Police raid Pilatus Bank offices in Ta’ Xbiex
The police yesterday raided and sealed off the offices of Pilatus Bank, located in the Whitehall Mansions building in Ta’ Xbiex, to look into the allegations made by blogger Daphne Caruana Galizia that the mysterious Egrant company, set up in Panama, is or was owned by the Prime Minister’s wife Michelle Muscat.
Prime Minister Joseph Muscat and his wife Michelle Muscat have categorically denied the claims, repeatedly.
Pilatus Bank was set up in 2013, after the general election. Mrs Caruana Galizia claims that US$1.017 million was transferred from the Dubai-registered company belonging to one of the daughters of the Azerbaijani President, Leyla Aliyeva, through its bank account in Pilatus Bank, to Egrant. No documentation to back up the claims has been produced so far but many details have emerged.
Magisterial Inquiry
Magistrate Aaron Bugeja was yesterday seen entering the Pilatus Bank offices. He left after around an hour. Magistrate Bugeja is leading the inquiry, launched at the request of the Prime Minister. Members of the police Economic Crimes Unit were also seen entering the bank’s premises.
Dr Muscat, through his lawyers, requested that the Police Commissioner take the allegations to the duty magistrate, and for any action to be taken should anything be found. He made the request late at night between Thursday and Friday.
Many took to social media to express outrage that the Police Commissioner, Lawrence Cutajar was eating rabbit at a restaurant on Thursday evening, while the Prime Minister gave his first official press conference on the allegations about his wife. The press conference was called minutes after the allegations were made.
Pilatus Bank footage
The PN’s television station on Thursday evening aired footage of the man identified to be the chairman of Pilatus Bank, an Iranian National named Seyed Ali Sadr Hasheminejad, together with another woman, said to be the risk manager, leaving the bank with large suitcases. They left through the back entrance at about 10pm.
People expressed their anger that the bank was only sealed off and searched, and a magisterial inquiry was ordered, after Mr Hasheminejad and his employee were seen leaving with large bags, many speculated that they could have contained relevant documents. Pilatus Bank claimed no wrongdoing.
Earlier during the week, Mrs
Caruana Galizia had implicated Mrs Muscat by uploading a picture of her, together with one of the daughters of the Azerbaijani president, Leyla Aliyeva. On Thursday morning she announced that “large sums of money” had been transferred to all three Panama based company by an offshore account belonging to Ms Aliyeva. In the afternoon she alleged that US$1.017million had been transferred to Egrant Inc and by the evening she claimed that Egrant Inc belonged to Mrs Muscat.
Egrant Inc is the third Panamanian company that was acquired by Nexia BT, whose managing director is Brian Tonna. He facilitated the acquisition of three Panama-based companies, Hearnville Inc, Tillgate Inc and Egrant Inc, through the services of Mossack Fonseca. The first two belonged to Minister Konrad Mizzi and the PM’s chief of staff Keith Schembri. Panama is a financially secretive jurisdiction, with the Panama Papers scandal exposing how the world’s elite conceal their wealth.
Full allegations made by Caruana Galizia
Mrs Caruana Galizia alleged that one of the daughters of the Azerbaijani leader, Leyla Alijeva, through an offshore company, transferred large sums of money to all three companies, and that she transferred US$1.017 million to Egrant.
She claimed that in a safe at Pilatus Bank, “documents are held pertaining to Russian clients of the bank, and to Maltese PEPs, including John Dalli, consultant to Prime Minister Muscat, and Keith Schembri…both of whom have accounts in the bank in their own personal names”.
The controversial blogger also said that in a safe in the kitchen at the bank, there are documents which prove that Egrant Inc’s shares are held by Mossack Fonseca [the Panamanian law firm at the heart of the Panama Papers scandal], as a nominee for Michelle Muscat. She claims that in another two documents, the declarations of trust and the account opening form also prove that Mrs Muscat is the ultimate beneficial owner.
Early Friday morning, she also alleged that US$400,000 was transferred from the bank account belonging to Pilatus Bank chairman’s sister, from within Pilatus Bank itself, described as a loan payment to the Michelle Buttigieg, who owns a jewellery business called Buttardi together with Mrs Muscat.