for his departure grew after businessman Yorgen Fenech was charged Saturday with complicity in the murder of journalist Daphne Caruana Galizia. Fenech denies the allegations. In 2017, Galiza was killed by a car bomb as she investigated corruption among Malta's business and political elite.

Fenech was identified in 2016 as the owner of Dubai-registered 17 Black in the Panama Papers, a collection of leaked confidential documents showing how wealthy and powerful companies around the world use tax havens to get around the law.

Muscat's chief of staff Keith Schembri and acting tourism minister Konrad Mizzi resigned Tuesday. They have denied any wrongdoing though they had been accused of corruption by the journalist.

Brothers Alfred and George Degiorgio and their friend Vincent Muscat have been charged with triggering the bomb. They have pleaded not guilty in pre-trial proceedings.

Members of her family have said the prime minister should resign because he had failed to take action to clean up politics in Malta.

Muscat said investigations were ongoing and insisted "no one is above the law."

"It is not right that a person, with her good and bad, who contributed to democracy had to be killed this way... The anger and disappointment are understandable and it is never justified to somehow justify the murder. But neither can disorder and violence be justified under the guise of protest," Muscat said.




Tuesday, November 26, 2019

Malta Chief of Staff Resigns Amid Probe of Journalist's Slaying

Corruption is Everywhere - Maybe Even in Malta
By Don Jacobson

Maltese Prime Minister Joseph Muscat, shown here during a July visit to Prague, announced the resignation of
chief of staff Keith Schembri Tuesday. File Photo by Martin Divisek/EPA-EFE 

(UPI) -- The chief of staff to Maltese Prime Minister Joseph Muscat resigned Tuesday amid an investigation into the 2017 slaying of a journalist who was probing alleged government corruption.

Keith Schembri, who was also Malta's acting tourism minister, submitted his resignation following a meeting of government ministers, Muscat told reporters in Valletta.

"I had various discussions with Keith Schembri, and he said he would be resigning in the day," Muscat said. "I thank him for the contribution he gave... he had a crucial role, and I thank him for shouldering this burden."

Curious statement isn't it? Since the PM was also under scrutiny by Galizia!

Schembri himself had no comment.

Multiple media reports indicated he'd been taken to police headquarters for questioning regarding the car-bombing death of investigative journalist Daphne Caruana Galizia, who had published reports linking Schembri, another government official and a Maltese businessman to secretive Panamanian shell companies.


Her reporting was based on documents leaked from a company owned by Yorgen Fenech, who had won a government contract to run a major power station. Fenech was arrested last week after resigning from his family-owned business, Electrogas.

While Schembri has denied any involvement in Galizia's slaying, opposition politicians demanded he be fired from his chief of staff role. Muscat initially resisted, but changed his mind this week.

I suspect there is much more to this story that we don't yet know.




Sunday, July 8, 2018

Ex-Pakistan PM Sharif gets 10 Years for Corruption, Panama Papers Involved

Corruption is Everywhere - at the highest levels
of the Pakistani government
By Sara Shayanian

Nawaz Sharif, the former prime minister of Pakistan, was sentenced Friday to ten years in prison on corruption charges.
File Photo by Pat Benic/UPI | License Photo

UPI -- Former Pakistani Prime Minister Nawaz Sharif was sentenced Friday to ten years in prison on corruption charges.

Sharif, who is in London and was charged in absentia, was convicted with his daughter and son in-law.

Judge Mohammad Bashir sentenced Sharif for owning assets beyond income and for not co-operating with Pakistan's National Accountability Bureau.

Daughter Maryam Nawaz Sharif received seven years for abetting a crime and one year for not co-operating. Son-in-law Safdar Awan was given a one-year sentence for not co-operating. The former prime minister and his daughter also received millions in fines.

Maryam Nawaz's sons, Hassan and Hussain, were declared "proclaimed offenders" and the court ordered non-bailable perpetual arrest warrants for their capture.

The Sharif family's Avenfield apartments, which had been in their possession since 1933, will be seized by Pakistan's government.

Sharif said the charges are politically motivated and has consistently denied wrongdoing. Friday, Nawaz said her father would return to Pakistan despite attempts being made to stop him.

"Nawaz Sharif is coming," she tweeted. "Today was the last attempt, as before, will be a failure."

Fall-out from the Panama Papers

Sharif resigned last year after a 15-month investigation into his family's wealth showed Sharif's children were linked to offshore banking companies in the 2015 release of confidential data known as the Panama Papers.

The papers revealed three of Sharif's adult children owned offshore companies and assets not listed on the family's government-ordered financial disclosure statement. The companies moved funds to acquire foreign assets, including London real estate.

In May, Sharif was disqualified from holding public office again by Pakistan's Supreme Court.




Wednesday, December 6, 2017

Three Charged in Murder of Maltese Journalist

Corruption is Everywhere - Even in Malta
By Daniel Uria 

Three men were charged in the murder of Maltese journalist Daphne Caruana Galizia on Tuesday.
Photo by Olivier Hoslet/EPA

(UPI) -- Three men have been charged in the murder of Maltese journalist Daphne Caruana Galizia, who was killed by a car bomb last month.

The three suspects include brothers George Degiorgio,55, and Alfred Degiorgio, 53, as well as Vincent Muscat, 55.

