Hardly a few weeks seem to go by without another international body highlighting institutional shortcomings in Malta. This is an overview of the latest reports and the government reaction to them.

‘Total impunity’ flagged by Council of Europe

The Council of Europe’s anti-corruption monitor highlighted the lack of action against top officials facing allegations of wrongdoing. This, the Group of States Against Corruption (Greco) warned, led to the feeling that senior officials benefited from total impunity for their actions.

The watchdog also raised alarms of a culture of secrecy in many institutions, where reports, recommendations and conclusions are not published. Most, if not all, files against top officials in the executive and other related officials were still stuck in early stages.

It also warned the country’s criminal justice system risked paralysis, unless changes in responsibilities took place.

Prime Minister Joseph Muscat has said the government will be looking at the report objectively. He said the report was partly a direct result of the “irresponsible way” the Opposition portrayed Malta internationally.

He also said the report was based on open sources like media reports, which were, rightly or wrongly, taken as facts.

Prime Minister has ‘too many powers’

The Council of Europe’s Venice Commission criticised the extent of power in the hands of the Prime Minister, saying it far outstripped those of other important bodies. It also warned that crucial checks and balances were missing. Civil society and the independent media were also far too weak, the report said.

The government said it would implement the report’s recommendations. Justice Minister Owen Bonnici said the functions of Prosecutor General will be separated from those of Attorney General, among other reforms to be implemented as recommended by the Venice Commission.

Civil society and the independent media were far too weak

He said the government hoped to see legislation through by the summer. However, the person taking on the Prosecutor’s role will be handpicked by the government, Dr Bonnici eventually admitted to the Times of Malta.

Press Freedom in Malta is in a ‘problematic’ state

Press freedom continued to deteriorate, with Malta dropping 12 places in an index published last week.

Malta had already dropped 18 places in the 2018 World Press Freedom Index last year. This year, it fell from 65th to 77th place. The drop came after a noticeable widespread technique of threatening to exhaust journalists’ financial resources, Reporters Without Borders said in a statement. It also expressed concerns on the apparent lack of progress in the investigation of Daphne Caruana Galizia’s murder.

The government took issue with the ranking, saying it was committed to ensure journalists were free to work without outside forces hindering them. It also said it supported measures taken at a European level which helped to safeguard freedom of expression. However, it did not comment on whether it will take new measures, saying only that it was committed to democracy.

‘Tax paradise’

Malta has tax regulations that are very attractive to the rich and famous, according to a study by the European Greens.

The study took issue with schemes allowing people residing, but not domiciled in the country for tax purposes, to avoid paying tax on foreign-derived income.

Those who keep their investment neatly separated in the British Virgin Islands while living comfortably in Malta can make huge profits without paying tax in the country or anywhere else, the report noted.

Both the government and the Opposition have repeatedly rejected criticism of Malta’s taxation system. Both parties believe taxation should remain the competence of EU Member States.

Poor grade on action over money laundering

An initial Moneyval evaluation gave a poor rating to Malta’s anti-money laundering enforement.

The Sunday Times of Malta reported that a draft report by Moneyval, which is another of the Council of Europe’s bodies, had “failed” Malta when it evaluated the country’s actions and preparedness to combat money laundering.

The government, however, insisted the evaluation was far from complete, noting it would only be ready when Moneyval publishes the full report in July.

Read: Malta’s democracy under fresh scrutiny

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