Konrad Mizzi

Konrad Mizzi (born 4 November 1977) is a former Maltese politician and an independent Member of Parliament. He served as Minister for Energy and the Conservation of Water between 2013 and 2014, Minister for Energy and Health from 2014 until 2016, and as a Minister within the Office of the Prime Minister in April 2016.[3][4]

Konrad Mizzi MP
Minister of Tourism
In office 9 June 2017 – 26 November 2019
Prime Minister	Joseph Muscat
Preceded by	Edward Zammit Lewis
Succeeded by	Julia Farrugia Portelli
Minister within the Office of the Prime Minister[1][2]
In office 28 April 2016 – 3 June 2017
Minister of Energy and Health
In office 1 April 2014 – 28 April 2016
Prime Minister	Joseph Muscat
Preceded by	Godfrey Farrugia
Succeeded by	Chris Fearne
Minister of Energy and Water Conservation
In office 13 March 2013 – 28 April 2016
Prime Minister	Joseph Muscat
Preceded by	Position Established
Succeeded by	Joe Mizzi
Member of Parliament
In office 13 March 2013 – present
Personal details
Born	(1977-11-04) 4 November 1977 Paola, Malta
Political party	Labour Party (2013-2020) Independent Labour (2020-present)
Spouse(s)	Sai Mizzi Liang
Alma mater	University of Malta University of Nottingham

Mizzi was re-elected on 3 June 2017 by four times as many votes as the 2013 election.[5] He was then appointed by Prime Minister Joseph Muscat to serve as the Minister for Tourism, officially since 9 June.[6] Mizzi resigned from the role of Minister for Tourism on 26 November 2019.[7]

Early life

Education and family

Mizzi was educated at the De La Salle College and completed his sixth form at the Paolino Vassallo Upper Lyceum. He graduated at the University of Malta, reading for Undergraduate degree, and then furthered his education with a post-graduate studies at the University of Nottingham, where he achieved his Masters in Strategic Management. He furthered his education with a Doctorate at the University of Nottingham. Mizzi was awarded a Chevening Scholarship from the Foreign and Commonwealth Office in the United Kingdom and holds a Diploma in Finance.[8]

Career before joining politics

Mizzi has led major projects and initiatives across different sectors including public, infrastructure, telecommunications and enterprise promotion.[8]

Mizzi was a Partner and Head of the Energy and Infrastructure Practice for the EMEA Region (Europe, Middle East and Africa) with Pcubed, a global leader in programme management. He has previously held senior roles with Deloitte and Touche and British Telecom (ProGramme DIrector) in the United Kingdom. In the United Kingdom Mizzi led various change projects which included the forging of an Alliance between seven energy companies which improved services and realised large savings. He worked with Regional Government leaders of which aim was to improve deprived areas.[8]

He was a member of a team which established the Malta Enterprise. He was a consultant to the Office of the Prime Minister where he led a number of projects which, included the first public-private partnership to improve landscaping of the main roads in Malta. Mizzi held the post of Chief Information Officer at Enemalta at the age of 26.[8]

Politics

Mizzi was elected in the Maltese Parliament from the Fourth District (Paola, Gudja, Ghaxaq, Tarxien, Santa Lucija and parts of Marsa and Fgura) in March 2013.[9] He was re-elected in the 2017 election from the same district.[5]

2013 general election

Mizzi was appointed by the President, on advice of the Prime Minister Joseph Muscat, as Minister for Energy and the Conservation of Water on 13 March 2013 following the 2013 general elections. On 1 April 2014, Mizzi was given the responsibility for the Health and Energy portfolio. On 28 April 2016, his position was changed to Minister within the Office of the Prime Minister. This gave him the responsibility to carry out high-profile projects.[10]

