Fil-lista l-griża: wara snin ma jsir xejn dwar il-ħasil tal-flus

Ċertament li mhux ġust mal-Maltin li l-FATF (Financial Action Task Force) poġġiet lil Malta fuq il-lista l-griża.

Li dħalna fil-lista l-griża hu bla l-iċken dubju ħtija tal-Gvern. L-Opposizzjoni ukoll għandha terfa’ parti mit-tort u dan minħabba li fl-2013 ħalliet warajha istituzzjonijiet dgħajfa. B’istituzzjonijiet dgħajfa l-ħmieġ hu iffaċilitat.

Ilkoll għandna nkunu mnikktin bid-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lill-Malta fuq il-lista l-griża, minkejja li din id-deċiżjoni kienet mistennija.

Il-kelliema tal-Gvern, matul il-ġimgħa, kienu qed jenfasizzaw li ttieħdu ħafna deċiżjonijiet biex jissaħħaħ il-qafa regolatorju. Li ma qalulniex hu li dan sar wara bosta snin ta’ infurzar żero. Li għal snin sħaħ l-awtoritajiet regolatorji bħall-FIAU kellhom fosthom kollaboraturi ta’ kriminali magħrufa, bħal Silvio Valletta, eks-Deputat Kummissarju tal-Pulizija.

Kellna lill-grupp Parlamentari Laburista li irrifjuta li jikkundanna lil Konrad Mizzi u lil Keith Schembri għall-involviment tagħhom fl-iskandlu tal-Panama Papers. Ilkoll kemm huma ikkontribwew biex Malta ġiet inkluża fuq il-lista l-griża.

Tiftakru lil Varist Bartolo fuq Hard Talk jispjega għaliex ivvota favur Mizzi u Schembri? Kienet strateġija biex jissopravivi qalilna (strategy for survival) bit-tama li jkun għadu hemm meta tasal il-battalja li jmiss. Jew forsi tiftakru lill-Leo Brincat jispjega meta kien taħt skrutinju fil-Parlament Ewropew in konnessjoni man-nomina tiegħu għall-Qorti tal-Awdituri? Dakinnhar kien qalilna li ma jridx li jispiċċa eroj għal ġurnata biex imbgħad wara jispiċċa fil-baħħ!

Kellna lill-Kummissarju tal-Pulizija ma jinvestigax każijiet ta’ ħasil ta’ flus għal snin sħaħ. Huwa biss reċentement li Kummissarju tal-Pulizija l-ġdid għamel l-investigazzjonijiet u prosekuzzjonijiet possibbli.

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Sadanittant saret ħsara konsiderevoli. Il-kompliċità kriminali tal-Gvern f’dan kollu għamlet ħsara serja lill-ekonomija u lis-soċjetà. Huma dawk fil-livelli ta’ dħul aktar baxx li se iħossu l-biċċa l-kbira ta’ l-impatti negattivi ta’ dan kollu. Dawn jeħtieġu l-empatija tagħna. Dawn għandhom bżonn l-iktar protezzjoni f’dan il-mument.

Il-Gvern, bl-appoġġ tal-Oppożizzjoni, matul is-snin żviluppa “kunsens nazzjonali” dwar is-settur finanzjarju inkluż li jagħmilha possibbli li Malta tintuża bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-iskema tal-bejgħ taċ-ċittadinanza dan ikkontribwixxa aktar għat-tkissir tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni li tista’ tkun afdata.

Xi ħadd jiftakar iċ-ċirkustanzi li wasslu għar-riżenja ta’ Joseph Cuschieri, CEO tal-Awtorità tas-Serviżżi Finanzjarji (MFSA) wara li ż-żjara tiegħu f’Las Vegas ma Yorgen Fenech ġiet għall-attenzjoni pubblika? Il-vjaġġ kien iffinanzjat minn Yorgen Fenech meta Cuschieri kien għadu jmexxi l-Awtorità tal-Logħob li suppost kienet ir-regolatur tal-casino ta’ Yorgen Fenech.  B’regolaturi bħal dawn, kif jista’ jsir l-infurzar?

Dan l-isfreġju sħiħ fuq Malta kien immexxi direttament minn Joseph Muscat u Edward Scicluna, eks-Ministru tal-Finanzi li ġie ppremjat bil-ħatra tiegħu bħala Gvernatur tal-Bank Ċentrali. Muscat spiċċa. Scicluna għandu bżonn isegwih malajr. Huwa għandu jew jirriżenja jew jitkeċċa minnufih.

