The government is to introduce a corporate governance framework for public enterprises and an updated code of ethics for the members of the boards of public bodies, Prime Minster Lawrence Gonzi told senior civil servants this morning.

He said the government also intends to intensify its fight against fraud and irregularities through various initiatives.

Dr Gonzi was speaking at a seminar on financial controls in the public sector.

He thanked the civil servants for their work in Malta's successful efforts to get public finances on track ahead of euro adoption, and said the next target now was a balanced budget by 2010.

In a global environment of financial turmoil and rising oil and cereal prices Malta also to raise its productivity as a means of retaining its competitiveness, Dr Gonzi said. The government's strategy included an improvement of efficiency, accountability and transparency in the public sector.

He said financial control within the public sector rested on three pillars - management accountability, which was the responsibility of the senior civil servants, internal audit and harmonisation of financial controls in the public sector, which roles rested on the Internal Audit and Financial Investigations Division.

Referring to effective management financial control, Dr Gonzi urged the senior civil servants to set the example since that would set the standard for better control throughout the sectors which they headed.