Corruption: the institutions are not working

Reading through the media court reports on the Qormi murder earlier this week confirms that the Police in Malta can carry out crime investigations assiduously and bring them to their logical conclusions when they are left to carry out their work free from any pressures whatsoever.

The same, unfortunately, cannot be said on Police investigations relative to corruption.

Last week, in my article (Phone call from the Ministry: TMIS 4 September 2022) I referred to the cryptic language used in the evidence delivered in Court by the Police Inspector in the car licence corruption case. This, I argued, is conveying the unmistakable message that holders of political office and their hangers-on are dealt with kids gloves by the police investigators, thereby facilitating the development of clientelism into corruption.

During the public protest held last Tuesday against corruption organised by the NGO Repubblika it was once more explained as to how the authorities (that is the Commissioner of Police and the Attorney General’s office) have failed to act on the conclusions of the report of the magisterial inquiry into the operations of Pilatus Bank.

Repubblika President, Robert Aquilina, quoting chapter and verse from the magisterial inquiry report, explained how the Courts have instructed the said authorities to take criminal action against various former officials of Pilatus Bank. However only one former official was arraigned. All the others whom the inquiring magistrate pointed out have not been arraigned to account for their actions.

This has led to the unprecedented step of NGO Repubblika challenging the police authorities and the Attorney General in Court for failing to carrying out their duties. The authorities, are not functioning, Robert Aquilina rightfully claimed!

To substantiate his claim, he presented the relevant extracts from the report of the magisterial inquiry on the operations of Pilatus Bank.

To add insult to injury, the magistrate examining the challenge in Court, instead of requesting the police and the Attorney General to explain their “ifs” and “whys” turned on the NGO leadership in order to identify how the magisterial inquiry report came into their possession. Instead of shielding citizens seeking justice, unfortunately, the magistrate is shielding those who are sending out the clear message that, after all, crime pays, if you have friends located in the right places.

Instead of acting against the corrupt the courts are acting against those who are vigilant enough to note that the institutions are failing to carry out their basic duties.

This is the basic message being conveyed. The institutions are not working as they are not taking the necessary action to ensure that justice is done and that our society is defended against corruption. In addition to this blatant breach of trust, the institutions are also obstructing those who, notwithstanding the odds stacked against them are seeking to remedy the situation.

If this was not enough, we have just learnt of a secret agreement between the Azeri company SOCAR and the Maltese government, then represented by Konrad Mizzi. Irrespective of whether this agreement was implemented or not, it is another case of abusive use of Ministerial powers and should be properly investigated.

Faced with all this, nobody can remain passive. This is the tip of the corruption iceberg that has stifled our country and has been doing so for quite some time.

It is no wonder that Malta’s reputation has gone to the dogs!

published in The Malta Independent on Sunday: 11 September 2022

Telefonata mill-Ministeru

Il-biċċa qerq dwar il-liċenzji tas-sewqan li nkixfet fil-Qorti iktar kmieni din il-ġimgħa hi inkwetanti ħafna. Dan qed ngħidu in vista tal-informazzjoni sensittiva li dwarha ingħatat biss indikazzjoni żgħira fix-xhieda li instemgħet s’issa fil-Qorti. Id-dettalji dwar dan kollu li jikkonċerna korruzzjoni fl-eżamijiet tejoretiċi dwar is-sewqan, għadhom mhux magħrufa.

S’issa ġew imħarrka tlett irġiel:  wieħed mid-Diretturi u żewġ uffiċjali ta’ Trasport Malta, li wieħed minnhom kien elett bħala kunsillier fil-Kunsill Lokali ta’ Ħaż- Żebbuġ f’isem il-Partit Laburista.  

Kien żvelat fil-Qorti li l-akkużati, waqt li kienu interrogati, iġġustifikaw l-azzjonijiet tagħhom billi emfasizzaw li kienu soġġetti għal pressjoni politika kontinwa.  L-uffiċjal anżjan fost dawk akkużati ilmenta li ħassu taħt pressjoni kbira minħabba t-telefonati kontinwi minn diversi Ministeri.

Fix-xhieda mogħtija s’issa l-pulizija żvelat li f’mobile li ġabru sabu “chats diversi ma’ persuni b’rabta ma’ partit politiku”. Ma hemm l-ebda informazzjoni uffiċjali dwar l-identità ta’ dan il-partit politiku. L-unika ħaġa li nista’ ngħid hi li dan il-partit definittivament mhux l- ADPD!