Huwa xieraq wkoll li nfakkru li dan it-taħwid kollu kien is-suġġett tal-ġurnaliżmu investigattiv ta’ Daphne Caruana Galizia li nqatlet għall-isforzi tagħha biex tinfurmana u tesponi l-elit kriminali. Intilfet il-ħajja ta’ mara, omm u ġurnalista.

Huwa essenzjali li tittieħed azzjoni immedjata biex tibda terġa’ tinbena r-reputazzjoni ta’ Malta. Dan għandu jinkludi r-revoka immedjata tal-iskema tal-bejgħ taċ-ċittadinanza u l-għeluq tal-lakuni legali li biddlu lil Malta f’bażi ta’ evazjoni tat-taxxa.

Ippubblikat fuq Illum : il-Ħadd 27 ta’ Ġunju 2021

Grey listing: after years of zero enforcement on money laundering

The grey listing announced earlier during the week as a result of a decision by the Financial Action Task Force (FATF) is definitely not fair on the Maltese people.

The grey list is government’s making. However, the opposition certainly has a finger in the pie too as it is ultimately responsible for the weak institutions which it left in place in 2013. These weak institutions facilitated the current mess.

We should all be saddened by the decision of the FATF (Financial Action Task Force) to have Malta on its grey list, even though this course of action was expected.  

Government spokespersons have been emphasising that a lot of regulatory sprucing and reinforcement has been taken in hand.  However, they did not tell us that this has been done after several years of zero enforcement. After years having regulatory authorities such as FIAU staffed by collaborators of known criminals, such as Silvio Valletta, former Deputy Commissioner of Police.

We have had all Labour MPs in Parliament refusing to condemn Konrad Mizzi and Keith Schembri when their Panama Papers involvement was made public. All of them have contributed to this grey listing. 

Do you remember Evarist Bartolo explaining on Hard Talk why he voted in favour of Mizzi and Schembri? He had a strategy for survival, hoping “to live and fight another day”. Or Leo Brincat’s explanation when being scrutinised by the EU Parliament Budgetary Control Committee prior to his appointment at the European Court of Auditors? Leo Brincat had than stated that he did not want to live as a hero for one day, to be subsequently condemned to the wilderness for the rest of his life!

We have had the Commissioner of Police not investigating money laundering cases for years on end. It is only recently that a new Police Commissioner has made investigations and prosecutions possible.

Unfortunately, the action against money laundering has been late in coming. Considerable damage has resulted in the meantime. Government criminal complicity in all this has seriously damaged the economy and society.  It is those in the lower income levels who will feel most of the impacts of all this. They need our empathy. It is they who need most protection at this point in time.

Government with the support of the opposition has over the years developed a “national consensus” on the financial sector including the setup which makes it possible for international tax evasion to make use of Malta as a base. Together with the sale of citizenship scheme this has further contributed to the erosion of Malta’s reputation as a trustworthy jurisdiction.

Anybody remembers the circumstances which led to the 2018 resignation of the MFSA (Malta Financial Services Authority) CEO Joseph Cuschieri following his Las Vegas trip with Yorgen Fenech becoming public knowledge? The trip had been financed by Fenech when Cuschieri was still the Gaming Authority Chief, supposedly regulating Yorgen Fenech’s casino!

All this mess was directed by Joseph Muscat and Edward Scicluna, former Finance Minister who has been rewarded for his endeavours by his appointment as Governor of the Central Bank. Muscat is gone. Scicluna, politically responsible for ensuring that money-laundering structures were functioning, needs to follow him at the earliest. He should either resign or be dismissed forthwith.

It is also pertinent to point out that all this was the subject of the investigative journalism of Daphne Caruana Galizia who was blown up for her efforts to inform us and expose the criminal elite. We have lost a life: a mother, a wife, a journalist.

Immediate action is essential to start rebuilding Malta’s reputation. This should include the immediate repeal of the sale of citizenship scheme and closing the legal loopholes which have transformed Malta into a tax haven.

published in The Malta Independent on Sunday: 27 June 2021

Il-lista l-griża: id-dmugħ tal-kukkudrilli ma jsolvi xejn

Id-dmugħ tal-kukkudrilli ma jsolvi xejn

Dalgħodu indirizzajt konferenza stampa dwar il-kundanna ta’ Malta għal-lista l-griża.

