The Electoral Commission cannot be the watchdog that ensures political parties adhere to a law on how they are financed, according to Alternattiva Demokratika.

AD deputy chairman Carmel Cacopardo said the Electoral Commission was under the clutches of the main parties and it could not be expected to serve as the authority that verifies party finances.

Mr Cacopardo said the regulating authority should be the Commissioner for Standards, a new post just approved in Parliament. The Standards Commissioner will be appointed by a two-thirds majority in Parliament and is tasked to scrutinise the behaviour of politicians.

AD chairman Arnold Cassola said the party disagreed with the proposed limits for donations and the declaration of donors. He said the upper threshold should be €40,000, above which it would be illegal to donate money to a party.

All donations up to €4,000 should remain confidential but all other donations should be reported.

Prof. Cassola said the White Paper presented by the government made no reference to the commercial wings of the parties and donations made in the form of loans.

He questioned what Labour deputy leader Toni Abela had in mind when he said party expenditure during an electoral campaign should not be regulated.

The party is also asking for parties with a limited turnover to be exempt from auditing obligations and if the regulator insists then he should provide the service.

"A political party with a turnover of €15,000 a year cannot be compared with parties that have a turnover running into millions," Mr Cacopardo said.

The White Paper puts limits on candidate expenditure but not on party expenditure.

AD will be submitting its detailed proposals to the Justice Parliamentary Secretary for consideration.