Xi ħadd li kellu aċċess għall-informazzjoni fuq il-mobile maqbud imma, fuq il-media soċjali, indirettament żvela l-għala l-pulizija hi kawta u mhux tiżvela ismijiet ta’ dawk involuti. Jidher li rrealizzaw li l-ismijiet, hekk kif ikunu żvelati jistgħu joħolqu terrimot politiku li bħalu qatt ma rajna.  Skont l-informazzjoni mhux uffiċjali li qed tiċċirkola b’mod elettroniku jidher li ġew identifikati bħala li ħadu sehem f’din il-biċċa qerq taħt investigazzjoni 4 membri attwali tal-Kabinett flimkien ma tnejn oħra li m’għadhomx fil-Kabinett.  Mid-dehra l-parti l-kbira ta’ dawk inkarigati mis-Segretarjat tal-Ministri kif ukoll numru ta’  Membri Parlamentari huma mdeffsa ukoll.

Fl-investigazzjonijiet tagħhom il-Pulizija jidher li f’uffiċċju ta’wieħed mill-akkużati sabu żewġ djarji b’informazzjoni sostanzjali li kienet tikkonsisti f’ismijiet, numri tal-karta tal-identità kif ukoll id-dati ta’ meta dawk li gawdew mill-irregolaritajiet investigati qagħdu għall-eżami tejoretiku għall-liċenzja tas-sewqan.

Wieħed mill-akkużati qed jiddefendieħ il-kelliemi tal-Opposizzjoni dwar l-Intern, l-Avukat  Dr Joe Giglio, avukat bi prattika estensiva fil-qasam tal-liġi kriminali.  Mhux etika li membri parlamentari jinvolvu ruħhom f’dawn il-każijiet. Id-difiża ta’ persuni akkużati bl-involviment fil-korruzzjoni mhiex kompatibbli mal-ħidma politika kontra l-istess korruzzjoni. Ma jistax ikun kredibbli jekk jipprova jkollu saqajh fuq iż-żewġ naħat.  Dan qed ixellef sewwa l-kredibilità politika tiegħu. Jidher li mill-kaz tal-Bank Pilatus ma’ tgħallem xejn!

Minn din l-istorja kollha  hemm żewġ punti ta’ importanza.

Għalfejn il-Pulizija joqgħodu lura milli jagħtu informazzjoni fejn ikun hemm il-politiċi involuti? Il-kliem nieqes miċ-ċarezza li intuża mill-Ispettur tal-Pulizija fil-Qorti din il-ġimgħa jwassal dan il-messaġġ. Ma jkunx ferm iktar għaqli li min qiegħed hemm biex iħares il-liġi ma jibqgħax jimxi bl-ingwanti tal-ħarir mal-membri tal-Kabinett?

Imbagħad xi ngħidu għall-irbit li għandhom il-membri parlamentari mal-professjoni jew xogħol tagħhom? Meta ser jinħallu minn dan l-irbit li jxekkilhom fil-qadi ta’ dmirijiethom? Kif propost repetutament minn ADPD fid-diversi manifesti elettorali, għandna bżonn  Parlament li mill-iktar fis ikun magħmul minn membri li jiddedikaw ħinhom kollu għall-ħidma Parlamentari. Huwa b’dan il-mod biss li l-Parlament jista’ jkun kredibbli u possibilment effettiv.

ippubblikat fuq Illum: 4 ta’ Settembru 2022

Phone call from the Ministry

The driving licence racket unveiled in Court earlier this week is extremely disturbing. This is being stated in view of the sensitive information indicated in the testimony heard so far in Court but the details of which are still under wraps. The case involves corruption in driving theory tests.

Three men have so far been arraigned: the Director for Land Transport at Transport Malta and two other Transport Malta officers one of whom is a Żebbuġ Local Councillor elected on behalf of the Labour Party.

It was revealed in Court that the accused, when interrogated, had justified their actions by emphasising that they were under constant “political” pressure. The senior among the accused complained that he felt pressured as he was getting continuous calls from various Ministries.

The police have revealed, in the testimony so far, that a mobile phone in their possession has “revealed chats with people linked to a political party”. No further official information is available as to the identity of this political party.  It is definitely not ADPD!

Someone having access to the mobile phone data has however indirectly revealed on social media the reason why the police have been cautious in revealing the names of those involved in this racket. It seems that the Police have realised that these names, once revealed, could cause a political earthquake the likes of which we have never seen. According to the unofficial information circulating online, the names of at least four current members of the Cabinet as well as two former ones have been so far identified as being possibly involved in the racket being investigated. Apparently, most of the Ministries’ Chief of Staff as well as a number of Members of Parliament may also have a finger in the pie.

Apparently in a Transport Malta office used by one of the accused, the police, during their investigations came across two diaries containing substantial information consisting of names, ID card numbers and dates when the persons benefitting from the irregularities under investigation were due to sit for their theoretical driving exams. The persons indicated were apparently “helped” in order to ensure that they were successful.