Il-pajjiż jeħtieġ tindifa sħiħa, li għadha ma saritx. Għall perjodu twil il-Gvern Malti injora l-kuxjenza nazzjonali f’Malta stess, inkluż kritika interna tal-fasla tas-sistema finanzjarja ta’ Malta u l-abbużi u l-involviment kriminali ta’ uffiċċjali għolja u ta’ xi politiċi. Kellu jistenna l-kritika tal-barranin biex jiċċaqlaq?

Ninsabu mnikktin bid-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lil Malta fuq il-lista l-griża tagħha, minkejja li din kienet mistennija. Imma ma kienx meħtieġ li jkunu l-istituzzjonijiet barranin li jiġbdulna widnejna li l-affarijiet f’Malta mhumiex mexjin sew.  Aħna stess ilna niġbdu l-attenzjoni li l-affarijiet mhux sejrin sew fis-sistema finanzjarja.

Huwa veru li matul l-aħħar xhur ittieħedu ħafna deċiżjonijiet biex jissaħħaħ il-qafas regolatorju kontra l-ħasil tal-flus u l-kriminalità organizzata. Il-problema però hi li mhux kulħadd hu konvint li dan sar b’konvinzjoni favur tmexxija b’integrità. Għad jeżisti dubju dwar jekk dak li sar hux biss reazzjoni għas-sensittivitajiet tal-komunità internazzjonali. Għax, sfortunatament, drajna wisq għal snin twal b’istituzzjoniiet li ma jaħdmux.

Li f’daqqa waħda l-pulizija bdiet tieħu passi f’kazijiet ta’ ħasil ta’ flus ma jħassarx il-fatt li għal snin sħaħ il-korp tal-Pulizija kien miżmum milli jaġixxi billi diversi uffiċjali tiegħu kienu fil-but tal-kriminali. Huwa dan li wassal biex għal snin twal kellna infurzar żero. Dak li sa ftit ilu kien biss suspett illum il-ġurnata hu konfermat bl-ismijiet li jaf bihom kulħadd.

Kellna lill-grupp Parlamentari Laburista li irrifjuta li jikkundanna lil Konrad Mizzi u lil Keith Schembri għall-involviment tagħhom fl-iskandlu tal-Panama Papers. Dakinhar il-Parlament messu ta messaġġ qawwi favur is-serjetà. Minflok imma, ħareġ messaġġ favur il-ħmieg.

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Laħqet saret ħsara konsiderevoli. Il-kompliċità kriminali tal-gvern u l-istituzzjonijiet imnawwra f’dan kollu għamlet ħsara serja lill-ekonomija u lis-soċjetà. Huma dawk fil-livelli ta’ dħul aktar baxx li se jħossu l-biċċa l-kbira ta’ l-impatti negattivi ta’ dan kollu. Dawn jeħtieġu l-empatija tagħna. Għandhom bżonn l-iktar protezzjoni f’dan il-mument.

Il-Gvern u l-Oppożizzjoni matul is-snin żviluppaw dak li jsejħu “kunsens nazzjonali” dwar is-settur finanzjarju li jagħmilha possibbli għall-użu ta’ Malta bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-bejgħ tal-iskema taċ-ċittadinanza dan ikkontribwixxa aktar għat-tkissir tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni li tista’ tkun fdata. Ir-reputazzjoni ħażina li sfortunatament għandha Malta illum fuq livell internazzjonali ma ġietx mix-xejn. Żviluppat bħala riżultat tal-fatt li l-Gvern naqas tul is-snin li jimxi sewwa. Il-messaġġ ċar li ngħata kien li l-Gvern kien jipproteġi l-kriminalità.

Il-kliem sabiħ li qed jingħad illum favur il-governanza tajba jikkuntrasta ma dak li ntqal tul is-snin passati. Il-Prim Ministru tal-lum Robert Abela dejjem enfasizza li l-Gvern immexxi minnu hu wieħed ta’ kontinwità. Wara kollox Robert Abela kien il-konsulent legali ta’ Joseph Muscat u sa ċertu punt irid jerfa’ ukoll ir-responsabbiltà politika għas-sitwazzjoni tal-lum.

Ir-responsabbiltà politika għall-qagħda attwali trid tintrefa ukoll mill-Professur Edward Scicluna eks-Ministru tal-Finanzi li kellu responsabbiltà politika dwar l-istituzzjonijiet li suppost ħadmu kontra l-ħasil tal-flus. Huwa stess preżentement hu soġġett għal investigazzjoni kriminali. Imma flok ma mar jistaħba ngħata premju  għal dak li għamel billi nħatar Gvernatur tal-Bank Ċentrali.

