Update 2 | Marlene Farrugia presents no-confidence motion against Keith Schembri

Independent MP Marlene Farrugia has tabled a motion of no-confidence against the Prime Minister’s chief of staff Keith Schembri.

The Nationalist Party said in a statement that its MPs will vote in favour of this motion, arguing that Schembri's position has become untenable.

"Schembri's position has been untenable for the past ten weeks, since it was revealed that he and [minister] Konrad Mizzi had opened secret companies in Panama," the PN said. "It has since also been revealed that Schembri allegedly bribed one of Allied Newspapers' directors and that he owns a secret company in the British Virgin Islands, into which $750,000 was transferred in 2014."

Earlier, the former Labour MP said on Facebook that she would be presenting the motion “on behalf of the Maltese and Gozitans of goodwill”.

Farrugia had already filed a no-confidence motion against Minister Konrad Mizzi.

The Civil Society Network (CSN) expressed its support of the motion.

"Schembri, as the prime minister's chief of staff, and Konrad Mizzi, as an OPM minister, have refused to resign despite the fact that they feature in the PanamaPapers scandal. Prime Minister Joseph Muscat keeps defending them, and forced Labour members of parliament to vote in favour of Mizzi in the previous vote of no-confidence against him," CSN spokespersons Michael Briguglio, Monique Agius and Karl Camilleri said.

"If Prime Minister Joseph Muscat truly loves his country and his party, he should allow the party whip to allow a free-vote among Labour MPs. Civil Society Network appeals to all members of parliament to vote for Malta and therefore support Farrugia's vote of no confidence in Schembri."

The Opposition has called the position of Schembri within the Office of the Prime Minister untenable and has repeatedly called on the Prime Minister to sack his chief of staff. Last month, Farrugia also took part in an anti-corruption protest organised by the Nationalist Party.

As the Panama Papers have revealed, Schembri opened an offshore company – Tillgate Inc – in Panama. The company was purchased from a Mossack Fonseca related firm, ATC Administrators and owned by a trust in the New Zealand.

In 2011, Schembri opened a company in the British Virgin Islands, Colson Services Ltd.

Schembri, who resigned his directorships in the Kasco group upon his appointment as chief of staff in March 2013, is still a shareholder overseeing the expansion of his business group’s activities.

On 14 March, 2015, Schembri instructed his auditors Nexia BT to create a trust that can consolidate his business group’s assets together with assets held in a local bank’s trust, for estate and succession planning.

“Schembri was advised to place his commercial interests in a company that would be settled in a trust. On 2 July, 2015 he acquired the [Panamanian] shelf company Tillgate Inc, which as Nexia BT has stated it already owned so as to service its clients efficiently; and on 22 July he created Haast Trust in New Zealand and transferred the company to the trust,” a statement released in April by his legal advisors read.

“Mossack Fonseca was engaged to open a bank account for this structure. The banks contacted demanded deposits of millions; today this company and trust are still without a bank account or any money. He has never excluded depositing cash and investments held in local banks, in his trust.”

Schembri said that he would pay any tax on his worldwide income.