Profitti għas-settur privat, riskji u kontijiet għall Gvern!

Nhar it-Tnejn li għadda l-Parlament iddiskuta s-sentenza mogħtija mill-Imħallef Francesco Depasquale fuq il-konċessjoni dwar tlett isptarijiet tal-Gvern lill-Vitals Global Healthcare liema konċessjoni eventwalment għaddiet għand Steward Health Care. Id-deċiżjoni li ngħatat hi kontra l-Prim Ministru bħala kap tal-Eżekuttiv, kif ukoll kontra l-Avukat Ġenerali, kumpaniji diversi mill-grupp kummerċjali ta’ Steward Health Care u xi korpi pubbliċi u r-rappresentanti tagħhom.

Din hi kawża li ppreżenta Adrian Delia meta kien għadu Kap tal-Opposizzjoni. Il-parti kbira tad-diskussjoni parlamentari dwar din is-sentenza iffukat fuq nuqqas ta’ governanza tajba, dwar tmexija ħażina u dwar frodi flimkien mal- korruzzjoni, assoċjati ma’ din il-konċessjoni sa mit-tnissil tagħha.

Dan kollu joħroġ ċar mis-sentenza tal-Qorti tal-ġimgħa l-oħra. Imma għal min kien attent, dan kien diġa jidher ċar fiż-żewġ rapporti dwar din il-konċessjoni tal-isptarijiet, rapporti li ħareġ l-Awditur Ġenerali f’Lulju 2020 u f’Diċembru 2021. Is-sentenza tal-Qorti qed issaħħaħ u tirrinforza l-konklużjonijiet li wasal għalihom l-Awditur Ġenerali.

Niftakru li f’Lulju 2020 l-Awditur Ġenerali kien ippubblika l-ewwel rapport tiegħu, rapport li hu mifrux fuq iktar minn 200 paġna u li kien jiffoka fuq il-proċess tal-offerti għall-konċessjoni dwar l-isptarijiet. Dan kien supplimentat b’addendum ta’ 20 paġna oħra. Iktar tard f’Diċembru 2021 l-Awditur Ġenerali kien ippubblika it-tieni rapport tiegħu b’467 paġna, li kien jiffoka fuq il-qafas kuntrattwali tal-konċessjoni u kif dan ġie mħaddem.

L-Awditur Ġenerali kien ikkonkluda fir-rapporti tiegħu li l-preparazzjoni li wettaq il-Gvern in konnessjoni mal-konċessjoni kienet waħda superfiċjali, u li meta ħareġ is-sejħa għall-offerti kien fil-fatt diġa ftiehem u fuq kollox lill-Kabinett bosta drabi kien iħallieh fil-għama. Anke l-Ministru tal-Finanzi kien imwarrab, qiesu kien qiegħed hemm għalxejn!

Punt interessati li isemmi l-Awditur Ġenerali hu li Vitals Global Healthcare ippreżentaw garanzija bankarja mill-Bank of India li kienet datata 13 ta’ Marzu 2015, ħmistax-il ġurnata qabel ma fil-fatt ħarġet is-sejħa għall-offerti. Dan sar għax il-ftehim kien diġa sar u s-sejħa li ħarġet għall-offerti kienet waħda finta! A bażi ta’ dan, l-Awditur Ġenerali kien tal-fehma li Vitals Global Healthcare kellhom ikunu skwalifikati milli jippartiċipaw fis-sejħa għall-offert għall-konċessjoni dwar l-isptarijiet.

Dan hu kollu importanti u separatament wassal għal konklużjonijiet li issa wasal għalihom ukoll l-Imħallef Depasquale fis-sentenza li qed nitkellmu dwarha. Ifisser li Gvern serju, kieku ried, seta jaġixxi. Kellu biżżejjed informazzjoni biex jibgħat lil Steward Health Care isaqqu. Imma b’mod ċar dan ma setax jagħmlu għax il-Gvern kien parti integrali mill-ħadma li saret.

Imma hemm affarijiet oħra, daqstant importanti, ta’ natura fundamentali u li huma presentment skartati mid-diskussjoni pubblika. Kemm jagħmel sens li qasam sensittiv bħas-saħħa ikollu parti sostanzjali minnu taħt kontroll kważi assolut tas-settur privat. Jagħmel sens il-Public-Private Partnership fil-qasam tas-saħħa?

Din hi mistoqsija li hi kompletament skartata fid-dibattitu pubbliku li sar u li għadu għaddej. Hi mistoqsija fundamentali li mit-tweġiba għaliha tista’ toħroġ il-fasla ta’ kif is-settur privat jista’ jikkontribwixxi u jipparteċipa mingħajr ma jikkontrolla: kif kulħadd jitħallas ta’ xogħolu imma li ħadd ma jitħalla jberbaq il-ġid tal-pajjiż.