All three pleaded not guilty and were remanded in custody after a preliminary court hearing.

They were among 10 Maltese nationals arrested on Monday in connection with Galizia's murder.

Investigators focused on the three suspects based on telephone intercepts including a call from a mobile phone that allegedly triggered the bomb, the Times of Malta reported.

Galizia, 53, was killed when a car bomb exploded in her vehicle in October, after she filed a police report 15 days earlier to reveal she had been threatened.

Prior to her death she accused Malta's Prime Minister Joseph Muscat of wrongdoing, linking him and his wife to the Panama Papers -- some of which detailed financial information including fraud and tax evasion.



Monday, October 16, 2017

Car Bomb Kills Maltese Journalist Who Accused PM of Corruption

Corruption is Everywhere
By Danielle Haynes  

UPI -- A car bomb on Malta's southern island killed a journalist who linked the government to the Panama Papers scandal, local police said Monday.

Daphne Caruana Galizia, 53, died when her car exploded shortly after she left her home in Bidnija, BBC News reported. The bomb left her vehicle in several pieces along a road and nearby field around 3 p.m.

Caruana Galizia filed a police report 15 days before her death saying she had been threatened, The Times of Malta reported.

Earlier this year, she accused Prime Minister Joseph Muscat of wrongdoing, linking him and his wife to the Panama Papers. The papers included documents detailing financial information, some of which included fraud and tax evasion.

Despite the accusations, Muscat condemned her death. Police opened a murder investigation.

"I condemn without reservations this barbaric attack on a person and on the freedom of expression in our country," he said in a televised statement.

Muscat said there was "no justification ... in any way" for her death.

"I will not rest before justice is done," he said.

Thousands of people gathered Monday night in Sliema for a candlelight vigil. Maltese nationals in London also held an event outside Malta's High Commission in Mayfair.

Bidnija, Malta

Monday, October 24, 2016

Hidden Off-Shore Banking Set to Result in Dramatic Changes to Icelandic Government

Iceland’s Pirate Party poised for
Saturday election win – poll
Anti-elitism in Iceland appears to be more successful than Trump's orange revolution in America

Members of the Icelandic Pirate Party  © Píratar
Members of the Icelandic Pirate Party © Píratar / Facebook

Iceland’s national election is likely to bring unprecedented results, with a new poll suggesting the Pirate Party will win. Led by a poet and former WikiLeaks activist, it’s running on an anti-corruption campaign against the financial and political elite.

An opinion poll conducted by the Social Science Research Institute of the University of Iceland and commissioned by Morgunblaðið newspaper found that one in five voters intends to cast their ballot for the Pirate Party on Saturday.

That figure puts the party in first place with 22.6 percent of the votes – 1.5 percent ahead of the center-right Independence Party, which is currently in power. Those numbers would give each of the two parties 15 MPs in the 63-seat parliament.

Such a win would be history-making for the Pirate Party, which is led by Birgitta Jónsdóttir – a poet, web developer, former WikiLeaks activist.

The party's forecast success is largely based on its campaign against perceived corruption among Iceland's elite.

Support for the party increased by a whopping 43 percent after the resignation of Prime Minister Sigmundur David Gunnlaugsson in April, after it was revealed that he and his family had sheltered money in offshore accounts. The party's cause was also helped by the Panama Papers, which revealed other prominent Icelandic politicians had done the same.

Earlier this year, Jónsdóttir called her party's success “strange and very exciting,” adding that it was “driven not by fear, but by courage and hope,” the Guardian reported.

However, she has acknowledged that the party – which was created less than four years ago as a movement against global copyright laws – is inexperienced when it comes to the economy.

Birgitta Jónsdóttir © Icelandic Pirate Party
Birgitta Jónsdóttir © Icelandic Pirate Party / Wikipedia

“We know that we are new to this and it is important that we are extra careful and extra critical on ourselves to not take too much on. I really don't think that we are going to make a lot of ripples in the economy in the first term,” she told Reuters last month.

However, the Pirate Party – whose campaign is largely crowdfunded – is after more than just looser copyright laws and less corruption from politicians. In an effort to get young voters on board, the party has asked the developers of the popular app Pokemon Go to turn polling stations into Pokestops – locations where players can collect the items necessary to catch Pokemon.

The party has also promised to grant asylum to US whistleblower Edward Snowden and accept the bitcoin currency. It has also pledged to give voters a direct say over policy and decriminalize drugs.

One caution for Icelanders: it is one thing to vote out a government that is corrupt, but please make sure the government you vote-in is one you actually want.

The Pirate Party last week ruled out the possibility of entering a coalition with the Independence Party (Sjálfstæðisflokkurinn) or the centrist Progressive Party (Framsóknarflokkurinn). Jónsdóttir has suggested she would prefer to be the speaker of the Icelandic parliament, rather than becoming prime minister.

The party's predicted success will be a huge leap from the 2013 general election, when it gained just 5 percent of votes and three seats in parliament. That result was still extremely significant, however, as it made Iceland the only country in the world have members of the Pirate movement in government.

The Pirate Party first began in Sweden in 2006, and was created to bring about digital copyright reform. There are now 40 such parties around the world.