One of the accused is being defended by the shadow minister for Home Affairs, Dr Joe Giglio, a lawyer with an extensive criminal law practice. It is extremely unethical for members of parliament to involve themselves in such cases. His defence of clients accused with involvement in corruption is incompatible with his political actions against corruption in the political arena. He cannot be credible if he runs with the hares and then tries hunting with the hounds. He is severely denting his own credibility. Apparently, he has not learnt anything from his experiences as the legal advisor of Pilatus Bank.

This racket brings two basic issues to the fore.

Why are the Police (so far) withholding information on the holders of political office involved? The cryptic language used by the Police Inspector in Court this week transmits this basic message. Isn’t it about time that law enforcement does not treat the members of the Cabinet and their hangers-on with kids’ gloves?

When will all members of Parliament cut themselves free from the restraints of their professional practices or their previous employment? As ADPD has repeatedly proposed over the years, we need a full time Parliament as soon as possible.  It is only in this way that parliament can be credible and possibly effective.

published in The Malta Independent on Sunday: 4 September 2022

Joe Giglio mhux mejjet bil-ġuħ !

Joe Giglio qed jiddefendi lil wieħed minn dawk li huma akkużati bil-korrużżjoni fil-ħruġ tal-liċenzji.

Sfortunatament mhux jara l-kunflitt li hemm bejn xogħolu ta’ avukat u dak ta’ Membru Parlamentari u shadow minister għall-intern. Mhux l-ewwel wieħed! Kien hemm oħrajn qablu, (fil-PN stess) li għamlu dan l-istess żball, anke fil-passat riċenti.

Xogħolu ta’ avukat jinvolvi li jiddefendi lill-akkużat. Xogħolu bħala politiku jinvolvi id-difiża tal-pajjiż. Ma jistax jagħmel waħda minn dawn sew mingħajr ma jtappan l-oħra.

Jidher li għadu ma tgħallem xejn minn meta kien iddefenda lill-Bank Pilatus! Mhux mejjet bil-ġuħ, imma ……

Ftit ħsibijiet dwar il-baġit li jmiss

F’dawn il-ġranet, fil-Ministeru tal-Finanzi jkun qed isir ix-xogħol preparattiv dwar il-baġit li normalment ikunu imħabbar matul ix-xahar ta’ Ottubru.

Il-Ministru tal-Finanzi, mid-dehra diġa ddeċieda li jagħti l-aħħar irtokki biex ikompli jiffinanzja l-klijenteliżmu fl-Air Malta.  Dan hu proġett fit-tul li l-ħidma dwaru ilha għaddejja fuqu mill-predeċessuri tiegħu. Proġett li jinvolvi iktar miljuni ta’ euro ġejjin mit-taxxi tagħna li ser ikunu moħlija biex jonoraw wegħdiet politiċi li saru matul il-kampanja elettorali tal-elezzjoni ġenerali li għada kif għaddiet. Din hi irregolarità oħra bħat-tqassim tac-ċekkijiet bieb bieb waqt il-kampanja elettorali. Monument “xieraq” għall-klijenteliżmu politiku.

L-għoli tal-ħajja spara l-fuq, bla kontroll. Probabbilment li l-COLA, ż-żieda għall-għoli tal-ħajja għall-pagi,salarji u pensjonijiet, li titħabbar bħala parti mill-baġit li jmiss, tkun madwar €10 fil-ġimgħa. Il-Ministru Clyde Caruana diġa qal li din kienet tkun sostanzjalment għola minn hekk kieku l-Gvern ma issussidjax il-petrol/dijsil u l-kontijiet tal-elettriku u l-ilma.

Hemm ħtieġa li niddiskutu ftit iktar dawn is-sussidji biex ikunu aħjar, iktar effettivi u li jilħqu lil min verament jeħtieġhom. Fiċ-ċirkustanzi attwali hi politika tajba li l-użu bażiku jkun issussidjat, imma mhux għaqli li fuq tul ta’ żmien dan jibqa’ sussidju sħiħ għall-konsum kollu. Għax is-sussidji mhux qed imorru għand il-vulnerabbli biss: min mhux vulnerabbli għandu bżonn inqas tas-sussidji tal-lum.  Is-sussidji jeħtieġ li jkunu ffukati jekk irridu li l-pajjiż ikun ta’ għajnuna utli għall-vulnerabbli. Għax ir-riżorsi tal-pajjiż ma jippermettux li nibqgħu sejrin kif aħna fit-tul.

Xi ġranet ilu, s-sussidju fuq il-fuel li jieħdu l-inġenji tal-baħar tneħħa. Dan hu sewwa u seta ġie evitat mill-bidu. Imma dan mhux biżżejjed.  It-tnaqqis gradwali tas-sussidji fuq il-petrol u d-dijżil mhux biss inaqqas il-karozzi mit-toroq u jtejjeb il-kwalità tal-arja, imma fuq kollox jagħmilha possibli li iktar finanzi jkunu allokati għal oqsma oħra li tant jeħtieġu l-attenzjoni.