L-esperjenza li għandna f’dan il-pajjiz dwar l-involviment tas-settur privat f’dawn it-tip ta’ proġetti hi waħda ta’ problemi kbar: problema ta’ deċiżjonijiet ħziena u ta’ abbuż ta’ poter, kif ukoll suspetti kbar ta’ frodi u korruzzjoni. Dan b’referenza kemm għal din il-konċessjoni tal-isptarijiet, il-progett tal-enerġija f’Delimara u anke fil-progett ta’ San Vinċenz f’Ħal-Luqa. F’kull kaz hemm rapporti voluminużi tal-Awditur Ġenerali li jispjegaw dettaljatatment it-taħwid li ġie iġġenerat mill-Gvern immexxi mill-Partit Laburista wara l-2013.

Huwa mudell ekonomiku fallut li jarmi l-assi pubbliċi. Mudell li intuża ukoll f’ċirkustanzi oħra bħall-bejgħ tal-art f’Pembroke bir-ribass biex ikun iffavoreġġat il-proġett spekulattiv tal-Grupp dB.  Il-profitti li jirriżultaw mill-ispekulazzjoni, sfortunatament għandhom prijorità fuq il-ġid komuni għal dan il-Gvern.

Hu ċar li jekk irridu l-involviment tas-settur privat fi proġetti pubbliċi, dan l-involviment għandu jkun regolat sewwa u din ir-regolamentazzjoni għandha tkun infurzat biex tkun assigurata governanza tajba mill-bidu nett, mill-ewwel ideat sat-twettieq ta’ proġetti ta’ din ix-xorta.  S’issa kollox qiegħed jitħalla jimxi għal riħu bil-konsegwenzi li qed naraw b’għajnejna u li qed insiru nafu bihom ftit ftit. Nuqqas ta’ regoli ċari li jkunu infurzati jwassal inevitabilment għal taħwid, għal frodi u għal korruzzjoni. Riżultat ta’ hekk ibati l-pajjiz kollu.

ippubblikat fuq Illum: 5 ta’ Marzu 2023

Private profits public risks

On Monday Parliament discussed the decision delivered in Court by Judge Francesco Depasquale relative to the Government hospital concession awarded to Vitals Global Healthcare, eventually substituted by Steward Health Care. The decision delivered is against the Prime Minister as head of the Executive, as well as the Attorney General, various companies in the Steward Health Care Group and a number of quangos and their representatives.

This Court Case was presented by Adrian Delia when he was Leader of the Opposition. The major part of the Parliamentary discussion has focused on bad governance, fraud and corruption which were all associated with the hospital concession process since its inception.

All this emanates from the Court decision delivered last week. However, those who observe the political scene attentively would be undoubtedly aware that all this was already evident in two reports published by the Auditor General on this hospital concession: the first one published in July 2020 and the second one in December 2021. The Court’s decision, in fact, reinforces the Auditor General’s conclusions.

We do clearly remember that in July 2020 the Auditor General had published a first report running into over 200 pages focusing on the hospital concession tendering process. This was followed by an addendum and later, in December 2021 the Auditor General published a second report, 467 pages long, which reviewed the contractual framework of the hospital concession.

In his reports the Auditor General concluded that the preparatory work carried out by the public sector in relation to the hospital concession was very superficial. The Auditor General’s reports also identified that even before the request for proposals was published Government had already concluded on awarding Vitals Global Healthcare the hospitals concession! Cabinet and even the Finance Minister were generally kept in the dark. 

The Auditor General, in his investigations, found a bank guarantee presented by Vitals Global Healthcare. It was issued by the Bank of India on the 13 March 2015, a fortnight before the request for proposals was even published. This clearly established that the agreement was already sealed even before the public request for proposals had been published. The Auditor General had clearly identified this as a definite proof of collusion. On this basis, the Auditor General had in fact expressed a strongly worded opinion that Vitals Global Healthcare should have been disqualified from participating in the request for proposals relative to the hospitals’ concession.

All this is of paramount importance. Way back in 2020/21 it had led to the Auditor General conclusions which have now been confirmed by Mr Justice Depasquale in the decision delivered last week. This means that government should and could have acted then: it had sufficient information to send Steward Health Care packing. However very clearly it could not act as it was part and parcel of the deceit at hand.

There are however further matters, just as important as the above, which the current debate unfortunately avoids. We should ask: does it make sense for a sector as sensitive as health to be controlled in this manner by the private sector? Does a public-private partnership in the health sector make sense?

These questions are being ignored in the public debate currently at hand. These questions are of a fundamental nature as the replies thereto could identify the manner as to how the private sector can be involved without having a controlling interest and how all those involved can be fairly remunerated without squandering public funds.

The local accumulated experience resulting from this kind of projects is very problematic: we are continuously faced with incorrect decisions, abusive decision-taking as well as substantial suspicions of fraud and corruption. This is being stated with reference not just to this hospital concession but also to the energy deal at the Delimara Power Station and the project at the Luqa elderly residence: St Vincent de Paul. In each case the Auditor General has produced voluminous reports detailing the mayhem generated by the post 2013 Labour government.

