‘There is already reputational damage’ for Malta’s financial sector

Asked about the possible fallout from Malta not cooperating with the investigation, Mr Giegold spoke of reputational damage:

“There is already reputational damage for the financial sector in Malta since the Panama Papers, but also because of some more problems before that. There is also more attention to a lack of effective anti-money laundering policies and unfair tax practices, so not cooperating with the EP is of course adding to that reputational damage. We have seen with other places and this can be harmful.

“And of course we have no power to sanction. Europe is not a state so unlike national inquiry committees, we cannot force anyone, but the reputational damage is being done. If you look at the Prime Minister, he made a very pro-European speech and it looks a bit hypocritical to praise the EP while at the same time ignoring our wishes for cooperation.”

Asked whether he thinks this is damaging the EU’s reputation, especially because Minister Konrad Mizzi has been chosen to chair the EU energy council, Mr Giegold agreed, adding: “As you know he has already been the subject of negative reports in the media, and until Konrad Mizzi is cleared, and because the respective report has not been published, there will be reputational damage. I can only call once again on the Maltese government to publish the report by Manfred Galdes in order to clarify what has happened.”

To the fact that Panama-based companies are not obliged by law to cooperate with investigations, and that Malta and Panama have no information-sharing agreement on such matters, Mr Giegold said that one would expect somebody close to the Prime Minister and in government to cooperate in full.

“I ask myself: if the report has not been published, then why has Parliament not called its own investigation? The Maltese Parliament could take action in order to shed light on what has happened within the framework of the Panama Papers. Parliament has all the means to make sure that members of the government are fully cooperative.”

He concluded by saying: “I will continue working on this, I will not give up so quickly and I am not known for this. I am quite stubborn when it comes to financial crimes.”