Accusations of corruption are treated with the utmost importance, the government said yesterday, in the wake of a report showing that the perception of corruption among the Maltese was on the increase.

The Labour Party argued that Prime Minister Lawrence Gonzi was "simply not coming down hard enough on corruption", adding that his "blinkered approach" gave the impression that corruption was permissible. The annual report by Transparency International showed that Malta slipped nine places among 180 countries when it came to perception of corruption. Malta was ranked in the 45th place, down from last year's 36.

According to the PL, the government's postponement of a parliamentary debate on the tender for an extension of the Delimara power station, which was mired in controversy, further reinforced the perception of growing corruption.

"The lack of a proper explanation on how the country's coffers were set back by at least €40 million on two ship conversion jobs at Malta Shipyards was another scandal," a Labour spokesman said. He said the perception of corruption was also reinforced by Dr Gonzi's declaration of trust in Finance Minister Tonio Fenech after it was revealed that the minister flew on a private jet with two prominent businessmen to watch an Arsenal match.

"The fact that we have slipped further every year in the Corruption Perceptions Index since Lawrence Gonzi became Prime Minister five years ago is worrying to the Labour Party both in terms of its economic effect and, especially, in terms of what corruption costs taxpayers in Malta and Gozo," the PL spokesman said.

Asked whether the government was worried about the rise in perceived corruption, a spokesman stressed that the index dealt with perceptions and was not intended to measure the country's progress over time. The spokesman said the government was addressing "real, as opposed to perceived, corruption" by proposing the setting up of a Parliamentary Select Committee to discuss and propose initiatives to strengthen the Permanent Commission Against Corruption and the Ombudsman's Office.

The committee was set up last year. He said the government has also addressed corruption in the Budget by proposing the amalgamation of the Inland Revenue, the VAT and the Customs and Excise departments to reinforce the fight against tax evasion.

"Notwithstanding all this, the opposition has failed to understand, time and again, the serious nature of corruption and related accusations. Or, worse still, continues to make allegations in the hope that some would stick to the perception of the public," the government spokesman added.

Labour leader Joseph Muscat has long used corruption as his battle cry and last month he took people to the street to demonstrate against it, saying that corruption was a tax.

The PL reiterated its stand yesterday, saying that "hard-working families and businesses feel, now more than ever, that corruption is just another tax imposed on them".

"Over the past few months there was not only a perception of or reports on corruption but also proven cases of corruption that have been exposed, such as the VAT Department scandal that caused a national outcry," the PL spokesman said referring to the 32 people facing various charges, including bribery, fraud and money laundering.

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