european students’ union

BM77: Resolution on the Political Crisis in Malta

December 19, 2019

Considering the following: 

  • The former Minister for Tourism Hon. Konrad Mizzi and the former Chief of Staff at the Office of the Prime Minister Mr. Keith Schembri are owners of Hearnville Inc. and Tillgate Inc., offshore companies in Panama; 
  • The offshore company, 17-Black is owned by Yorgen Fenech as per UAE banking correspondence unravelled by Reuters;
  • Yorgen Fenech is a shareholder of GEM Holdings, this being one of the owners of Electrogas Malta Ltd. alongside Siemens and the Azeri state energy company Socar; [1]
  • Electrogas Malta Ltd. is the consortium selected by Enemalta plc. in 2013 to build and operate an LNG power station in Delimara;
  • Enemalta plc was under the responsibility of then Energy Minister Hon. Konrad Mizzi; 
  • The National Audit Office in its report on the Electrogas deal commented that Electrogas’s bid to control and monopolize the provision of electricity to Enemalta failed compliance with minimum requirements on multiple instances to win the public contract. [2]
  • Yorgen Fenech is the alleged mastermind behind the assassination of journalist Daphne Caruana Galizia;
  • A total of €1.3 million was transferred to 17 Black, a Dubai company listed as one of the “target clients” of Konrad Mizzi’s and Keith Schembri’s Panama companies as leaked emails of Maltese accounting firm Nexia BT show. See Appendix A
  • According to said emails, these companies were meant to generate approx. €2 million from target clients 17 Black Ltd. and Macbridge Ltd. 
  • The former Chief of Staff of the Office of the Prime Minister, Mr. Keith Schembri is implicated by newspaper reports and witness testimony of; attempts at obstructing justice; leaking confidential information about an active criminal investigation with the alleged perpetrators; and; orchestrating an attempted frame-up of a government minister. 
  • The Prime Minister, Hon. Joseph Muscat is responsible for the Government appointments of Konrad Mizzi and Keith Schembri. 
  • The Prime Minister has been aware of the offshore structures set up by Konrad Mizzi and Keith Schembri for over three years. 

 

KSU resolves that:

  • The Prime Minister, Hon. Joseph Muscat must shoulder political responsibility for the current situation as described above and resign from Prime Minister with immediate effect.
  • An investigation into all public procurement contracts involving Keith Schembri, Konrad Mizzi and Chris Cardona must take place. 
  • Further checks and balances are necessary in Malta’s system of Government to ensure that such situations are prevented. 
  • Clear separation of powers is a necessary component in a democracy. 

 

Proposed by: KSU

Seconded by: CREUP, CSC, FAGE, FZS, NUIS, NUS UK, POFEN, SRVS, UDU, UNEL

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