2017 general election

After the 2017 election, Mizzi was then appointed Minister for Tourism.[6] Immediately in his new role, he has set out an ambitious business and growth strategy for Air Malta, which builds on its current strengths including punctuality and good service. In view of this, Air Malta operates regular flights and will continue to increase their frequency to the region's key airports. One of the clear examples of decisions taken by the new Air Malta board appointed by Minister Konrad Mizzi, was the immediate re-introduction of the Frankfurt route. The Minister made it also clear that Air Malta will be introducing new routes, and announced an increase in its fleet as part of the new commercial strategy being adopted. The Minister together with Air Malta will in the coming months negotiate collective agreements, which will provide the airline with more flexibility that is required for growth and will also be fair to its employees.[11]

Mystery Illness

The Labour MP has been absent from parliament since early March, and returned to Malta on the 9th of June 2020. He told reporters he fell ill while abroad on duty and stayed there until he got well. He declined to answer more questions saying he had been on a long trip and was tired. He said "we can talk once quarantine is over".[12]

Expulsion from the Labour Party

On the 23rd of June, 2020, Mizzi was expelled from the Labour Party's parliamentary group; of the 73 votes, 71 went against Mizzi. Ahead of the meeting, sources had said that there seemed to be "widespread agreement that he [Mizzi] has to go".[13]

Speaking after the vote, the Prime Minister said that the decision to sack Mizzi was taken due to Mizzi's ties to the Panama Papers and Yorgen Fenech's company 17 Black.

Minister for Energy and Health

Energy

Electricity tariffs

Upon assuming office, as the Minister for Energy, Mizzi started implementing the Government’s energy plan with the primary aim of reducing utility tariffs. Following this implementation the government is calculated to have injected about €80 million in the national economy. Previously utility tariffs in Malta were considered amongst the highest tariffs in Europe, and following the reductions utility tariffs become the fourth cheapest in the European Union.[14] This measure enabled the local industry to become more competitive.[15]

This saw the transformation of the energy in Malta, contrasting with the situation when Mizzi was given the responsibility when Enemalta was close to declare bankruptcy, with €840 million in debt and was consecutively downgraded by Standard & Poor’s. This affecting the credit ratings of the country at the time.[16][17][18]

Enemalta

The Power & Gas project being developed in Malta

In December 2014 Shanghai Electric signed an agreement with the Government of Malta[19] where it acquired a minority stake in the local energy producer Enemalta.[17][20][21] The acquisition was valued at €250 million. The restructuring envisaged new investment in the local distribution system, as well as transition from oil-fired energy generation to cleaner technology, such as the Malta-Sicily interconnector, gas-fired plants and renewable energy sources. This is expected to increase the grid redundancy and flexibility. The Government of Malta retained the majority of share of the energy company.[22]

Shanghai Electric is expected to be investing in the conversion to gas of an existing power plant which at present is powered by heavy fuel oil, valued at around €70million.[19] In 2016, and following the investment by Shanghai Electric and the restructuring process that followed, Standard and Poor's upgraded Enemalta's rating to BB- with a stable outlook.[23] Enemalta and Shanghai Electric established a joint venture to tap into renewable energy markets in Europe. They are jointly responsible for the development of the Mozura Wind Park project in Montenegro.[24][25]

Marsa power plant

Change in CO2 emissions, 2015/2014 – Source: Eurostat

The third pillar of the energy plan will also result in the closure of the Marsa power plant which has been operating since 1969. The Marsa power plant has been shut down, on cold standby, pending the completion of the new gas fired power plant.[26] The local Opposition party criticised the Government of Malta that this plant has been shut down due to measures implemented by the previous Government and not due to the current Government’s plans. However, the current Government’s plan envisages the demolition of the 1992 Delimara Phase 1 Heavy Fuel Oil power plant.[27]

Demolishing the 1992 power plant, would be impossible to achieve without a new power plant due to N-1 requirements.[28] Over 700,000 tonnes CO2 were reduced by shutting down the Marsa power plant.[29] Statistics from the Eurostat confirmed that Malta experienced the highest reduction in emissions in all the European Union.[30][31]

