Justice Minister Owen Bonnici this morning hailed the party financing Bill, which was yesterday approved at committee stage in parliament following a lengthy legislative process which started last year with the publication of a white paper.

He said that although anonymous donations will be allowed, these will be limited to €50 and can only be made during party activities such as telethons. The party would still have to keep record of the donation, but it would be kept confidential.

However, donations above €7,000 have to be made public in the party’s annual financial statement.

Donations from the same source will be capped at €25,000 a year, and each candidate will be allowed to spend €20,000 on each district being contested. False declarations, can lead to the unseating of an MP.

However, a PN proposal to limit party spending in election campaigns to €2 million, was rejected.

Addressing a news conference outside parliament, Dr Bonnici this morning reiterated his view that parties should not be “penalised” for raising funds beyond a certain level.

The Justice Minister said this was another milestone following the enactment of the Whistleblower Act and the lifting of time-barring on corruption-related cases.

He noted that for the first time ever political parties will be under scrutiny and there will be safeguards to ensure they will not be “in the pocket of wealthy businessmen”.  He added that this law was long overdue, saying that successive PN administrations had postponed its introduction to the point that Malta was being chided by the EU council watchdog against corruption (Greco).

Law Commissioner Franco Debono who had drafted the Bill, remarked that this was an important day for Malta’s constitutional reform.

The law which only needs to clear the last parliamentary hurdle (third reading stage) is expected to come into force next January.