Nigel Vella

Discussing good governance while living a political earthquake, as The Sunday Times of Malta rightly put it, is indeed relevant. The shocking disclosure of Simon Busuttil’s alleged insistence for illegal party financing has opened wide the debate of accountability and transparency in politics. We must approach such discussion in a mature, responsible manner.

Let’s put things into perspective. The mentioned perception index portrayed a mere one-point difference year on year. From 56 points in 2015, to 55 points in 2016. More countries were added to the list over these past 12 months and consequently, following the improvement registered in previous years of this legislature, Malta now appears in 47th place compared to the 37th position previously held. Still, the point difference is regrettable and we need to fix it.

These have been four years of firsts against abuse. This government, so much convinced of its integrity, swiftly removed time-barring on political corruption. We have absolutely no difficulty in being held responsible till the end of our lives for decisions we make today. I genuinely wonder why previous administrations never had the courage to deliver such change.

This is the first government to put a legal framework to party financing, to introduce the Whistleblower Act which protects citizens who reveal political corruption. We have worked on a bill stressing standards in public life, we are holding politicians to account on their parliamentary attendance. This is also the first government to publish all major public contracts, to provide details of each budget implementation. The Commission against Corruption, in this legislature, is finally functioning following years of lethargic passivity.

These have been four years of firsts against abuse

Recent surveys have shown that delivering clean-politics measures in the first four years have resulted in people trusting Joseph Muscat as the most credible to fight political corruption. Other than the Perception Index, indications are also very clear. Through one of the fastest growing economies in Europe, Malta has achieved the highest increase in job creation among all EU countries for four consecutive years. There is no doubt that investment goes to countries that uphold the rule of law and enjoy political stability.

The Opposition has claimed corruption on a day-to-day basis; a four-year intensive campaign, promoted by the extreme faction within the Nationalist Party, aiming to tarnish every initiative positive as it may be announced by the government. Busuttil professed corruption in the energy deals, which have been approved by the European Commission. The Opposition leader affirmed corruption in the health investment project, which has been endorsed by his own widely respected former MP Albert Fenech who made it clear he will never be part of anything which lacks good governance.

Perception of abuse is, of course, also negatively influenced through the charges of corruption in court against the former Gozo Minister’s husband who is accused of spending people’s taxes for votes; through the investigation the Nationalist Party deputy leader is facing as a director on a financial set-up accused of money laundering from drugs proceeds; through the criminal investigation of a company of one of the Opposition’s main politicians about fraud in a Swedish pension fund; through the Auditor General’s damning report on how a former PN minister favoured a lands deal to its main benefactor.

Then there’s paygate. Away from all the transparency preachings, Busuttil has been caught red-handed earning for the Nationalist Party at least €70,000 per year, with sums from this one businessman said to exceed the half million mark. The Opposition leader boasts of not being in anyone’s pockets, but it was he who personally insisted for the wage financing of his two top officials at Dar Ċentrali. He gives the impression that donations were in exchange of commerical services, but he fails to publish the invoices which can prove so. He accuses the investor of dirty money, but now says he will keep it.

It is all evident that Busuttil has broken the party financing law – that measure which ensures a genuine fight against corruption – which he himself had never delivered when in a position of power within the previous government. Time will simply tell.

Nigel Vella, Labour Party director of communications.

Errol Cutajar

When it comes to analysing and discussing an issue, I always believe that you can never make an impartial analysis unless you go directly to the source. To that effect, I prefer to refer directly to the report entitled ‘Malta: Overview of Corruption and Anti-Corruption’ issued by Transparency International on February 28.

Whatever the politicians, from both sides here in Malta, want us to believe, the report flatly states that despite Malta’s strategic geo-political location, with its stable economy and skilled workforce that has established itself as a successful financial centre, “patronage and clientelism in the form of corruption and clientelism persist”.

There are no provisions for the direct or indirect public funding of parties or candidates

It goes on to say that: “Despite having substantial legal mechanisms in place, Malta has been rocked by a number of corruption scandals in the recent years, which have ‘tarnished’ its incumbent presidency of the Council of Europe.” The report then identifies the following as the main reasons for all this – procurement irregularities, unresolved conflict of interest among serving government ministers, and the revolving door between the island State’s close-knit political and business class. On top of all “Malta is also the only country in the European Union to have an incumbent minister named in the Panama Papers revelations in 2016”. These issues have been triggered by the current wave of populism.

In more detail, the report says Prime Minister Joseph Muscat reacted promptly, when the 2015 edition of the Corruption Perceptions Index (CPI) showed a gradual improvement over the previous year, claiming that this was proof that the government was in fact fighting corruption. This was short-lived due to the fact that for the following year, the 2016 edition of the CPI recorded that the perception of corruption in Malta rose in 2016 in the wake of a series of scandals, and “the country has fallen to an all-time low of the 47th position”.  The only EU states that fare worse than Malta are Italy, Bulgaria, Greece, Romania, Hungary and Slovakia, if that is of any consolation to readers.

In the list of political corruption, the report mentions the following: in 2015, then Labour deputy leader Toni Abela, continued operating his private legal practice and was awarded nearly €100,000 for legal services to the Transport Ministry, the Oil Exploration Department, and the Social Solidarity Ministry; Chris Cardona, the Economy Minister, hired his business partner Mario Azzopardi as his chief of staff; Konrad Mizzi had the dubious distinction of featuring prominently in a number of scandals, and so many others. The report also highlights other forms of corruption, including in sports.

Reference is also made to our political funding laws, enacted in 2015 (Financing of Political Parties Act), in conjunction with the Malta Foreign Interference Act 1982. It states that, even though our laws state that donations from foreign interests and in some cases from corporations are prohibited, while establishing limits on the amount donors may contribute, there are no provisions for the direct or indirect public funding of parties or candidates.

In the past few days, Opposition leader Simon Busuttil, set up a commission headed by Judge Giovanni Bonello, to act independently of the Nationalist Party, with the aim of looking into the system that finances political parties, and to propose changes, with recommendations to be included in the PN manifesto.

A drop in the Corruption Perception Index of 10 places does not reflect positively on our country’s perception by others, falling short of making Malta, the best in Europe, as promised. Hopefully, the days of populism are counted.

Errol Cutajar, PN electoral candidate on the 2nd and 3rd districts.

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