It is a failed economic model which discounts public goods. It has also been applied in other sectors: a case in point being the Pembroke land “sold” at throwaway prices in favour of the speculative project of the dB Group. Speculative profit is unfortunately being continuously prioritised over the common good by the present government.

It is crystal clear that if we want the private sector involved in public projects its involvement must be regulated, and the said regulatory regime must be adequately enforced in order to ensure good governance throughout, from inception right through to implementation. So far it is a free for all: the consequences are for all to see.  A lack of clear rules and their enforcement inevitably leads to confusion, fraud and corruption. The whole country, as a result, has to pay the consequences.

published in The Malta Independent on Sunday : 5 March 2023

Wara l-ġuri dwar l-assassinju ta’ Daphne Caruana Galizia

L-iżviluppi drammatiċi tal-lejla fil-Qorti jagħlqu l-każ tal-aħwa Degiorgio. Mhux għal kollox imma. Għax kif qalu diversi drabi, jafu ħafna iktar. Min kien magħhom, min kellimhom, min talabhom is-servizzi tagħhom.

Diġa ħarget informazzjoni dwar dan u ilhom jissemmew l-ismijiet ta’ min iktar jista’ jkun involut.

Issemma diversi drabi Chris Cardona in konnessjoni mal-assassinju ta’ Daphne. Ilu jissemma’. Issa jista’ jkun hemm l-opportunità li l-aħwa Degiorgio jitkellmu kif kien offrew li jagħmlu meta kienu talbu proklama u l-Kabinett irrifjuta għal darba tnejn.

Hemm ukoll l-attentat ta’ hold-up tal-HSBC f’Ħal-Qormi li dwaru kienu issemmew diversi politiċi, fosthom l-ex Ministru Carmelo Abela.

Kemm Cardona kif ukoll Abela jiċħdu l-involviment tagħhom. Abela anke beda proċeduri ta’ libel kontra Jason Azzopardi dwar dan.

Bla dubju fil-ġranet li fis-siegħat u fil-ġranet li ġejjin jista’ jkollna żviluppi li jindikaw x’ser jiġri.

Xejn ma jeskludi li l-aħwa Degiorgio jippruvaw jinnegozjaw tnaqqis fis-sentenza tagħhom bi tpartit ma informazzjoni li twassal għall-proċeduri kriminali kontra oħrajn. Jekk jiġri hekk ikunu ħadu l-proklama b’mod indirett!

After the agricultural fair has ended

The onslaught on agricultural land is continuous. It is unfortunately many a time abated by land use planning operatives. It would be an understatement to emphasise that they should know better.

Among the countless examples faced on a continuous basis I can list the following: the over-development of road infrastructure, quarries, boatyards, solar farms and fireworks factories proposed in rural areas and in lieu of agricultural land. Added to these examples one can add the craze of changing the use of agricultural land into picnic or barbeque areas. This creation of recreational areas is squeezing out agriculture! All this would not happen without the complicity of the Planning Authority and those appointed to lead it.

The agricultural fair organised last week exposed another aspect: the anguish of the farming community. A discussion organised within the precincts of the grounds of the agricultural fair focused on food security. The spiralling cost of imported animal feed fuelled by the Russian invasion of Ukraine as well as international business pressures are adding to the problems of those involved in animal husbandry.

Farmers are being pushed out of the land they have been tilling at an increasing rate. No one in his right senses would dare invest in the modernisation of an agricultural holding in such a climate. The banks, on the other hand, emphasised the farmers who took part in the discussion, are not forthcoming with loans to facilitate matters, most probably as they consider the risks involved too high.

In the meantime, eviction of farmers from the land they have tilled for generations continues unabated as government takes too long to come up with a reform of the agricultural lease legal setup.

Government has, for all intents and purposes, abandoned the agricultural community. In addition, it has repeatedly carved agricultural land into new or widened roads. The irrigated agricultural land at Attard had to make way for the so-called Central Link. Shortly more agricultural land on the outskirts of  Qormi will make way for improvements to the Mrieħel bypass project.  Add this to the planned havoc continuously emanating from the Planning Authority and you can easily understand what the agricultural community has to bear.

It is indeed ironic that a government which boasts of a programme which is intended to create more open spaces is at the same time determined to ruin more natural open spaces on the outskirts of our towns and villages.

It is clear that government has taken a basic political decision: cars have a priority over agriculture. This decision is clearly manifested in the manner of operation of Infrastructure Malta which is gobbling up extensive agricultural land which stands in the way of its projects. It is further manifested in the absolute silence of the Agricultural Ministry when it is faced with this behaviour. The agricultural minister is apparently more interested in our heritage which leaves him little time to focus on the needs of agriculture and the farmers who depend on it for their livelihood.

Given the ever-increasing population on these islands it was always very clear that local agriculture could never, on its own, suffice to cater for our needs. Supplementing local agricultural produce with imported produce should be done with care as there is always a danger that the local market can be flooded with low priced goods which make the life of our farmers more miserable than it already is!