Gas power plant and LNG facilities

The second pillar that would be sustaining cheaper utility tariffs in the long-term was the development of a gas fired power plant. The development of this project is based on a private-public partnerships model. The Delimara Power and Gas project is being developed by Electrogas Malta Limited, a consortium that includes SOCAR, Siemens and Gem Holdings. The consortium has been restructured following Gasol departure.[32] Enemalta would be purchasing electricity. The local Opposition Party has been critical of this project since its details were announced, including the procurement process. However, following parliamentary questions in the European Parliament by Malta’s European People’s Party, the European Commission stated that there were no procurement violations.[33]

Electrogas Malta Limited has recently won the award for Best European Energy Project which is organised by IJ Global. The project is expected to contribute greatly to the decrease in particulate matter by 90%.[34] Through the Delimara Power and Gas project, Malta will be conforming for the first time, with the N-1 principle which is stipulated by European Union directives.[28] Such concept enabled Malta to shift its financial resources onto other sectors, while simultaneously enjoying the benefits of modern and efficient infrastructure. The development of the gas fired power plant and the conversion to gas of another power plant is in line with the European Union Energy policy of the European Union, that encourages the shift to gas in the energy sector. Mizzi is also responsible for Projects Malta, the company tasked with overseeing private-public partnership initiative across a whole spectrum of economic sectors including tourism and other infrastructure projects. [35]

The Gas power plant was officially opened in April 2017. The new power station was inaugurated minutes after the 25-year-old Delimara I power station was switched off. The old power station chimney, a 150 m structure in Malta will be demolished in the coming months.[36]

Health

On assuming the health portfolio in 2014, Mizzi embarked a transformation of the health sector by attracting a private investment worth €200 million to a public-private partnership initiative. This investment was presented as a development of a new world-class hospital on the island of Gozo, with the former St. Luke's Hospital being converted into a new rehabilitation hospital.

Barts and The London School of Medicine and Dentistry will manage a new medical school as part of this project.[37]

Vitals Global Healthcare (VGH)[38] was selected as the preferred bidder for the €200 million investment into St Luke's Hospital, the Karin Grech Rehabilitation Hospital and Gozo General Hospital. Vitals Global has also teamed up with Partners Healthcare as part of this project.[39] In July 2020, an investigation by the national auditor found that Vitals Global Healthcare should have been disqualified from bidding for the takeover of three state hospitals. [40] The damning report found a succession of serious shortcomings in the process to award VGH a 30-year concession to run Gozo General, St Luke’s Hospital and Karin Grech hospitals despite having no prior experience.

The report by Charles Deguara – the first of three on the 2015 deal – also found:

• the concession appeared to be “predetermined to ensure an already agreed outcome”;
• no minister authorised the deal, with the blame resting “squarely” on former Health and Energy Minister Konrad Mizzi;
• “serious shortcomings" in the bid that an evaluation team “failed to address”;
• a “grossly inadequate” due diligence process;

Responding to the report, Prime Minister Robert Abela said political responsibility had already been shouldered with the "dismissal of the former minister who had been responsible for the project".

As a result of the above, Konrad Mizzi will face a magisterial inquiry over hisinvolvement in the hospital privatisation deal after a criminal court rejected his appeal.[41] Rule of law NGO Repubblika requested the inquiry to establish if Mizzi, amongst others, gave the group of investors behind VGH an unfair advantage in the contract’s selection process. The NGO also requested for a European arrest warrant against Mizzi whilst he was unable to travel to Malta from the UK due to 'sickness'.

Mizzi also worked on several other initiatives, which include out of stock medicines, the emergency department and waiting lists. In 2015, there were no out of stock medicines registered in Malta under the Pharmacy of Your Choice scheme[42]

Minister for Tourism

Mizzi was appointed Minister for Tourism on 8 June 2017 following the 2017 General Election.[43] Apart from Tourism entities and Air Malta, Public Private Partnerships and external transport were included in his portfolio.[44]

Air Malta

Shortly upon assuming office, Mizzi claimed his priority over the next 12 months is to restructure the national airline and ensure it becomes financially viable before a strategic partner is roped in.[45]

On 12 July 2017, Mizzi appointed a new board of directors, with Dr Charles Mangion being the new chairman. Mizzi claimed that he would be working hand in hand with the new board of directors on the next phase of the Air Malta transformation."[46]

