Reports by the International Monetary Fund were corroborating calls from the Opposition, independent media and civil society over the past months, that the regulatory framework needs to be strengthened.

PN Shadow Minister Mario de Marco said: “Over the past four years, Malta’s reputation was repeatedly put at risk as a result of actions taken by government Ministers and high officials and by the relevant authorities apparent inability to effectively deal with suspected cases of abuse.”

The party was referring to two reports published by the International Monetary Fund: the Staff Report issued under Article IV of the IMF Articles of Agreement and the report entitled “Malta, Selected Issues”.

The Staff report, called for a “robust implementation and effective enforcement of the Anti-Money Laundering framework”.

Over the past years, government capital expenditure to GDP ratio was the lowest on record

While acknowledging the progress made in fnancial services and the economy, the Opposition also noted that the IMF called on government to achieve a positive balance net of IIP proceeds.

“This call came ironically two days after the Prime Minister pledged to base Malta’s economic future on the IIP programme. The Opposition has over the past months highlighted the risk of government’s strategy to rely heavily on revenue proceeds from IIP. These proceeds allowed government to camouflage rapid increases in government’s recurrent expenditure. This expenditure was in part driven by reckless increases in the public sector headcount. Contrary to government’s assertions, the additional workers were not recruited in the crucial health and education sectors,” it said.

In the “Malta Selected Issues Report” the IMF called on government to increase its capital expenditure without putting pressure on public finances.

“Over the past years, government capital expenditure to GDP ratio was the lowest on record,” Dr de Marco wrote.

“The Nationalist Party calls on government to give serious consideration to the points put forward the IMF not least by ensuring that the State’s authorities truly operate independently from government, government’s recurrent expenditure is kept under control with the resultant savings invested in capital projects. The Opposition also calls on government to do take all necessary steps to start repairing the damage done to Malta’s reputation.”