The organisation of the agricultural fair was a good idea. It must however be supplemented with a heavy dose of good faith which is missing in the attitudes of the holders of political office in the Ministry of Agriculture through the rest of the year, that is when there is no agricultural fair!

published on the Malta Independent on Sunday : 29 May 2022

Wara r-riżenja ta’ Justyne

Issa Justyne irriżenjat għat-tieni darba mill-Kabinett ta’ Robert Abela. Il-Kabinett ta’ Abela, l-ikbar wieħed fl-istorja, naqas bi tnejn, Justyne u Rosianne.

Meta irriżenjat Rosianne ma kien daħal ħadd ġdid fil-Kabinett.

Kif diġa għidt, il-każ ta’ Justyne għadu miftuħ, mhux biss għax il-Kumitat Permanenti tal-Parlament dwar l-Istandards fil-Ħajja Pubblika għad irid jiddiskuti r-rapport (m’għandux għaġġla) imma ukoll għax hemm riżenji oħra li jeħtieġ li jsiru.

Frank Fabri u Paul Debattista huma mistennija li jwarrbu ma jdumux. Tal-ewwel għax iffirma l-kuntratt abbużiv u illegali u tat-tieni għax kien hu li iffaċilita dan il-qerq kollu billi kiteb ir-rapport li għal xi żmien kien qed jingħad li taparsi kitbu Daniel Bogdanovic u b’hekk ikun jista’ jsir il-ħlas ta’ ħmistax-il elf euro.

Minn kif tkellem Robert Abela jidher li m’għandux għaġġla biex jaħtar Ministru flok Justyne. Dan isaħħaħ ix-xniegħa, li issa ilha ftit ġranet għaddejja, li mhux biss ġejja reshuffle tal-Kabinett dalwaqt, imma li hu ippjanat ukoll li jinbidlu diversi f’karigi mlaħħqin.

Ma ninsewx ukoll li f’Jannar, xahar ieħor, għandu jibda jinstema l-ġuri dwar il-hold-up li falla fuq l-HSBC. Intqal diġa li f’dan il-ġuri jistgħu jsiru rivelazzjonijiet dwar membru ieħor tal-Kabinett ta’ Robert Abela. Din tista’ twassal għal riżenja oħra!

Nistennew u naraw.

Il-Milied it-Tajjeb

A fixed-term Parliament

At this point in time, within the party we are discussing our electoral Manifesto for the forthcoming general election. When will it be held: shortly or much later? At the time of writing no official announcement has been made. Maybe by the time this article is printed matters would be clear.

When presenting proposals for the consideration of the ever-pending Constitutional Convention, we had as a party considered the matter in some detail: should the Prime Minister have the discretion to advise on the dissolution of Parliament?  This was one of the “rights” of Kings and Queens which have been inherited by Heads of Government as a result of democratisation. Since independence it has been the Prime Minister’s right in Malta to advise that Parliament be dissolved and that an election be called.

Over two years have now elapsed since we proposed to the Constitutional Convention that Parliament should have a fixed term and that the election date should be fixed.

Such a provision is normally associated with the American experience on the first Tuesday of the month of November: every alternate year electing the House of Representatives, every four years for electing the President and for electing a third of the Senate every two years.

In the United Kingdom the Liberal-Conservative coalition had in 2011 introduced a fixed-term Parliament Act as a result of which, for the first time ever, the Prime Minister’s role in determining the date of dissolution of Parliament and the subsequent holding of a general election were severely curtailed.

Nick Clegg, then Liberal leader and Deputy Prime Minister had, in piloting the relevant act in Parliament, described such a move stripping Prime Ministers of the power to pick election dates to maximise party advantage as a profound reform. He further emphasised that such a reform was essential to restore faith in politics.

The introduction of a constitutional provision for a fixed-term Parliament would entail removing political self-interest from election timing.

Of course, all Prime Ministers, with tears in their eyes, plead national interest whenever they make use of this discretion.

It would be interesting if we could have an explanation as to what “national interest justification” exists for having a snap-election in Malta at this point in time. Robert Abela’s justification could be as follows.

The first reason to justify a snap election is that come January 2022 a criminal jury relative to the failed HSBC hold-up is scheduled. Possible revelations could spot-light the alleged role of senior Labour Party politicians in the planning of this failed hold-up. Probably Robert Abela thinks that having clear information as to who was involved in planning the HSBC hold-up is not in our interest. It is definitely not in the interest of the Labour Party as it could unmask the Labour Party for what it really is: an eye-opener to some!

The second reason to justify a snap election is the turbulent energy market which could play havoc with the costs to generate electricity locally. Given that we import gas through a contract which is to expire shortly, the price of gas used at Delimara to generate electricity will probably sky-rocket. Alternatively, we use the interconnector to tap energy generated on the mainland. The use of the interconnector was very recently curtailed due to the substantial increase in the price of the energy available!  A substantial increase would impact government finances negatively and Robert Abela would prefer not to have this fact in the public domain during an electoral campaign.

The third reason would be the impacts of grey-listing which are bound to increase with time. The longer it takes to take action as per the agreed road-map with the FATF (Financial Action Task Force) the more the impacts. Labour cannot divorce itself from this. They think that having an election out of the way would at least shield Labour from more electoral impacts of grey-listing.