Since Mizzi took over responsibility of Air Malta, the airline re-opened its Tunis and Frankfurt routes. The airline later made announcements on several other new routes, namely Manchester, Casablanca, Lisbon, St Petersburg, Kiev and Venice. Air Malta announced two additions to its fleet, by increasing to a total of 10 aircraft.[47][48][49] On 19 June 2018, Air Malta received its first Airbus A320 Neo, branded in Nickelodeon special livery.[50][51][52][53][54]

Mizzi has claimed that Air Malta can be a niche carrier based in Malta to help passengers connect between Europe and North Africa.[55] On 10 September 2017, Ryanair announced its intentions of collaborating with Air Malta to start selling Air Malta flights on its online platform, and to collaborate on flight connections.[56]

In January, Mizzi announced that a new government-owned company by the name of Malta Air Travel Ltd with a capital value of €70 million has been set and will be taking over the landing rights that Air Malta uses in some of the biggest airports around Europe. The new company will be leasing the landing slots Air Malta used in airports like Heathrow back to the national airline for its exclusive use.[57][58]

Malta Tourism Authority

In order to handle enforcement, Mizzi has claimed that a 'multi agency team' will be introduced to ensure that there is better coordination and regulation of beaches before new concessions are granted. This will cover key stake holders such as the Malta Tourism Authority, Transport Malta, and the Lands department.[59]

One of the first initiatives taken by Mizzi was a plan to appoint town managers within the Malta Foundation for Tourism Zones. Paceville, which is a main touristic area in Malta, will be the first to have a designated town manager. These town managers will have their primary responsibility to maintain tourism areas and flag any possible irregularities.[60]

Route development

Mizzi worked on several new routes to and from Malta with different airlines. Apart from the increase in Air Malta flights, Mizzi announced new flights with Easyjet,[61] and a pack of 12-new flights with Ryanair, following an investment of more than 100,000 Euro in a new aircraft based in Malta.[56] These are additional from the new flights and routes announced by Air Malta which has increased 21 new routes as of September 2018.

Malta Air

Mizzi spearheaded negotiations related to Malta Air with low-cost airline giant Ryanair. Via an agreement with Government, Ryanair would invest around €1 billion which includes 6 Boeing 737 aircraft, and their operations into Malta. A group of around 60 cabin crew and pilots who work for Ryanair subsidiary Malta Air were be made redundant in June 2020.[62]

Controversies

Panama Papers

Mizzi was named in the Panama Papers in April 2016.[63] It was revealed that Mizzi had acquired a Panamanian company called Hearnville Incorporated. Its shareholder, Orion Trust Limited, was established in New Zealand through a Maltese financial services company.[64] The trust was purchased for Mizzi through law firm Mossack Fonseca.[65]

Criticism from the Maltese opposition party, and the general population was expressed and[66] a motion of no-confidence was put forward. The motion was defeated and all Government Members of Parliament voted against this motion.[67] Mizzi was nevertheless criticised by a number of high-level Labour Party figures.

Mizzi had publicly disclosed his structure in his declaration of assets.[67] Mizzi said that the fund was solely intended to protect his family's assets, which include property in Malta and in London.[64][68] Mizzi laid out the details of the trust and the company to the Maltese Parliament in February 2016.[69] Mizzi had declared in March 2016 that Hearnville Inc was a shell company which held no assets.[70] Mizzi requested that the Commissioner for Revenue and an international tax audit firm to[71] carry out a tax audit on his assets. Since the audit is complete, he closed down Hearnville Incorporated.[72] Mizzi insisted that the financial structure he set up was not illegal and he did not attempt to hide it from the public.[73]

