The Malta Scandal, Energy Deals and Azerbaijan

One aspect to the scandal surrounding the car-bombing death of journalist Daphne Galizia that has not been focused on, at least not so far, is the connection to Azerbaijan and the politics of the Caucasus.

Galizia's revelations regarding The Panama Papers shone light on the corrupt politics of Malta and the shady dealings of businessman Yorgen Fenech. However Fenech is a key player in the Electrogas consortium which is tied to Siemens and to SOCAR the Azeri state oil company.

When I realised this, the story was suddenly transformed. This isn't just about Maltese politics and corruption in Valletta. This is quickly turning into an international story or at least should be. It will be interesting to watch the story unfold and see just how the mainstream media is willing to follow through.... or not.

If the story is to be effectively shut down, the allegations of corruption will stop with Fenech. If Azerbaijan comes up, it can be cast in a corrupt light because it's in the Caucasus and the West naturally views everything oriental as suspect. And yet with Fenech's connections to Siemens, in other words 'big German money interests' and the geopolitical questions surrounding Azeri and Caspian Sea oil... the story could get rather interesting. These connections could be coincidental, but I doubt it.

Assuming Western media won't try to connect Galizia's death to Putin and the FSB... I'm only half-kidding... the story (I think) has probably generated some angst in Munich, Frankfurt, Brussels and maybe even in Washington and New York. I believe the surface has only been scratched and one hopes that more will be revealed in time.

There are millions of unaccounted for dollars that Galizia was attempting to chase down. Were these bribes, just indicators of a corrupt business deal? It could be. There's plenty of that taking place on a daily basis but given the larger scope of the business arrangement... the nexus of the German and Turkic worlds and the politics of the Caucasus... I cannot help but wonder if there isn't something more to the story.

This would also explain why Fenech and others grew desperate enough to silence Daphne Galizia. Fenech could simply re-locate if it was a local scandal but Galizia was on to a larger story and more importantly had achieved a level of fame, especially with her work on The Panama Papers. They had to know that killing her was going to generate a lot of press and a big investigation. It was a calculated risk. It either points to some real bumblers who are out of their league, or it points to the fact that she was just a step or two away from a much larger revelation and an international scandal.

Peel back a layer and you'll find that given Malta's role as a financial services hub there's the potential for all kinds of dirty deeds. Additionally there are some other energy politics involved. China has been pushing into the European energy sector and Malta was involved in this, both on the negotiation side and in production. This would certainly anger some of the powers that be and this 'takedown' of the Muscat government may or may not be related to some of these larger questions.