In the months before her murder in 2017, Maltese journalist Dafne Caruana Galizia was on the trail of an offshore company called 17 Black Limited, reports Free Europe.
She did not know who owned the company registered in the United Arab Emirates (UAE), but she was sure that it was set up to make corrupt payments to Malta's leaders through it, which she wrote about in her blog, without proof.
In February 2017, Dafne, who focused on corruption, wrote about a mysterious company originating from Dubai.
In her article, Galicia wrote that there is a connection between that company and politicians from Malta, but did not offer concrete evidence, considering that she could not reveal who owned the company.
Eight months later, Caruana Galicia was killed by a bomb planted in her car. The body was found by her son Matthew Caruana Galicia, also an investigative journalist.
Reuters later discovered in its investigation that one of the richest entrepreneurs in Malta, Jorgen Fenek, is the owner of the 17 Black company. Fenek was arrested at the end of November 2019 for involvement in the murder of a journalist, and was later officially charged.
He denies all the charges.
Fueled by the country's political and legal crisis over the investigation into the murder of investigative journalist Daphne Caruana Galizia, the country's Prime Minister Joseph Muscat resigned earlier this year.
Secret profit of 4,6 million euros
The activities of 17 Black Limited have remained shrouded in secrecy, but research by Reuters and The Times of Malta has revealed new evidence.
In December 2015, 17 Black companies made a previously undisclosed profit of 4,6 million euros, when the state energy company Enemalta bought a wind farm in Montenegro, according to Reuters in its investigation.
The purchase followed several trips to Montenegro and negotiations led by the then Minister of Energy of Malta, Konrad Mici.
That same month, an accountant who worked for Mizzi and then-chief of staff to Prime Minister Keith Schembri wrote an email saying the two were to receive a payment from 17 Black for unspecified services.
Schembri confirmed to Reuters in April 2018 that the companies he owns had “drafted a business plan” with 17 Black that was not implemented, but did not elaborate. He too is now under investigation for potential involvement in the murder of Caruano Galizia. He denies having anything to do with the murder.
Former Minister of Energy Mici also states that he was not involved, nor that he knew anything about the murder of the journalist.
He also told Reuters that he had no connection with 17 Black and disputed that "my provider's email states that he could make a profit."
When asked about his travels to Montenegro, Mici answered:
"My involvement in this project was in the capacity of minister responsible for Enemalta, setting the overall energy policy." He added that he was not involved in corrupt contracts.
Reuters found no evidence that 17 Black companies paid Schembri and Mizzi.
Involvement of Montenegro
The Montenegrin "Možura" wind power project was launched in 2010, as the first major project of the renewable energy system in Montenegro.
The concession for the construction and operation of the wind farm was won by the Spanish company Fersa Renovables, which later merged with another company, Audax Renovables.
In November 2015, the Maltese government announced that the state-owned company Enemelta was buying this project.
Accounts published by Fersa and corporate records in Montenegro revealed that Fersa sold 99 percent of its stake in Možur to an intermediary, a Seychelles-based company called Cifidex Ltd. The remaining one percent of the company's share, which was owned by a Montenegrin company, was also sold to Cifidex.
The Montenegrin Center for Investigative Journalism states in its investigation of the wind farm contract that the partner company in this contract was "Čelebić" from Podgorica, which, as they stated to the Montenegrin CIN, "have not been part of the project for a certain period of time."
According to the knowledge of CIN, the contract provided state land for lease for a period of 20 years, and the project was supposed to be worth 75 million euros.
According to data in public records, Cifidex bought Možura shares on December 10, 2015 for EUR 2,9 million. Two weeks later Cifidex sold its shares to Enemalta. In their accounts, Enemalta stated that they paid 10,3 million euros, three times the original price.
Ownership of Cifidex, as well as possible earnings, have not been disclosed in public records. Reuters also could not determine how or why Cifidex was involved in the sale.
Audax also declined to share details of Cifidex's ownership with Reuters. They stated that they sold the wind farm for strategic reasons.
The Montenegrin company, which had a one percent stake in the company, also did not comment on this deal. Although Enemalta promised to respond to questions from Reuters, at the time of publication of the research, it did not offer additional details about the wind farm transaction.
Involvement 17 Black
Sources who were directly involved in the transaction told Reuters how it all happened: Cifidex bought shares from Fersa for three million euros borrowed from 17 Black. After Cifidex sold the shares to Enemalta, they returned three million 17 Black to the company, plus an additional 4,6 million euros of "profit share", sources told Reuters.
Reuters could not determine what 17 Black did with the profits.
Two other people who had access to information on 17 Black's bank accounts in Dubai confirmed to Reuters that the company transferred over three million euros to Cifidex in November 2015.
Cifidex paid a total of 7,8 million euros to 17 Black by May of the following year. A third source told Reuters they paid 7,6 million.
One person with direct knowledge of the business said Cifidex is owned by Turab Musayev, CEO of SOCAR Trading, the Swiss branch of Azerbaijan's state oil company SOCAR.
Musajev, who also has British citizenship, was a business associate of Fenek, the owner of 17 Black.
The two were directors of the consortium that built a gas power plant worth 2017 million euros in Malta in 450. According to public records, Musajev represented SOCAR Trading, which owned one third of the consortium.
Musayev's UK-based legal representative, Atkins Thompson, says that Musayev had no reason to avoid doing business with Feneh.
"As you can imagine, our client knew nothing, suspected and had no reason to believe that Mr. Fenech had any involvement in this crime," the attorney's office told Reuters.
Cifidex had its own independent management, the letter further states. However, they did not directly refer to Musaje's ownership of Cifidex or answer questions about his role in the Možura deal.
Fenek, who is in prison awaiting trial for murder, did not respond to questions sent by Reuters through his lawyer.
The company SOCAR Trading told Reuters that they were not involved in, had no knowledge of the Možura deals, and were not aware of the existence of 17 Black.
In a statement, they stated that they hired Musaev as a consultant "enabling him to perform tasks outside of his official duties." They confirmed that they appointed Musaev to the position of director of the consortium where he served together with Fenek.
Reuters also asked Schembri, Mitzi and former Prime Minister Muscat whether they had any knowledge that Musayev, 17 Black or Fenek were connected to the wind farm project.
Mici and Muscat say they were not aware of it, Schembri did not respond.
Joseph Muscat, who opened the wind farm in November 2019, shortly before leaving his position, wrote in a statement: "My role was to nurture relations with the government of Montenegro at the presidential and prime ministerial level, which was my duty as prime minister. ”
He also added that, according to his knowledge, the Prime Minister's former chief of staff, Keith Schembri, was not involved in the negotiations on the annual power plant project in Montenegro.
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