The editorial of this newspaper last Tuesday discussed objectively Skema Ċedoli 2016 and weighed the arguments put forward by the Nationalist Party in support of the scheme against the negativity spewing out of Labour.
This is a scheme which is part of a long-term financial restructuring plan, thoroughly thought out, examined and assessed by a number of professional experts because, to Labour’s annoyance, yes, we have become very organised and structured.
Those interested have the opportunity to voluntarily lend the party €10,000 for 10 years at a commercial rate of interest of four per cent, paid every year (not as erroneously stated in the editorial, compound interest at the end of the 10-year period).
A borrower who is contractually bound to repay a loan within 10 years and to pay interest at four per cent annually cannot possibly be considered as the recipient of a ‘donation’. The law on party financing is intended to keep a close eye on persons who donate gratuitously to parties and endeavours to ensure that such gratuitous donations do not translate into a handsome payback when the party is in government. Thus, the scheme is most certainly not against the law, is in full respect of the law and is, in fact, a continuation of the spirit of the law attempting to eliminate political obligations with the sum total of the party’s obligations being strictly commercial: the repayment of the loan and the annual payment of four per cent interest.
In reality, Labour’s assault on the scheme is down to the fact that they measure everyone by their own yardstick.
The most normal of people are desirous of the return of normality and good governance
Labour said it was a Ponzi scheme. Labour too had ‘ċedoli’ and we recently saw copies of these scraps of paper openly stating “Din iċ-ċedola tirrappreżenta self bla imgħax” – no contractual terms on repayment or interest and we also know that people’s arms were literally twisted in order to extend such ‘loans’. Now that is what I call a Ponzi scheme.
Labour said the PN would be attracting dubious big business tycoons and money launderers. The dubious big business tycoons by the admission of none other than Labour’s former deputy leader, now Parliament Speaker Anġlu Farrugia, were not banging the doors of the Nationalist Party but banging on the fourth floor of Labour’s headquarters prior to the general election.
Those who have come to support the PN in this venture do not fit that profile at all as they do not fit the profile of money launderers. But, again, even here Labour seem to know what they are talking about, after all it was the Labour Party’s former treasurer who was Muammar Gaddafi’s confidant and closely associated with his millions.
Labour said this was an attempt to get round the party financing law. I have explained above why it is not but, if anything, it was Labour that did that by giving themselves a present of €10 million in the form of Australia Hall and extensive tracts of land at Pembroke and only after doing so did they pass the law.
Furthermore, as everyone knows, the civilised way of party funding is agreed financing to parties by the State as suggested by the PN, eliminating donations, loans, the lot. But Labour would not have that; they did not agree to State financing – after first giving themselves €10 million.
Labour said the PN is penniless and, therefore, can never be in a position to satisfy its obligations. The PN’s forefathers had the wisdom to invest in well-positioned immovable property and, consequently, all obligations are very safely secured. Quite rich coming from a party that requisitioned several private homes from private owners and made them their own and who, to this day, remain uncompensated.
Labour said this is a “secret” scheme. How can it be “secret” if the payments are made by cheques drawn on Maltese banks and when the interest is paid by cheque? If anything, this is a transparent commercial relationship between a lender and a borrower and, as in every commercial relationship, the lender has the right for his commercial affairs to remain confidential as per normal. Quite apart from the fact that most lenders are not particularly impressed by Labour’s vindictive record to date.
Finally, a word on timing.
According to our financial restructuring plan, which started three years ago, Skema Ċedoli 2016 was scheduled for the first quarter of 2016 after having satisfactorily managed the financial commitments with the major financial institutions. We are bang on schedule and bang on schedule we intend to remain.
It happened to coincide with a time when Labour is scraping the bottom of the bad governance barrel reminiscent of dictatorial Third World countries. This has angered the most normal of people who are desirous of the return of normality and good governance, which they know Simon Busuttil can deliver.
So, frankly, the timing could not have been better.
Ann Fenech is president of the Nationalist Party’s executive committee.