Il-Kamra tal-Kummerċ għamlet tajjeb li tkellmet dwar ftit iktar ħsieb fuq kif ikunu issussidjati l-kontijiet tal-elettriku u l-ilma. Anke f’dan il-qasam hu l-użu bażiku li għandu jkun issussidjat. Sussidji iktar minn hekk ifisser li anke l-użu esaġerat tal-elettriku u l-ilma qed ikun issussidjat. Dan hu użu ħażin ta’ fondi pubbliċi lijista’ jkun indirizzat bla diffikultà.

Naqbel perfettament ma’ Josef Bugeja tal-GWU li iż-żieda għall-għoli tal-ħajja għandha titħallas kollha lil min jaħdem (u lill-pensjonanti). Il-COLA mhiex, wara kollox, żieda fil-paga imma tipprova tagħmel tajjeb għall-impatt tal-inflazzjoni fuq il-paga, salarju jew pensjoni.

Imma tibqa’ l-ħtieġa ta’ bidla mill-qiegħ dwar il-politika li tikkonċerna l-pagi (incomes policy) biex din tkun dejjem iktar relevanti għaż-żmien li qed ngħixu fih.

Ilna ħafna nitkellmu dwar il-ħtieġa li l-baskett ta’ oġġetti u servizzi li jservu biex fuqhom tinħadem il-paga minima u l-COLA jkun revedut biex ikun assigurat li dan jirrifletti l-ħtiġijiet tal-lum. L-istudji li ippubblikat il-Caritas tul dawn l-aħħar snin jiffukaw eżattament fuq hekk. Minn dawn l-istudji joħroġ ċar li reviżjoni tal-baskett ta’ oġġetti u servizzi jwassal għal żieda inevitabbli ta’ 40 fil-mija fil-paga minima kurrenti. Li dan ikun indirizzat bla iktar dewmien hu essenzjali. Ifisser, skond dawn l-istudji tal-Caritas, li paga minima diċenti għandha tkun ta’ madwar l- €14,000 fis-sena.

L-inflazzjoni  sostanzjali ta’ din is-sena jfisser li l-vulnerabbli fostna għaddejjin minn żmien diffiċli. F’dawn iċ-ċirkustanzi ikun mill-iktar raġjonevoli li l-COLA titħallas darbtejn fis-sena: fl-1 ta’ Lulju u l-1 ta’ Jannar. Dan ma jżidx l-ammont li jitħallas imma billi dan jinqasam fi tnejn, u parti titħallas sitt xhur qabel, inaqqas ħafna l-piz fuq spallejn il-vulnerabbli.

Għadna qed nistennew lill-Onorevoli Ministru tal-Finanzi biex iwettaq dak li wiegħed is-sena l-oħra bl-introduzzjoni ta’ mekkaniżmu speċjali li jipproteġi lill-vulnerabbli mill-impatti tal-għoli tal-ħajja. Għadna nistennew, imma l-Onorevoli Ministru jidher li hu iktar ippreokkupat biex jonora l-wegħdiet konnessi mal-klijenteliżmu politiku fl-Air Malta.

ippubblikat fuq : Illum: 21 t’Awwissu 2022

Some budgetary considerations

In the Finance Ministry this is the time when they gear up to prepare next year’s budget which is normally presented sometime in October.

The Hon Minister for Finance has apparently already decided to proceed with the finishing touches to further finance clientelism in Air Malta. This is a long-term project what they call “works in progress”. It involves more millions of euro in taxpayer’s money down the drain to honour political pledges made during the March 2022 general election. This is another corrupt practice together with the distribution of cheques to every household during the general election campaign. A “fitting” monument to political clientelism.

The cost-of-living is out of control. Most probably that the COLA, the cost-of-living adjustment to wages, salaries and pensions, announced during the budget speech will be around €10 per week. Minister Clyde Caruana states that it could be substantially more if government did not subsidise fuel and electricity bills.

The blanket subsidises of fuel and electricity bills need to be revisited in order that they are more effective in supporting the vulnerable. In the present circumstances it is good policy to subsidise basic use but it does not make sense for a prolonged blanket policy of subsidies. The current subsidies are not going into the pockets of the vulnerable alone. Those who are not amongst the vulnerable can do without most of the current subsidies. Subsidises need to be focused such that they are of help to the most vulnerable. The country does not have the resources to go on in this way for too long a time.

Some days ago, the fuel subsidisation policy was amended in order that the fuelling of pleasure seacraft was at last excluded from further benefitting from the use of subsidised fuel. This is however not enough. The gradual reduction of subsidies of petrol and diesel would not only ease traffic from our roads and improve the quality of our air: they would also make substantial finance available for other areas.

