Keith Schembri, Konrad Mizzi tied to wind farm deal’s ‘concealed €7.5m profit’ 

Keith Schembri and Konrad Mizzi played an active role in plans by “conspirators” to generate a €7.5 million “concealed profit” from an Enemalta wind farm deal, according to investigators.

The ex-government officials planned to receive “illicit funds” from the deal via once-secret “money-laundering structures” in Panama, financial experts allege.

These profits were generated by “overpricing” the amount of money paid by state-owned energy company Enemalta to buy shares in a Montenegro wind farm back in 2015.

The Montenegro wind farm scandal centres on Enemalta’s acquisition of the Mozura wind farm project in Montenegro. The deal has been under scrutiny for significant financial irregularities, lack of due diligence and potential corruption involving Maltese government officials.

Now, financial experts say in a magisterial inquiry report that Schembri and Mizzi took an “active part” in the planning and implementation of the process. Others who “assisted” in this process include Chinese national Cheng Chen, murder suspect Yorgen Fenech, accountant Brian Tonna, ex-Electrogas director Turab Musayev and Enemalta’s then board of directors, investigators said.
‘I assume Konrad has briefed you’

Chen is alleged to have asked Nexia BT accountant Brian Tonna to draw up a valuation document to “justify” the millions of euros Enemalta would pay to buy the wind farm. “I assume Konrad has already briefed you about the situation: we need a valuation document to justify the acquisition fee of the Montenegro project,” correspondence quoted by experts in the inquiry says.

Chen’s involvement in the deal is significant due to his links with a Hong Kong company called Macbridge. Macbridge was named alongside Fenech’s 17 Black in a Nexia BT e-mail detailing plans for Schembri and Mizzi’s Panama companies to receive up to €2 million yearly.

Inquiry experts said it is likely Macbridge formed part of the “money-laundering structure” to pass on money from government energy deals.

Schembri, Mizzi, Fenech and Tonna are all facing charges as a result of the inquiry into the alleged plans, which was concluded in December. They deny the charges.

The Montenegro deal is subject to its own separate inquiry.

Schembri, Mizzi and Macbridge

An investigation by Times of Malta and Reuters in 2021 uncovered how Macbridge was fronted by Chen’s mother-in-law Tang Zhaomin.

Further links between Zhaomin and Schembri were discovered by financial experts, who found the ex-OPM chief of staff was designated to “sign a memorandum of understanding” with Zhaomin on behalf of the government.

Schembri told a public inquiry into the October 2017 murder of journalist Daphne Caruana Galizia that he was unaware who owned Macbridge. Fenech stands accused of complicity in the murder. He denies the charges.

Financial investigators questioned the credibility of Schembri’s testimony, citing evidence showing he was aware of Macbridge’s existence from the outset and that the company’s “beneficial” or real owner was Chen.

As evidence of this, investigators cited a chain of e-mails “referring” to Macbridge that Schembri, Mizzi and Chen were all a party to.

How did the scheme work?

Instead of buying shares in the wind farm “directly” and “transparently” from its owner, Enemalta bought them through a third-party offshore company called Cifidex. Investigators allege Chen was “heavily involved” in Enemalta’s plans to buy the shares via Cifidex.

Cifidex, owned by Musayev, was introduced as the means of “overpricing” the wind farm which was bought by the company for €2.9 million and sold to Enemalta for €10.5 million. Investigators say Cifidex took a “loan” from Fenech’s company 17 Black to purchase the wind farm.

As a result, this allowed Fenech to make a profit from the deal once the loan was repaid to 17 Black together with a €4.6 million profit.

Many of these details have been exclusively revealed by Times of Malta over the years.

An internal probe by Enemalta found “omissions” and a “lack of professional scepticism” in the way Enemalta’s board went about the deal.

The “passive stance” taken by Enemalta during the negotiations was highlighted by the internal audit. It highlighted how negotiations were instead led by Chen.