Having a snap election could potentially shield the Labour Party from these and other impacts which could have a substantial political fallout. The snap election will not address these problems, it will just postpone them into the future.

A fixed-term Parliament would do away with all this. Instead of trying to avoid problems it is better to address them head-on.

published in The Malta Independent on Sunday : 24 October 2021

Il-kontabilità tal-banek għall-ħsara ambjentali

Meta niddibattu l-ħsara ambjentali li qed tiżdied kontinwament madwarna nagħmlu tajjeb li nippuntaw subgħajna lejn ir-regolaturi nkompetenti u lejn ir-regħba tal-hekk imsejħa żviluppaturi. Wasal iż-żmien li ma dawn inżidu l-banek, għax huma l-banek li jiffanzjaw il-proġetti ta’ żvilupp u allura huma jagħmlu din il-ħsara possibli. Anke l-banek, għaldaqstant għandhom l-obbligu li jerfgħu ir-responsabbiltà fuq spallejhom għall-ħsara ambjentali li qed isseħħ: huma qed jiffinanzjawha.

Meta neżaminaw ir-rapporti annwali tal-banek lokali ewlenin hu ċar li dawn huma nteressati biss fil- profitti. Kontinwament taparsi jħossu għall ambjent. Dan jagħmluh biss u esklussivament biex jipproteġu r-reputazzjoni tagħhom.

Il-banek ipinġu lilhom infushom bħala li qegħdin hemm biex ikunu ta’ għajnuna. Regolarment iroxxu ftit flus favur numru ta’ kawżi ġusti. Iżda minkejja din is-sensittività  artifiċjali lejn setturi diversi tal-komunità, il-profitt jibqa’ dejjem prijorità fuq il-lejaltà lejn in-nies u lejn il-komunità.

L-attitudni tagħhom lejn proġetti ta’ żvilupp hi indikattiva ta’ dan. Il-banek rarament jindikaw fl-istqarrijiet pubbliċi inkella fir-rapporti tagħhom jekk u kif jagħtu każ ta’ impatti ambjentali u soċjali meta jkunu qed jikkunsidraw li jgħinu biex ikun iffinanzjat xi proġett ta’ żvilupp.  

Fl-aħħar rapport annwali tiegħu, per eżempju, l-HSBC jirreferi għal dawk li jissejħu Equator Principles. Dawn l-Equator Principles huma sett ta’ kriterji miftehma fuq skala internazzjonali bejn banek u istituzzjonijiet finanzjarji. Huma qafas regolatorju volontarju dwar kif l-istituzzjonijiet finanzjarji għandhom jeżaminaw u jagħtu piz lir-riskji soċjali u ambjentali assoċjati ma’ proġetti li jkunu quddiemhom għall-finanzjament.  Jistabilixxu l-kriterji minimi li għandhom ikunu applikati huma u jittieħdu deċiżjonijiet dwar dawn ir-riskji.  Fost affarijiet oħra, dawn l-Equator Principles jitkellmu dwar kif il-banek u l-istituzzjonijiet finanzjarji għandhom jiddjalogaw mal-utenti (stakeholders) dwar azzjoni effettiva biex ikunu ndirizzati ir-riskji ambjentali u soċjali minn proġetti li jkunu quddiemhom għall-finanzjament.

L-HSBC, sal-lum, ma ippubblikax rapporti jew xi tip ta’ informazzjoni oħra dwar il-mod prattiku kif il-bank qed japplika dawn il-prinċipji f’Malta. Għad irridu naraw kif il-bank qed jassigura ruħu li r-riskji ambjentali u soċjali ġew identifikati u ndirizzati u speċifikament kif il-klijenti żviluppaturi tal-bank qed jiddjalogaw mal-utenti (stakeholders).

Fir-rapport annwali tal-Bank of Valletta, min-naħa l-oħra, insibu spjegazzjoni tal-miri tal-Ġnus Magħquda dwar l-iżvilupp sostenibbli, deskrizzjoni dwar il-kawżi ġusti appoġġjati mill-bank u rendikont tal-azzjoni mittieħda biex il-friegħi tal-bank ikunu effiċjenti fl-użu tal-enerġija u joperaw b’mod li ma jagħmlux ħsara ambjentali. Ir-rapport jiddeskrivi ukoll is-servizzi tal-bank biex il-klijenti tiegħu ikollhom aċċess aħjar għal finanzi biex jimplementaw diversi miżuri ambjentali. Ir-rapport tal-BoV ma jagħmel l-ebda referenza għall-Equator Principles jew xi qafas regolatorju alternattiv.

Il-Lombard Bank, min-naħa l-oħra, fl-aħħar rapport annwali tiegħu jemfasizza l-attenzjoni tal-management biex jimminimizza l-impatti ambjentali mill-operazzjonijiet tiegħu. Jgħidilna li hu ukoll jgħin kawżi ġusti! L-anqas il-Lombard Bank ma jirreferi għall- Equator Principles jew xi linji gwida oħra dwar x’għandu jsir biex il-klijenti żviluppaturi jkunu sorveljati aħjar mill-bank.

