There should be no doubt in anybody’s mind that the political leaders are genuinely worried about the damage being done to the country’s financial services industry.
On Saturday, the Prime Minister, flanked by the Finance Minister, called for a united front to safeguard Malta’s fiscal system.
The leader of the Opposition insisted that no offshore companies were registered in Malta and that the island was not a tax haven.
This followed the publication of the so-called ‘Malta Files’ by a consortium of European investigative journalists, claiming the island is a “pirate base” for tax avoidance within the European Union.
It is not the first time Malta’s tax regime has come under fire and, often, one would easily spot a certain dose of envy. Malta did well in defending its position and usually succeeded but now a different scenario prevails.
Joseph Muscat and Edward Scicluna have a lot to answer for because, as the string of allegations persisted they kept looking the other way. When things got out of hand and Dr Muscat realised he lost control, he quickly called a snap election. That attracted more attention to what is going on in this tiny island.
Fingers must also be pointed at the Prime Minister’s closest aide, Keith Schembri, and the Minister Within the Office of the Prime Minister, Konrad Mizzi, who brought Malta in disrepute by deciding to set up secret companies in Panama just days after the 2013 election.
As our sister newspaper, The Sunday Times of Malta, rightly noted in its editorial, Dr Muscat astounded many by defending Mr Schembri in the face of mounting evidence of financial crime. “The two fiddle as Malta burns, seemingly untroubled as they shame its name abroad,” it said.
The Prime Minister may argue there is no solid evidence but only unsubstantiated allegations. Justice should, of course, be allowed to take its course but, although there may not yet be a smoking gun, it is a fact of life that there is usually no smoke without fire.
Labour is proposing a constitutional amendment to ensure automatic review of decisions made by politicians who breach specific duties and fail to honour their responsibilities. Though one needs to know the details, it could be a good move but it is too little and too late.
Dr Muscat’s conduct since the Panama Papers scandal broke tells a different story. He should now realise he has been had by those he said the country needed. Evidently, it is they who needed the country and the position they occupied in government to attain their ultimate sinister aims.
Dr Muscat has lately appeared so keen in having the relevant authorities probe allegations – he wanted a magistrate to probe the Egrant ownership claims and, over the weekend, he let it be known that the Auditor General would be asked to look into files connected to the BWSC plant in Delimara.
Why does he not ask the Police Commissioner why he felt he should ignore recommendations made by the Financial Intelligence Analysis Unit to further investigate suspicion of money laundering?
Thus, before Dr Muscat appeals for a united front to defend the country’s fiscal system he should lead by example. Otherwise, he will prove the Nationalist Party correct that the fish rots from the head.