References

1. "Hon. Konrad Mizzi MP – Minister within the Office of the Prime Minister". Parlament Malta. 29 April 2016. Archived from the original on 26 March 2017.
2. "Konrad Mizzi, Keith Schembri to remain at Castille; Mallia returns to Cabinet". The Malta Independent. Retrieved 24 April 2017.
3. "Portfolio". Government of Malta. Retrieved 24 April 2017.
4. "Konrad Mizzi, Keith Schembri to remain at Castille; Mallia returns to Cabinet". The Malta Independent. Retrieved 29 April 2017.
5. "Konrad Mizzi receives 4,968 first count votes on 4th district, four times more than 2013". Malta Independent Online. Retrieved 5 June 2017.
6. "New Cabinet announced, PN reacts as Konrad Mizzi and Keith Schembri are retained". Times Of Malta. Retrieved 8 June 2017.
7. "Konrad Mizzi resigns, Chris Cardona 'suspends himself'". Times of Malta. Retrieved 20 January 2020.
8. "Dr Konrad Mizzi".
9. "Electoral Commission of Malta". electoral.gov.mt.
10. "Updated (3): Konrad Mizzi, Keith Schembri to remain at Castille; Mallia returns to Cabinet – The Malta Independent". www.independent.com.mt.
11. "Air Malta to increase its fleet to nine aircraft".
12. "Konrad Mizzi returns to Malta". Times of Malta. Retrieved 3 August 2020.
13. "PL votes to kick Konrad Mizzi out". Times of Malta. Retrieved 3 August 2020.
14. "Energy price statistics – Statistics Explained". ec.europa.eu.
15. Ltd, Allied Newspapers. "Electricity tariff reduction will save businesses €50m".
16. Ltd, Allied Newspapers. "Updated: S&P downgrades Enemalta's rating".
17. "S&P retains negative outlook on Enemalta – The Malta Independent". www.independent.com.mt.
18. Ltd, Allied Newspapers. "Updated: Government to absorb some of Enemalta's costs – will not raise tariffs".
19. "Updated (2): Agreement on strategic investment in Enemalta by Shanghai Electric Power signed – The Malta Independent". www.independent.com.mt.
20. Ltd, Allied Newspapers. "Updated: S&P downgrades Enemalta's rating".
21. Ltd, Allied Newspapers. "Updated: Government to absorb some of Enemalta's costs – will not raise tariffs".
22. Ltd, Allied Newspapers. "Shanghai Electric transfers €250m for Enemalta stake".
23. "[WATCH] Enemalta's credit rating upgraded, outlook stable".
24. "[WATCH] Mizzi expects Montenegro wind farm to be fully operational by end of 2017".
25. "Možura wind power plant to be built by a state-owned company from Malta". www.gov.me.
26. "Marsa power station ends 62 years of electricity generation".
27. Ltd, Allied Newspapers. "Enemalta prepares to demolish first phase of Delimara power station, including its tallest chimney".
28. REGULATION (EU) No 994/2010 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC
29. "761,000 tonnes less of carbon dioxide in the air after closure of Marsa power station – TVM News".
30. "Early estimates of CO2 emissions from energy use".
31. "Malta registers highest drop in carbon dioxide emissions in 2015 – The Malta Independent". www.independent.com.mt.
32. "Updated: Gasol out of Electrogas consortium, Opposition says project has always been a farce – The Malta Independent". www.independent.com.mt.
33. "Delimara power station: Brussels finds no violation of procurement rules – The Malta Independent". www.independent.com.mt.
34. "Malta gas power station consortium wins award for Best European Energy Project – TVM News".
35. "Updated: Government aiming to take public-private partnerships to next level through Projects Malta – The Malta Independent". www.independent.com.mt.
36. Ltd, Allied Newspapers. "Electrogas power station is inaugurated as the 'cancer factory' is shut down".
37. Government's agreement with Barts a 'memorandum of understanding'
38. "St Luke's hospital to be transformed into 'state of the art' rehab centre".
39. International, Partners HealthCare. "Partners HealthCare International and Vitals Global Healthcare Sign Agreement to Improve Health Care Services in Malta". www.prnewswire.com.