The Chamber of Commerce has also rightfully pointed out that subsidising water and electricity bills across the board needs to be revisited. Even in this area it is basic use which should be subsidised. Subsidising across the board signifies that excessive use is subsidised too. This is a misuse of public funds which we can easily do without.

Josef Bugeja (GWU) is spot on in insisting that the cost-of-living adjustment (COLA) should be paid out in full to all employees (and pensioners). It has to be underlined that COLA is not an increase in wages and salaries. It merely makes good for the impact of inflation on wages, salaries and pensions during the past year.

There is however need for a long overdue overhaul of the incomes policy to make it more relevant to this day and age.

It is about time that the basket of goods and services used to compute the minimum wage and the COLA is revised in order to ensure that it reflects todays needs. The Caritas studies throughout the years have made this basic contribution to the debate: revising the basket of goods and services would identify a 40 per cent shortfall in the current minimum wage. The sooner this is addressed the better. On the basis of the Caritas studies, currently a decent minimum wage should be around €14,000 per annum.

The substantial inflation throughout this year signifies that the vulnerable amongst us are passing though a very difficult patch. In such circumstances it would be reasonable to consider having COLA paid twice a year: 1st July and 1st January. This would not increase the amount due but by splitting it in two, and bringing forward part of its payment by six months, would reduce the burden shouldered by the most vulnerable amongst us.

We are still waiting for the Hon Minister of Finance to honour his commitment made this time last year to address the cost-of-living impacts on the vulnerable through some special mechanism. We are still waiting, unfortunately, as the Hon Minister is more preoccupied in servicing clientelism at Air Malta.

published on The Malta Independent on Sunday: 21 August 2022

Stormwater Management: entrenched incompetence

(photo by author dated 4 October 2018: overflowing sewer at Archbishop Gonzi Square Kalkara)

The Ministry for Public Works and Planning has embarked on another public consultation on stormwater management. I have lost count as to the number of times this exercise has been carried out along the years, directly or indirectly. At the end of the day the authorities continuously develop cold feet as they fail to address the basic issue: enforcement!

The consultation document points to a basic statistic which proves this point: only 36 per cent of dwellings have a water cistern. This notwithstanding that the matter has been codified in our legislation since 1880: that is since the approval of Ordinance I of 1880 by the British colonial government. Before that date most buildings had a water cistern. Everyone was then aware that water in Malta is scarce and all sought to do their part in collecting rainwater. Nowadays no one cares, as long as there is water in the tap!

The consultation document, entitled Green Stormwater Infrastructure Guidance Manual, drawing on Census 2011 information, further points out that it is in the sector of apartment blocks that one finds the largest number of infringements in non-provision of water cisterns. Compliance ranges from 80 per cent in the case of villas to 4 per cent in the case of apartments. On a geographic level it is probably no surprise that Gozo is only 25 per cent compliant!

As is also pointed out by the consultation document the present state of water harvesting is the result of a lack of adequate enforcement. I would emphasise that it is a case of an incompetent, almost inexistent, enforcement. It is very easy to point at developers who try to avoid excavating or constructing water cisterns, reducing his costs and increasing profits. They have a number of accomplices, who ignore this fact and then proceed to certify works as having been completed satisfactorily. In these instances, compliance certificates are issued just the same by the Planning Authority. Likewise, the Water Services Corporation authorises the connection of foul water drains from such developments to the public sewer without generally bothering to ascertain as to where rainwater is being collected or directed.

Rainwater is to be collected in a water cistern which should be fitted with an overflow which directs excess rainwater onto the street. Instead, a number of developments direct all rainwater directly onto the street. At times, unfortunately increasing in frequency, rainwater is disposed of directly into the public sewer.

This is the cause of flooded streets and overflowing sewers with which we are very familiar during and after heavy rainfall.

Enforcement hits hard as non-compliance is widespread. This is the primary reason as to why no government has seriously embarked on tackling this problem. In the past government, instead of addressing the root cause of the problem, that is the non-provision of water cisterns, embarked on the drilling of a number of tunnels to facilitate the collection of rainwater and its dumping into the sea. Millions of euros in EU funds were utilised in this exercise, literally money down the drain.  Notwithstanding this misapplication of EU funds, the problem of flooded streets and overflowing sewers is still a common occurrence during and immediately after heavy rainfall.

Having expertly drawn up codes and manuals is generally helpful. It is however no substitute for clear indiscriminate enforcement: no exceptions allowed. It is what we lack. It is the result of clientelism forming an integral part of the philosophy of government and administration. It is a political disease which is not limited to stormwater management but as we all know is spread throughout the public administration.

If those employed to implement our laws, rules and regulations get on with their jobs, the problem of stormwater management would be substantially smaller, and definitely quite manageable!

