Born in Cospicua, Schembri entered the political arena the moment Joseph Muscat ascended to the Labour Party leadership in 2008.

While relatively unknown in the political world, Schembri was a widely successful businessman establishing a group of companies, Kasco Holdings, which has varied interest in several industries in Malta.

He was immediately appointed to head the Labour Party’s energy program. However, Schembri’s greatest asset to Muscat was his impressive access to the business world, providing the soon-to-be Prime Minister with the perfect platform for his pro-business message.

Schembri also led the Labour Party’s massively successful election campaign in 2013. The landslide defeat of former Prime Minister Lawrence Gonzi and Schembri’s ability to keep the business class close to Muscat and away from PN saw him placed as Muscat’s number two.

The Fall

The Panama Papers and 17 Black

From a harmless family trust in New Zealand to an entangled web of offshore companies, with serious suspicions of money laundering linking Malta to Panama to Dubai to Azerbaijan, the Panama Papers has plagued Schembri since 2015.

Unveiling the story months before its international reveal, Daphne Caruana Galizia was the first to expose that Minister Konrad Mizzi and the Prime Minister’s chief of staff Keith Schembri had set up offshore companies in Panama.

Tillgate and Hearneville were brushed off as simple mistakes. However, the implications of the Panama Papers has shifted significantly.

Public documents show that 17 Black, a company owned by Yorgen Fenech, was set up to transfer millions to both accounts. Leaked documents also revealed how 17 Black received over €1 million in payments from Mario Pullicino, the Maltese agent of the LNG tanker in Delimara, and an unnamed Azeri national.

Fenech is an investor in Electrogas, the consortium running the Delimara power station.

Last Wednesday, Fenech was arrested in connection with Daphne Caruana Galizia’s assassination. This eventually led to his own arrest, and resignation.

Passport kickbacks, Adrian Hillman, and Pilatus Bank

Pilatus Bank and Keith Schembri go hand in hand. Beyond holding an account there, Schembri is believed to have used the controversial bank to receive kickbacks from Brian Tonna of Nexia BT on the sale of three passports to Russian citizens.

Meanwhile, he is also alleged to have used offshore companies to pay former managing director of Times of Malta Adrian Hillman for a commission on printing equipment sold to the newspaper by Schembri.

Both are currently undergoing magisterial inquiries. A report into the Hillman case by the Times of Malta was never published.

And what about his business empire?

Kasco Paper is undoubtedly the flagship product, Malta’s leading paper and print supplier. In an ironic twist, most material newspapers are printed on are provided by none other than Kasco. Its recycling arm is also a significant revenue generator.

Crane Currency, a currency-printing facility set up in Malta during Muscat’s tenure, gets it equipment serviced by Kasco.

Schembri’s also plays a major role in Malta’s food and drinks industry, working closely with both the country’s hospitality and retail sectors. Meanwhile, he also has a company focused on graphic design.

LOFT Designs and their eponymous cafe is also widely popular, even designing the interiors of a highly controversial project jutting out into Balluta Bay.

His wife, Josette Schembri Vella, runs Temple Concierge Malta, a company which offers a range of services to the ultra-rich, notably facilitating the IIP (Individual Investment Programme) or cash-for-passports scheme.

Conclusion

There’s no doubt that Schembri’s influence is far-reaching. With his finger in most industries across the island and a long-standing relationship with Muscat, he was primed to help lead the Labour Party into a new pro-business attitude that would dominate the political scene for the past decade.

But that influence comes with at a price, seemingly ready to bend the rules to suit himself and his inner clique, whatever that cost. Be it that’s siphoning of public assets to their chosen bidder or the alleged assassination of a journalist.

How far-reaching his influence and questionable business dealings were remains to be seen as the investigation unfolds.

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