The party financing legislation, announced two days ago, is another important milestone towards good governance. The current laissez-faire situation must end and we are determined to establish a system that is both fair and transparent. While the law establishes a higher capping on electoral spending, candidates are now held accountable. Breaking the law will now jeopardise one’s political prospects.
MPs risk their seat in the House if the Constitutional Court declares them guilty of overspending or of making false declarations.
We are aware that corruption, whether perceived or real, will shackle national aspirations on all fronts and so the proposed Bill will become law before Parliament’s summer recess.
The Bill will now standardise the registration of political parties and ensure accountability in accounts records. It will also regulate donations to parties and candidates’ expenditure during national, local and European electoral campaigns.
Under previous administrations plenty of lip-service was paid and yet all initiatives were mere eyewash because they were either blocked or shelved by the power holders.
It was indeed very shocking for our political class to learn from a Eurobarometer survey published two years ago that eight out of 10 of the Maltese respondents felt that corruption had become unavoidable and a fact of life.
The Maltese appeared to mistrust politicians as they questioned the moral legitimacy of most important State institutions. This coincided with Greco’s (Group of States against Corruption) criticism of Malta and falling rankings on the Corruption Perception Index. This was a very bleak scenario indeed for our representative democracy.
The PL quickly stepped in to pledge changes aimed at restoring trust in the political system. As soon as it was elected in March 2013, it quickly started to deliver on its promises.
The Bill that regulates party financing is the latest in a string of initiatives, which I had the honour to lead.
In the very first weeks of this administration we approved two crucial laws: one removed time-barring in the case of political bribery; the second was the Whistleblower’s Act which protects citizens who decide to report illegal practices. The importance of those two Bills cannot be underestimated.
They were not a last-minute exercise in political expediency but a priority for the new government of Joseph Muscat.
The new Bill followed an extensive consultation process on a White Paper published in February and a lot of hard work by the Ministry of Justice. Many people gave their valuable input and the Justice Ministry would like to commend the sterling work of former MP Franco Debono, who had personally tabled a Private Member’s Bill during the previous legislature. We also appreciate the important role of the Office of the Attorney General.
Politics is about delivering on promises in an honest and genuine manner
While the Bill acknowledges the fundamental Right of Association it defines the term “political party”. Up to now an individual could claim he/ she was a party. The new law holds that a party must be formed by a group of people.
A sole individual may still contest elections as a candidate but cannot claim to be a party. The Electoral Commission may refuse to register a party if its aims and statute are ambiguous or contrary to the law, even though there will be a right of appeal against such a decision.
The primary aim of the Bill is to ensure accountability in party finances and the Commission will make financial records available for public scrutiny.
Parties will need to submit their records of income and expenditure. Whenever procedures are not followed, a party may face a fine up to €10,000.
An issue that has always stirred ample debates among stakeholders is the regulation of donations. While donations must now be listed in the party’s accounts, the proposed law states that parties should not accept donations which are given with the intention of claiming some advantage or benefit in the future. Donations shall not exceed €40,000 in any one year.
Donors can remain anonymous when they contribute less than €50 per year.
The names of donors of small amounts that range between €51 and €500 per year will be merely recorded in internal party books; this data will remain confidential and will not be passed on to the Electoral Commission or third parties.
However, confidentiality will not be applicable whenever the Commission suspects that the party or donor are abusing of the provisions of the Law.
All donations between €501 and €7,000 must be listed together with the donor’s details, whichwill be examined by the Commission. Donations between €7,000 and €40,000 will be published.
The final part of the Bill seeks to regulate the amount of money each electoral candidate is allowed to spend during an electoral campaign. Here we established realistic targets.
Candidates contesting general elections cannot spend more than €20,000 per district. In the case of the European Parliament elections, expenditure should not exceed €50,000.
In local elections, the amount permitted is tied to the size of the town or village, with a capping of €5,000 for the biggest localities. MPs risk their parliamentary seat if they make false statements and a whole new procedure regulating the matter is being prescribed in the Bill itself.
Politics is about delivering on promises in an honest and genuine manner. This Bill is further evidence of the government’s commitment to foster clean and transparent politics. As we implement our electoral manifesto, this party financing legislation will mark a milestone in our political history.
Owen Bonnici is Minister for justice, Local Councils and Culture.