Diplomat’s €2M ‘Suspect Payments’ Spark Tax Talks
Cash Controversy: Diplomat’s €2M ‘Suspect Payments’ Spark Tax Talks
In the heart of Malta’s bustling capital, Valletta, a diplomatic row is brewing. The country’s foreign affairs ministry is in hot water over ‘suspect payments’ totalling €2 million, linked to a diplomat. The payments, made to a company owned by the diplomat’s spouse, have raised eyebrows and sparked a debate about transparency and accountability.
From Valletta to Brussels: The Money Trail
The payments, made between 2017 and 2019, were flagged by the European Anti-Fraud Office (OLAF) during an investigation into Maltese funds. The money flowed from Maltese government ministries to a Belgian company, Eurocoast, owned by the diplomat’s spouse. The diplomat, a high-ranking official at Malta’s embassy in Brussels, has not been named.
Eurocoast, according to Belgian company registry data, is involved in ‘consulting services’. However, the nature of these services and why they were paid for by Maltese ministries remain unclear. The payments, spread across several ministries, include €500,000 from the foreign affairs ministry itself.
Tax Talks: The Diplomat’s Demands
The diplomat, at the centre of this storm, has demanded a tax deal with the Maltese government. According to sources close to the matter, the diplomat wants Malta to guarantee that they won’t be taxed on the €2 million payments, arguing that they were made in their official capacity.
This demand has been met with resistance from the government. Finance Minister Clyde Caruana has stated that no such deal has been agreed upon, and that the matter is being investigated. The Opposition, meanwhile, has called for a full inquiry, accusing the government of lacking transparency.
Malta, a small island nation, has long been under scrutiny for its tax regime. The ‘Cash for Passport’ scheme, which offered EU citizenship in exchange for a €650,000 donation, was scrapped last year amid similar allegations of lack of transparency and potential money laundering.
As the diplomatic row deepens, the public is left wondering: what services did Eurocoast provide to warrant €2 million in payments? And will the diplomat get their tax deal? . But one thing is certain: the streets of Valletta are abuzz with whispers of this cash controversy, and the government will need to provide some answers soon.