The basic problem which the consultation document does not discuss is that there is no political will to ensure that simple rules on rainwater harvesting are observed by all. The rest follows.

published in The Malta Independent on Sunday : 3rd July 2022

Transport Malta: incompetence or collusion?

Throughout the past days the media has revealed a second-hand car racket as a result of which some of the used cars imported from Japan had their mileage meters tampered with. This in order to indicate that the cars were used much less than they actually were.

A considerable number of consumers have been duped into believing that they were making a deal when in reality they were victims of a fraud in which, inevitably, a number of persons were involved. Reports in the press have detailed the possible way in which the fraud was carried out. A specific garage and a printing press have been mentioned as possible accomplices in carrying out the resulting fraud.

At the time of writing two second-hand car dealers have been identified as being involved in this racket.

Second-hand cars exported from Japan are issued certification by the Japan Export Vehicle Inspection Centre (JEVIC). Such certification details information relative to the second-hand cars exported, which information includes the milage covered by the cars exported. The fraud involved both the physical tampering of the individual car dashboard meter as well as alterations to the accompanying documentation issued by JEVIC, if there is no foul play.

It is pertinent to enquire as to what checks were carried out by the regulator, Transport Malta, before carrying out the registration process of these imported second-hand cars. Apparently, no basic checking of the (falsified) documentation was carried out.

Accessing the JEVIC website reveals that Transport Malta requires odometer certification of passenger and goods vehicles by JEVIC prior to export. This information is also available online. Inputting the car chassis number and other relevant information about a second-hand car imported from Japan reveals electronically the certification details of the said second-hand car which details should correspond to the paper documentation issued by JEVIC.

A press release issue by Transport Malta on the 8 June, three days after the fraud was revealed by the media, advises consumers as to how to check if their second-hand car imported from Japan was tampered with. A seven-step instruction is available, ending with the following: if you have less mileage on your instrument cluster than on your JEVIC certificate, contact your car dealer for an explanation.

At this point in time, after the fraud has been revealed, there are many questions which require a clear answer. Topping the list of such questions is the manner in which Transport Malta carried out its regulatory duties when processing applications for the registering of second-hand cars imported from Japan. Apparently, no checks were carried out to verify the validity of the documentation submitted. If such a check was carried out it would have revealed the discrepancies which have now come to light and maybe some action would have been taken to protect consumers from this fraud.

Who was Transport Malta protecting with its silence?

Logical conclusions can be arrived at. One either concludes that the administrative setup at Transport Malta is incompetent or else that it is in collusion with the odometer tampering process. How is it possible to otherwise overlook such a basic check before proceeding to register imported second-hand cars? It is only now that, caught with its pants down, Transport Malta has published a seven-step instruction on how to check as to whether your imported car has been tampered with!

The Minister for Consumer Protection has exclaimed that these allegations shock “the system”. She even emphasised that there is zero tolerance for such fraudulent behaviour.

It would be much better if the Hon Minister ensures that authorities such as Transport Malta are run properly. At best, to date, those running the authority are downright incompetent, at worst in collusion. “The system” certainly needs to be shocked back on track, behaving normally against fraud and not facilitating it.

published in The Malta Independent on Sunday :12 June 2022

Bejgħ tal-passaporti u l-prinċpju ta’ lealtà fl-Unjoni Ewropea

Iktar kmieni din il-ġimgħa, l-kumitat tal-Parlament Ewropew dwar il-libertajiet ċivili u l-ġustizzja,  huwa u jiddiskuti rapport dwar il-bejgħ tal-passaporti (jirreferu għalihom bħala golden passports) mill-istati membri, jemfasizza li dan hu oġġezzjonabbli etikament, legalment u ekonomikament u dan apparti li dan joħloq bosta riskji għas-sigurtà.

Tul is-snin, il-Ministri, kemm f’Malta kif ukoll barra, emfasizzaw li ċ-ċittadinanza, fl-Unjoni Ewropeja, hi materja riżervata għall-istati membri. Hekk hu, imma mhux b’mod assolut. Il-prinċipju ta’ lealtà fit-trattati Ewropej ilewwen il-ħidma tal-istati membri fl-Unjoni. Anke l-oqsma li huma kompetenza nazzjonali għandhom ikunu meqjusa f’dan id-dawl.

Ħadd ma jikkontesta li ċ-ċittadinanza hi kompetenza tal-pajjiżi membri. Hekk għandu jkun. Imma meta nikkunsidraw il-bejgħ taċ-ċittadinaza hemm ħafna implikazzjonijiet oħra, ta’ gravità mhux żgħira. It-trattati tal-Unjoni Ewropeja dan jispjegawh bħala obbligu ta’ kooperazzjoni sinċiera  bejn il-pajjiżi membri, obbligu li bosta drabi huwa mfisser bħala l-prinċipju ta’ lejaltà:  lejaltà, jiġifieri bejn il-pajjiżi membri infushom.

