It is unclear how a proposed law to regulate political party financing will tackle the relationship between parties and their commercial companies.

The White Paper presented by Justice Parliamentary Secretary Owen Bonnici on Monday speaks of party donations and expenditure but makes no mention of their TV and radio stations, mobile phone services, newspapers and even a travel agency.

While political donations will be capped, nothing is said of payments that surpass the capping made by a company for advertising purchased on its relative television station.

The White Paper does not mention loans that parties may acquire from time to time

Any such transaction is supposed to be of a commercial nature but it could be construed as a form of indirect financing, as the party is the station’s sole shareholder.

The White Paper tasks the Electoral Commission with the power to investigate how political parties acquire and dispose of funds and puts the onus on the treasurer to ensure accounts contain a list of assets and debts held by their party.

It also says donations need not be monetary but also sponsorships or material goods.

But there is little to suggest that these clauses would cover commercial transactions, such as TV advertising, between ‘donors’ and companies that belong to the party. This argument was also raised yesterday by Alternattiva Demokratika in its initial reaction to the White Paper.

While welcoming the proposed Bill as a step forward, AD deputy chairman Carmel Cacopardo said the details needed to be “drastically overhauled”.

“The White Paper does not mention loans that parties may acquire from time to time and neither does it refer to the commercial enterprises owned by the same political parties,” he said.

It is a pertinent argument, especially in set-ups where the lines between party politics and party enterprise are completely blurred.

But AD’s criticism of the proposed Bill also concerns the donation thresholds, which it deems to be too high, and the suggested expenditure thresholds.

AD chairman Arnold Cassola noted that while the proposed Bill made provisions for individual candidate spending, it shied away from capping a party’s expenditure during an electoral campaign.

The Greens will be taking part in the consultation process that will lead to a Bill being put before Parliament between June and July.

ksansone@timesofmalta.com