Updated | PM pays tribute to Schembri, PN says comments suggest Muscat’s involvement in offshore

Prime Minister Joseph Muscat has credited his chief of staff Keith Schembri with playing a role in assisting the private sector forges ahead with more investment and creation of jobs, and also lauded energy minister Konrad Mizzi as being politically superior to his parliamentary opponents.

Muscat was speaking on Labour Party radio One in a comment on recent announcements from leading companies and hotels of multi-million expansions.

Schembri is facing pressure to resign after he was revealed to have created an offshore company in Panama during his time as chief of staff, to hold assets or revenues from his business group and to pass them on to an offshore trust.

A MaltaToday survey today shows that half of all respondents believe he should step down from his position as chief of staff, as well as energy minister Konrad Mizzi, who owns a similar offshore set-up.

Muscat had similar praise for Mizzi: "You cannot compare Mizzi with people shadowing his portfolio, like Claudette Buttigieg, when it comes to the healthcare sector. It is a no-brainer."

In a reaction later on in the day, the Nationalist Party said Muscat's defence of Mizzi and Schembri "raised suspicinos that he is himself involved in the Panama scandal of secret companoies... a third offshore company was opened [by Nexia], details of which were given on Skype. Why is Muscat defending Schembri and Mizzi? Is he involved?"

Muscat instead hit out at Opposition leader Simon Busuttil, saying his claims that he stood for honest politics had gone up in smoke once he decided not to do anything about his deputy leader Mario de Marco, who was revealed to have only paid for €34,000 in works by a contractor once the latter was implicated in an embarrassing offshore scandal.

“Mario de Marco’s position is untenable. He was a minister for MEPA. A contractor carried out works for him; he did not pay for them. In just this case, the Opposition leader’s claims on ethics have gone up in smoke,” Muscat said.

Muscat said that his government had still sent a strong message to the electorate that the country’s economy was going strong, that jobs were being created.

“Investors indeed complain about how hard it is to find skilled workers. Playmobil’s expansion for example requires the provision of training together with unions,” Muscat said of the €30 million expansion by Brandtstatter.

Muscat will address party faithful and unions on 1 May outside the Auberge de Castille, where he said he expects a record crowd.

“This coalition of work of ours is no metaphor. We have managed to bring trade unions and employers pulling the same rope, moving in the same direction. The only snag is the Opposition leader’s negative, pessimistic, destructive and bitter sentiment. And it is a sentiment that has strengthened the government, because people don’t like that kind of 1980s tribalism,” Muscat said.

“People can see through the Opposition’s attempt to undermine the Maltese economy. They welcome criticism towards the government, but people want the economy to move forward.”

The prime minister also paid tribute to his administration’s efforts to 

We have managed to reduce our deficit and our national debt, and our efforts have been recognised by the European Commission. We want to leave wealth to our future generations. We are increasing benefits and pensions, jobs, rights, and reducing the debt – because we are making the economy grow.PM pays tribute to Schembri’s role in facilitating private sector expansion