Riċentment, l-amministrazzjoni immexxija minn Robert Abela fasslet emendi mhux żgħar għall-proċess li bih tkun akkwistata ċ-ċittadinanza b’investiment. Il-programm (Individual Investor Programme) inbidel ma skema residenzjali li eventwalment tista’ twassal għal ċittadinanza. Għalkemm l-Unjoni Ewropeja kienet infurmat b’dan it-tibdil, is-Segretarju Parlamentari responsabbli għaċ-ċittadinanza, Alex Muscat, indika li ma kien hemm l-ebda rispons mill-Kummissjoni Ewropeja.

Il-Parlament Ewropew ser jiddiskuti dan kollu fil-plenarja tiegħu tax-xahar id-dieħel.  L-abbozz tar-rapport, b’numru ndaqqas ta’ emendi, jemfasizza li l-iskemi taċ-ċittadinanza b’investiment “hemm it-tendenza li jkunu f’dawk l-istati membri li huma l-iktar esposti għal riskji konnessi mas-segretezza finanzjarja, bħall-evażjoni tat-taxxa, l-ħasil tal-flus u l-korruzzjoni.” 

Fost dawk li kisbu ċ-ċittadinanza Maltija b’investiment insibu lil: Anatoly Hurgin, akkużat bi frodi, kuntrabandu u ħasil ta’ flus kemm fl-Istati Uniti kif ukoll fl-Iżrael, Liu Zhongtian, biljunarju involut fl-aluminju, għaddej proċeduri kriminali fl-Istati Uniti dwar evażjoni  ta’ madwar żewġ biljun euro f’tariffi  Amerikani,  Boris Mints, biljunarju ieħor li qiegħed jiffaċċja akkużi dwar frodi fir-Renju Unit,  Pavel Melnikov, ukoll biljunarju li qiegħed ikun investigat fil-Finlandja dwar ħasil ta’ flus u frodi, u Mustafa Abdel-Wadood li ammetta akkuzi dwar frodi fl-Istati Uniti. Dawn ġew identifikati mill-istampa f’Malta bħala lihumafost dawk li xtraw passaport Malti. Ħadd mhu ser jeskludi li hemm iktar, għax dawn it-tip ta’ skemi huma kalamita għal dawn it-tip ta’ nies..

Dawn, u oħrajn, ħadu iċ-ċittadinanza minkejja li suppost li l-applikazzjonijiet tagħhom kienu eżaminati b’reqqa liema bħala!

Fid-dawl ta’ dan kollu l-logħob ta’ Bernard Grech li jirrifjuta li jieħu sehem fi proċess ta’ konsultazzjoni dwar il-ħatra ta’ regulatur ġdid għall-iskema ta’ ċittadinanza b’investiment tibgħat messaġġ żbaljat. Regulatur li jkollu l-barka ta’ Bernard Grech mhux ser itejjeb l-iskema taċ-ċittadinanza.

Irrispettivament minn kemm jinbidlu r-regoli dwar l-iskema tal-bejgħ tal-passaporti, din tibqa’ mhux aċċettabbli fil-prinċipju. Kif jingħad fir-rapport pendenti quddiem il-Parlament Ewropew iċ-ċittadinanza Ewropeja mhiex għall-biegħ.

Ir-rapport quddiem il-Parlament Ewropew jgħid li l-iskemi taċ-ċittadinanza b’investiment fihom ħafna riskji u mhumiex kompatibbli mal-prinċipju ta’ kooperazzjoni meħtieġa bejn l-istati membri tal-Unjoni Ewropeja. Fid-dawl ta’ dan għandhom jispiċċaw sa mhux iktar tard mis-sena 2025 jgħidilna ir-rapport tal-Parlament Ewropew..

Il-flus jistgħu jkun utli, jgħid Bernard Grech, kieku l-iskemi jkunu trasparenti.  Hi l-istess attitudni li l-PN fil-Gvern daħħal fis-sistema ta’ tassazzjoni meta spiċċa daħħal proposti li jinkoraġixxu l-evażjoni tat-taxxa.  

L-iskema tal-bejgħ tal-passaporti  flimkien mal-abbuż kontinwu tas-sovranità tal-pajjiż fil-qasam tat-tassazzjoni bit-tnaqqis fir-rati ta’ taxxa għal kumpaniji barranin li b’hekk ġew inkoraġġiti jevadu t-taxxi ta’ pajjiżhom huma uħud mir-raġunijiet li wassluna sal-lista l-griża. Tul dawn l-aħħar xhur imma, l-Ministru tal-Fnanzi beda jċedi u jidher li issa mexjin lejn li naċċettaw rata minima u armonizzat ta’ taxxa.

