The sentences given to the first seven men who admitted to defrauding the VAT Department were as bad as a "mosquito bite", according to outspoken business lobbyist Vince Farrugia.

"We crucify the small honest businessman who slips up for God knows what reason but we let clearly corrupt criminals go home," he said.

The men avoided jail this week and were instead handed down suspended sentences, the longest being a two-year jail term suspended for four years, and fines, the highest amounting to €700. They were also given a general interdiction, meaning they will no longer be able to vote, buy or sell property, hold public office or sign official documents such as contracts.

The group, including a VAT Department employee, a middleman and five businessmen, were the first seven of 32 individuals facing charges of bribery, fraud and corruption, among other things. They were allegedly part of a scam in which businessmen who owed money to the department could pay off middlemen and government employees to reduce the amounts they owed.

Mr Farrugia, the director general of the Chamber of Small and Medium Sized Enterprises - GRTU, said their crimes were "completely unacceptable" and that it was also unacceptable for them to go home scot-free.

"If you're not a businessman and they give you the interdiction, it's like you got bitten by a mosquito and the same if you get a suspended sentence," he said. "The government should jump on these people," he added.

"How come they got such a light sentence? Is there someone behind them being hidden? And, secondly, if this is the message we're giving to people, aren't we inviting them to get into some other form of corruption," he asked.

Mr Farrugia said those who evaded tax caused unfair competition for serious businessmen and in this case this was exacerbated because the corruption was coordinated by people within the VAT Department.

This case had damaged the reputation of the VAT Department, especially among businessmen, who should have absolute confidence in such departments.

He said he had often been asked to take up the cases of businessmen who later said they sorted out their problems "in their own way". "We don't want corruption and we need to fight it as much as possible. If the laws are not good they need to change," he demanded.

"The courts have to work within the powers given to them by law. If the laws need to change let's change them. We need to be as hard as possible."

On the other hand, the president of the Malta Employers' Association, Pierre Fava said the interdiction given to the seven men will be a "big blow" to them. "On its own that is already very big. But I feel it is premature to discuss the merits of the different cases while this is still in court," he said when contacted.

He added that the MEA had complete confidence in the judicial system and truly believed that the men were treated fairly and squarely.

However, such unique cases could reflect a need for the law to be updated in order to empower the judiciary further.

Meanwhile, Attorney General Silvio Camilleri said he had yet to be in a position to decide whether to appeal the sentences individually or not because he had not yet been given the court records. (PBS yesterday reported that appeals will be filed)

"It's only after having examined the records that it will be possible for my office to decide whether the sentences delivered fit the offences of which the persons in question have been convicted," Dr Camilleri said.

Several people also gave their views on the cases heard so far. See video above.

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