Fuq livell ta’ Unjoni Ewropeja il-Bank Ċentrali Ewropew għadu kif approva dokument b’linja gwida dwar ir-riskji klimatiċi u ambjentali li hu applikabbli għas-settur bankarju kollu fl-Unjoni minn din is-sena. Primarjament dan id-dokument jirrigwarda ir-riskji klimatiċi.

Il-banek għandhom responsabbiltà li jassiguraw illi meta jiffinanzjaw proġetti ta’ żvilupp, il-finanzi li jipprovdu ma jkunux użati biex issir jew biex tkun aċċelerata ħsara ambjentali u/jew soċjali. Meta din il-ħsara ambjentali u/jew soċjali sseħħ, ir-responsabbilta m’għandiex tintrefa biss mill-iżviluppatur u mir-regolaturi imma ukoll mill-bank. Għax anke l-bank għandu jkun kontabbli. Wara kollox hu l-bank permezz tal-finanzjament li jipprovdi li jagħmel l-iżvilupp possibli. Kull meta l-banek ikunu kompliċi fi ħsara ambjentali u/jew soċjali ikollhom huma wkoll jerfgħu r-responsabbiltà. Mingħajr l-involviment tagħhom, wara kollox, il-ħsara ma isseħħx!

Ippubblikat fuq Illum: il-Ħadd 29 ta’ Awwissu 2021

Holding banks to account for environmental damage

When discussing the current environmental onslaught developing around us, we rightly focus on incompetent regulators and greedy developers. It is about time that we also address the role of the banks: they make environmental degradation possible as they generally finance the development works which cause the said degradation. As a result, it is about time that banks too shoulder their responsibility for the ever-increasing environmental degradation.

Going through the annual reports of the major local banks it is more than clear that banks are only interested in profits. They engage in continuous greenwashing in order to try and minimise their reputational damage.

The banks portrait themselves as being there to help. They regularly sprinkle some cash to sponsor worthy causes. Notwithstanding this artificial sensitivity towards various sectors of the community, profits always take a priority over people in the banks’ operations.  Financing of development projects are a case in point. Banks rarely indicate in their public statements and reports whether and to what extent they factor in environmental and social considerations when deciding whether to make finance available for any particular development project.

HSBC, for example, refers to the applicability of the Equator Principles in its latest annual report. The Equator Principles are a risk management framework adopted by a number of financial institutions “for determining, assessing and managing environmental and social risk in projects.” They are intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making.  Among other matters the Equator Principles deal with stakeholder engagement and require effective action dealing with environmental and social risks by developers who seek financial facilities from banks.

HSBC has not to date publicly reported on the matter as to the practical manner in which it applies these principles in Malta. We have yet to see how the bank establishes that environmental and social risks have been assessed and specifically the extent to which the bank ensures that proper stakeholder engagement has been carried out by its developer clients!

The Bank of Valletta annual report on the other hand gives us its take on the UN’s Sustainable Development Goals, describes at some length the worthy causes which it supports and explains the action taken to ensure that its branches are energy efficient and environmentally friendly. It also describes its services which facilitate client access to finance environmentally friendly initiatives. The Bank of Valletta Annual Report does not make any reference to the Equator Principles.

Lombard Bank in its latest annual report emphasises that it takes great care in minimising the environmental impacts of its operations. It also stresses its extensive contributions and initiatives to a number of worthy causes. Lombard Bank does not refer to the Equator Principles or any other benchmark or standard which it applies when dealing with its developer clients.

On an EU level the European Central Bank has very recently approved a “Guide on Climate-Related and Environmental Risks” applicable to the banking sector throughout the European Union as from this year.  As its title indicates it is primarily concerned with climate-related risks.

Banks have a responsibility to ensure that when financing development projects, the finance made available is not utilised to cause or accelerate environmental and/or social damage. Whenever such environmental and/or social damage arises it is not just the developers and the regulators which should shoulder responsibility for the said damage. Even banks should be held to account. They make it possible! Banks should pay the price whenever they are collaborators in the ever-increasing environmental degradation. They make it happen!

Published in The Malta Independent on Sunday : 29 August 2021

Tibdil tal-klima: miżuri li jeħtieġ li jkunu ġusti

Huwa essenzjali li nilħqu l-mira ta’ emissjonijiet żero tal-karbonju (carbon neutrality). Ilu żmien ovvju li ekonomija dipendenti fuq iż-żjut mhiex waħda sostenibbli. Il-Konvenzjoni tal-Ġnus Magħquda dwar it-Tibdil fil-Klima, fis-summit ta’ Pariġi, fl-2015, kienet fasslet pjan dwar it-triq meħtieġa biex nintlaħqu miri li jħarsu l-klima. Jekk ma nimxux ma’ dan il-pjan, il-futur ifisser biss gwaj.