Bħala partit ilna ninsitu fuq din it-triq. Sfortunatament b’wiċċna minn quddiem nistgħu ngħidu li ghidna ċar u tond kif kienu l-affarijiet. Issa jmiss li tispiċċa l-iskema tal-bejgħ tal-passaporti ukoll. M’għandniex bżonn li jkunu istituzzjonijiet barranin li jgħidulna x’inhu tajjeb u x’inhu ħażin. Kapaċi, jekk irridu, li dan nagħmluh aħna stess. 

Huma biss membri parlamentari eletti mill-lista tal-kandidati ta’ ADPD li jistgħu jassiguraw li jsir it-tibdil kollu li hu meħtieġ. Bernard Grech u l-PN ma jistgħux ikunu is-soluzzjoni. Huma parti mill-problema.

ippubblikat fuq Illum: il-Ħadd 20 ta’ Frar 2022

Golden passports & the EU’s loyalty principle

Earlier this week, the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs, when discussing a draft legislative initiative report emphasised that golden passports are objectionable ethically, legally and economically and pose several serious security risks.

Over the years government Ministers, in Malta and elsewhere, have emphasised that issues of citizenship and passports are a national reserved matter, within the European Union.  They are right, but, only to a certain extent. The principle of loyalty in the EU treaties underpins the functioning of the individual member states within the Union. Even the national competencies have to be implemented with this principle in mind.

No one contests that nationality issues are a national competence. They should remain so. There is however much more than state competence at stake. Article 4.3 of the Treaty on the European Union explain this as the principle of sincere cooperation, at times referred to as the loyalty principle: loyalty, that is, towards the other European member states.

Recently, the Robert Abela administration has sought to reform the process of acquiring citizenship by investment. The original rules were overhauled. The IIP (Individual Investor Programme) was replaced by a residency scheme which could, eventually lead to acquiring citizenship. The EU was informed of all this and Parliamentary Secretary Alex Muscat, responsible for citizenship has indicated that there has been no feedback on the matter from the EU Commission.

The EU Parliament will discuss the matter in plenary next month. The draft report which, with a multitude of amendments proposed, will be considered, emphasises among other matters that such Citizenship by Investment (CBI) “schemes tend to be located in Member States that are particularly prone to risks related to financial secrecy, such as tax avoidance and money laundering, and corruption.”

Among the new Maltese citizens by investment, one finds: Anatoly Hurgin, charged with fraud, smuggling and money laundering in the US and Israel, Liu Zhongtian, an aluminium billionaire indicted in the US on avoidance of €2 billion in American tariffs, Boris Mints, a billionaire facing fraud charges in the UK, Pavel Melnikov, another billionaire under investigation in Finland for money laundering and tax fraud and Mustafa Abdel-Wadood who pleaded guilty to conspiracy and fraud charges in the United States. These have been identified by the Maltese press. I would not exclude that there are more of them as such schemes are a natural attraction to them. So far they have avoided the radar of public scrutiny.

Quite a collection! All of them were okayed by Malta’s “rigorous due diligence”!

In view of the above, Bernard Grech’s postering through his refusal to engage in consultation on the appointment of a new regulator for golden citizenship sends a wrong message. A regulator acceptable to Bernard Grech will not make the citizenship by investment scheme any better.

The golden passport scheme, irrespective of the tinkering with the rules carried out, is unacceptable in principle. EU citizenship, says the EU Parliament report currently under consideration “is not a commodity that can be marketed or sold and has never been conceived as such by the Treaties.”

European values are not for sale, says the said report: “in the light of the particular risks posed by CBI schemes and their inherent incompatibility with the principle of sincere cooperation, CBI schemes should be phased out fully across the Member States”. The proposal before the EU Parliament is that these should be phased out by 2025.

The money justifies it, says Bernard Grech, if only it were more transparent. It is the same attitude which the PN-led government built into our taxation system, when it introduced measures encouraging tax avoidance.

The golden passport scheme coupled with the continuous abuse of Malta’s tax sovereignty through offering substantial tax discounts to foreign commercial entities, encouraging tax avoidance, are part of the reasons which have led to Malta’s grey-listing. During the last months, Malta’s Finance Minister has finally capitulated and he is now steering the country towards the acceptance of a harmonised minimum tax rate.

Greens have been advocating this course of action for ages. Unfortunately, we can hold our heads high and state: we told you so! The golden passport scheme should be next for the chop. We do not need foreign institutions to tell us what is right or wrong. We can do it ourselves.

Only members of parliament elected from the list of ADPD candidates can ensure that the required overhaul is carried out. Bernard Grech and his PN cannot be the solution. They are part of the problem.

published on The Malta Independent on Sunday : 20 February 2022