Enemalta’s controversial purchase of a Montenegrin wind farm was under-declared by €6.8 million on contracts, an internal probe has uncovered.
The Times of Malta reports that while Enemalta purchased the project from Cifidex for €10.3 million, the sale priced on the contract was €3.5 million.
Cifidex was funded by 17 Black, the infamous Dubai-based company belonging to Yorgen Fenech, the Tumas Group business charged in connection to the Daphne Caruana Galizia assassination.
Email exchanges flagged by the probe allegedly indicate that the change in price could have been an attempt to avoid full capital gains tax. The report says that a legal opinion expressed “serious reservations” that there could be “further additional compensation” from Enemalta.
It recommends that Enemalta explore examine whether it could liable to any damages or legal responsibility for the under-declaration.
Cifidex first signed a promise of sale agreement with Fersa for €2.9 million in February 2015 to buy 99% of the project’s shares. A Montenegrin company held the remaining 1%.
The deal was completed in December 2015. Just two weeks later, Cifidex sold those shares to Enemalta for €10.3 million. Cifidex returned around €3 million to 17 Black and made an alleged €4.6 million in profit.
Cifidex, was once owned by Turab Musayev, a former ElectroGas director. Musayev has denied any wrongdoing. He said Cifidex had its own independent management and that his business with Fenech involved due diligence from reputable and established bankers, accountants and lawyers.
Fenech’s 17 Black was also listed as the target clients for Tillgate and Hearnville, the two Panamanian companies owned by disgraced former Prime Minister’s chief of staff Keith Schembri and former minister Konrad Mizzi, by December 2015.
According to one e-mail found in the Panama Papers, Schembri and Mizzi were set to receive payments of up to $2 million from 17 Black.
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