It-tibdil fil-klima diġa qiegħed magħna.  Madanakollu, l-impatti fuqna jistgħu jkunu ferm agħar minn dak li għaddej bħalissa: temperaturi estremi, nixfa’ kbira f’xi reġjuni u għargħar f’oħrajn. Id-diżastri qed iseħħu quddiem għajnejna kuljum. Il-qagħda għad trid teħżien bosta, qabel ma l-affarijiet (forsi) jaqilbu għall-aħjar.

It-temperatura medja fuq livell globali qed tiżdied. It-temperatura imkejla tvarja minn reġjun għall-ieħor. Fil-Mediterranean, studji riċenti qed jindikaw li qegħdin viċin li naqbżu żieda ta’ grad u nofs Celsius fuq it-temperatura pre-industrijali. L-impatti ta’ dan diġa qed inħossuhom.

Bħala stat gżira, Malta messa li hi fuq quddiem fid-dibattitu globali dwar it-tibdil fil-klima.  Sfortunatament, pajjiżna hu fost dawk il-pajjiżi li kontinwament ikaxkru saqajhom biex jevitaw jew inaqqsu l-azzjoni meħtieġa da parti tagħhom. Il-fatt li aħna żgħar ma jeżentaniex mir-responsabbiltà tagħna lejn il-futur.

Fost l-eżempji ta’ dan hemm ir-resistenza, tul is-snin, biex nagħtu importanza lill-ġenerazzjoni ta’ enerġija rinovabbli flimkien mat-tkaxkir tas-saqajn għall-proċess tal-elettrifikazzjoni tat-trasport.  

Ilkoll niftakru l-insistenza tal-Gvernijiet Maltin mal-Kummissjoni Ewropeja biex il-miri ta’ Malta dwar l-enerġija rinovabbli ma jkunux l-20 fil-mija iffissati mill-Kummissjoni imma jinżlu għal 10 fil-mija tal-enerġija totali ġġenerata.  Bl-istess mod, minkejja li fl-2017 saret dikjarazzjoni politika mill-Gvern favur l-elettrifikazzjoni tat-trasport, wara 4 snin għadna bla pjan u miri ċari. Il-bidla issa ser ikollha isseħħ b’ritmu mgħaġġel u ftit li xejn jidher li bħala pajjiż aħna ippreparati għaliha.

L-Unjoni Ewropeja għadha kemm żvelat pjan bi proposti biex l-emissjonijiet serra jitnaqqsu b’55 fil-mija meta mqabbel ma dawk tal-1990. Dan għandu jseħħ sal-2030, u dan bħala mira intermedja fit-triq lejn emmissjonijiet żero tal-karbonju (carbon neutrality) sas-sena 2050.

Waħda mill-proposti li qed issir hi li l-enerġija minn sorsi rinovabbli ġġenerata fl-Unjoni Ewropeja tkun ta’ 40 fil-mija mill-enerġija kollha użata. Dan ikun ifisser li fi żmien 9 snin Malta jkun jeħtieġilha li timmultiplika b’erbgħa l-enerġija rinovabbli li niġġeneraw fil-pajjiż. Din ser tkun mira iebsa, iktar u iktar meta tieħu kont tal-fatt li tul is-snin il-pajjiż dejjem ipprova jiżloq mill-obbligi tiegħu f’dan il-qasam.

Proposta oħra tal-Unjoni Ewropeja hi li sal-2035 ma jidħlux iktar fis-suq karozzi li jaħdmu bid-dijsil u l-petrol. Din mira li ser ikun meħtieġ li nilħquha fi żmien 14-il sena. Lokalment din mhi ser issolvi xejn jekk ma tkunx imżewġa ma miżuri biex jonqsu l-karozzi mit-toroq.

Proposta oħra tal-Kummissjoni Ewropeja hi dwar l-introduzzjoni ta’ taxxa fuq il-fjuwil użat milll-vapuri kif ukoll dak użat fl-avjazzjoni. Din il-proposta bla dubju jkollha impatt mhux żgħir fuq il-gżejjer u l-istati periferali Ewropej. Hi proposta li hi motivata mill-fatt li l-Ewropa kontinentali hi moqdija iktar bil-ferrovija, ġeneralment effiċjenti u li hu meqjus li tħalli impatti ambjentali ferm inqas mill-ajruplani.

Bi proposta ta’ din ix-xorta it-turiżmu jintlaqat sewwa. Kemm tkun kbira d-daqqa jiddependi minn kemm tkun kbira taxxa ta’ din ix-xorta.  Malta, il-Greċja u Ċipru diġa qed jgħidu li ma jaqblux ma dan!

Kemm is-settur tal-avjazzjoni kif ukoll dak marittimu huma kontributuri sinifikanti ta’ emissjonijiet serra. Sal-lum dawn iż-żewġ setturi evitaw  li jkunu nklużi fil-miżuri biex inkun mħarsa mit-tibdil fil-klima minħabba lobbying qawwi. Il-proposti tal-Unjoni Ewropeja jekk jidħlu fis-seħħ jibdlu din is-sitwazzjioni, dejjem sakemm il-lobbying jinżamm taħt kontroll!