40. "'Collusion': Vitals should have been barred from hospitals bid, NAO finds". Times of Malta. Retrieved 3 August 2020.
41. "Three ministers to face criminal inquiry over Vitals deal, appeal rejected". Times of Malta. Retrieved 3 August 2020.
42. http://www.maltatoday.com.mt/news/national/60298/no_outofstock_medicine_health_minister_announces#.Wm8juLaZMlU
43. Ltd, Allied Newspapers. "New Cabinet announced, PN reacts as Konrad Mizzi and Keith Schembri are retained".
44. "Portfolio". tourism.gov.mt.
45. Ltd, Allied Newspapers. "Watch: No strategic partner before Air Malta is restructured – Konrad Mizzi".
46. "Updated: Charles Mangion appointed Air Malta chairman, Maria Micallef to head NOC – The Malta Independent". www.independent.com.mt.
47. "Updated: First decision by Air Malta new board – Frankfurt route to be restarted – The Malta Independent". www.independent.com.mt.
48. "Air Malta Celebrates start of new Tunisia Route with a Special Offer". www.airmalta.com.
49. "Air Malta to start summer flights to Kiev". Times of Malta.
50. "Air Malta's new Airbus A320neo joins the airline's fleet". Malta Independent.
51. "Air Malta to start services to Casablanca, Venice and St Petersburg next Summer". www.airmalta.com.
52. "Air Malta to start services to Casablanca, Venice and St Petersburg next summer". www.independent.com.mt.
53. "Air Malta to start services to Lisbon in 2018". www.livenewsmalta.com.
54. "Air Malta to start services to Casablanca, Venice and St Petersburg next Summer". www.airmalta.com.
55. ""Air Malta can help passengers connect between Europe and North Africa" – Konrad Mizzi". www.maltachamber.org.mt.
56. Ltd, Allied Newspapers. "Ryanair to introduce 12 new Malta routes next summer".
57. "WATCH: Tourism Minister Explains Why Air Malta Sold Its Slots to New Government Company". www.lovinmalta.com.
58. "New Government company established to handle Airmalta's landing slots in European airports". www.tvm.com.mt.
59. "Beach operators appear to have learnt their lesson – TVM News".
60. "Town managers will be appointed to oversee tourist hot-spots – The Malta Independent". www.independent.com.mt.
61. Ltd, Allied Newspapers. "Easyjet to add weekly flight on Manchester – Malta route".
62. "Malta Air makes pilots, cabin crew redundant". Times of Malta. Retrieved 3 August 2020.
63. Aries, Quentin; Paravicini, Giulia (4 April 2016). "5 ways the Panama Papers swept up EU figures". Politico. Retrieved 23 April 2016.
64. Xuereb, Matthew (28 February 2016). "Konrad Mizzi has no regrets over acquisition of company in Panama; PM's chief also has Panama company, say reports". Times of Malta. Retrieved 23 April 2016.
65. "Panama Papers – The Power Players". The Panama Papers. The International Consortium of Investigative Journalists. Retrieved 23 April 2016.
66. Grech, Helena (3 March 2016). "PN labels Konrad Mizzi, Keith Schembri scandal as 'biggest in Maltese political history'". The Malta Independent. Retrieved 23 April 2016.
67. "Panama Papers: Government wins confidence vote but Muscat says doing nothing is not an option". Times of Malta. 18 April 2016. Retrieved 23 April 2016.
68. "Konrad Mizzi: 'I will not resign'". MaltaToday.com.mt. Retrieved 2 May 2016.
69. "Konrad Mizzi to declare New Zealand family trust". MaltaToday.com.mt. Retrieved 28 April 2017.
70. "Minister Konrad Mizzi's Panama Company Worth €92". TVM. 2 March 2016. Retrieved 23 April 2016.
71. "'Judge me by audit facts, not through trial by media' – Konrad Mizzi".
72. "Konrad Mizzi to close down Panama company after tax audit, retain New Zealand trust". Times of Malta. 29 February 2016. Retrieved 23 April 2016.
73. "Opposition describes situation as 'surreal' as Konrad Mizzi makes statement in parliament, about cemeteries". Times of Malta. 7 March 2016. Retrieved 23 April 2016.

External links

• Office of the Prime Minister Website
• Ministry for Tourism Website