Uħud diġa iddeskrivew dawn il-proposti (u oħrajn) tal-Unjoni Ewropeja bħala suwiċidju politiku u dan minħabba li l-impatti konsiderevoli tagħhom jistgħu jkunu l-kawża ta’ nkwiet soċjali qalil. Li nilħqu l-mira ta’ emissjoni żero tal-karbonju hu essenzjali imma rridu nkunu konxji li l-impatti tal-miżuri meħtieġa inevitabilment ser iweġġgħu bosta bihom.  Id-diskussjoni meħtieġa trid tassigura li waqt li jittieħdu d-deċiżjonijiet meħtieġa bla iktar dewmien, il-vulnerabbli, inkluż dawk bla mezzi jew b’mezzi limitati, għandhom ikunu mħarsa  milli jkunu huma li jħallsu għall-ispiża akkumulata minħabba nuqqas ta’ azzjoni għal snin kbar.

L-ikbar sfida ghal dan il-Patt Aħdar hi li l-bidla meħtieġa teħtieġ li tkun waħda li issir b’ġustizzja. It-trasformazzjoni ekoloġika teħtieġ li tkun soċjalment ġusta. Dan tagħmlu billi tpoġġi lin-nies mhux il-kapital jew il-profitti bħala l-konsiderazzjoni ċentrali tagħha. Il-bidla, iżda trid isseħħ illum qabel għada. Iktar ma ndumu nkaxkru saqajna, iktar ikun għoli l-prezz li jkollna nħallsu.

ippubblikat fuq Illum: il-Ħadd 18 ta’ Lulju 2021

Change must be fair

Achieving carbon neutrality is long overdue. It has long been obvious that an economy that is dependent on fossil fuel is not sustainable. The UNFCCC (United Nations Framework Convention for Climate Change) at its 2015 Paris summit finally agreed to plot the basic roadmap required. If we do not follow this roadmap, havoc is the name of the future.

Climate change is already here. However, its impacts can be much worse than what we are already experiencing: extremes of temperature, drought in some regions with floods in others. We see the disasters developing almost daily. It will get much worse before it can get any better.

The mean global temperature is rising. The measured increase varies between one region and another. In the Mediterranean, recent studies have indicated that here we are very close to surpassing a 1.5-degree Celsius rise over the pre-industrial age temperature. We can feel the impact already.

As an island state Malta should be at the forefront of the global climate change debate. Unfortunately, our country is among the laggards continuously seeking to avoid or minimise the action required at our end. Our size does not exempt us from our responsibilities towards the future.

Our slow take-up of renewable energy over the years and the institutional resistance to transport electrification are among the most obvious examples.

We do remember the insistence on the part of Maltese governments with the EU Commission that Malta renewable energy targets should be 10 per cent and not 20 per cent of the energy generated. Likewise, after a policy announcement in favour of transport electrification in 2017, four years down the line we are still without clear targets. The change will now have to be adopted at a quicker pace, and one which we are not yet prepared for.

The EU has unveiled a proposal intended to reduce greenhouse gas emissions by 55 per cent, compared to 1990 levels, by the year 2030, an intermediate target on the roadmap to carbon neutrality by 2050.

One of the measures proposed would require raising the share of the renewable energy generated to 40 per cent of the final energy consumption, meaning that Malta, within nine years, would be required to quadruple the renewable energy which it generates. This would be quite tough, in view of having repeatedly been successful in wriggling of our commitments over the years.

A de facto ban on petrol and diesel cars by 2035 would accelerate our path to electrification of transport. That is a target to be achieved within fourteen years. Locally, however, it will not solve much, if not coupled with a substantial decrease in private car usage.

The proposal to tax shipping and aviation fuel would undoubtedly have a considerable impact on islands and the peripheral states of Europe. It makes sense when applied to the European mainland which is more dependent on railways, a suitable alternative. In respect of islands and the peripheral states it will be certainly painful, even though it will, when applied, contribute to achieving emission reduction targets.

Tourism would be hit considerably by a tax on aviation fuel, dependent on the extent of the taxation rates applied.

The aviation and maritime sector are significant contributors of greenhouse gas emissions which have so far have avoided being addressed due to very effective lobbying over the years. The EU proposals would ensure that this will no longer be the state of affairs, dependent that is, on the taming of the lobbies!

Some have already described the proposals of the EU Commission as political suicide as their far-reaching impacts could trigger considerable social unrest. Achieving carbon neutrality is essential but the paths selected will be very painful, some more than others. In the ensuing discussion we have to ensure that while the essential decisions are taken without delay the poor and the most vulnerable are shielded from having to pay the accumulated cost of inaction over the years.

The biggest challenge we face is to ensure that the Green Deal is fair. The ecological transformation must be socially just and place people, not profits, as its central consideration. Change must however happen the soonest. The longer we postpone taking action the higher the price we will have to pay.

Published in The Malta Independent on Sunday : 18 July 2021