Ħatriet ta’ din ix-xorta jagħtu messaġġ ċar: li ma hawnx serjetà fit-tmexxija tal-pajjiż. Ikun aħjar jekk flok id-dmugħ tal-kukkudrilli dwar dak li qed jiġri issir tindifa sħiħa. Tindifa meħtieġa b’urgenza li s’issa għadha ma saritx.

Il-lista l-griża: x’tistenna wara snin ta’ żero infurzar?

Fi stqarrija wara d-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lil Malta fuq il-lista l-griża tagħha, iċ-Chairperson ta’ ADPD Carmel Cacopardo qal:

“Ninsabu mnikktin bid-deċiżjoni, minkejja li din kienet mistennija.

Matul il-ġimgħa li għaddiet, il-kelliema tal-Gvern kienu qed jenfasizzaw li ttieħedu ħafna deċiżjonijiet biex jissaħħaħ il-qafa regolatorju. Li ma qalulniex hu li dan sar wara bosta snin ta’ infurzar żero. Li għal snin sħaħ l-awtoritajiet regolatorji bħall-FIAU kellhom fosthom kollaboraturi ta’ kriminali magħrufa bħal Silvio Valletta, eks-Deputat Kummissarju tal-Pulizija.

Kellna lill-grupp Parlamentari Laburista li irrifjuta li jikkundanna lil Konrad Mizzi u lil Keith Schembri għall-involviment tagħhom fl-iskandlu tal-Panama Papers.

Kellna lill-Kummissarju tal-Pulizija jirrifjuta li jinvestiga każijiet ta’ ħasil ta’ flus għal snin sħaħ. Huwa reċentement li Kummissarju tal-Pulizija ġdid għamel l-investigazzjonijiet u prosekuzzjonijiet possibbli.

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Saret ħsara konsiderevoli. Il-kompliċità kriminali tal-gvern f’dan kollu għamlet ħsara serja lill-ekonomija u lis-soċjetà. Huma dawk fil-livelli ta’ dħul aktar baxx li se jħossu l-biċċa l-kbira ta’ l-impatti negattivi ta’ dan kollu. Dawn jeħtieġu l-empatija tagħna. Dawn għandhom bżonn l-iktar protezzjoni f’dan il-mument.

Il-Gvern bl-appoġġ tal-Oppożizzjoni matul is-snin żviluppa kunsens nazzjonali dwar is-settur finanzjarju inkluż is-setup li jagħmilha possibbli għall-użu ta’ Malta bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-bejgħ tal-iskema taċ-ċittadinanza dan ikkontribwixxa aktar għall-erożjoni tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni affidabbli.

Dan l-isfreġju sħiħ fuq Malta kien immexxi direttament minn Joseph Muscat u Edward Scicluna, eks-Ministru tal-Finanzi li ġie ppremjat bil-ħatra tiegħu bħala Gvernatur tal-Bank Ċentrali. Muscat spiċċa. Scicluna għandu bżonn isegwih malajr. Huwa għandu jew jirriżenja jew jitkeċċa minnufih.

Huwa pertinenti wkoll li nfakkru li dan it-taħwid kollu kien is-suġġett tal-ġurnaliżmu investigattiv ta’ Daphne Caruana Galizia li nqatlet għall-isforzi tagħha biex tinfurmana u tesponi l-elit kriminali. Tlifna ħajja ta’ mara, omm u ġurnalista.

Huwa essenzjali li tittieħed azzjoni immedjata biex tibda terġa’ tinbena r-reputazzjoni ta’ Malta. Dan għandu jinkludi r-revoka immedjata tal-iskema tal-bejgħ taċ-ċittadinanza u l-għeluq tal-lakuni legali li biddlu lil Malta f’bażi ta’ evazjoni tat-taxxa.”

Riħa ta’ ħut

Bħala mexxej ta’ partit politiku jiena meqjus persuna esposta politikament (politically exposed person – PEP) skond kif tipprovdi ir-Raba’ Direttiva tal-Unjoni Ewropeja kontra l-ħasil tal-flus, hekk kif din ġiet trasposta fil-liġi Maltija. Anke membri tal-familja immedjata tiegħi huma kkunsidrati bl-istess mod. Politiċi oħra flimkien mal-familja tagħhom huma fl-istess qagħda.

Hu meqjus li l-persuni esposti politikament  (PEPs), minħabba l-posizzjoni li jokkupaw, huma f’riskju ikbar ta’ involviment fil-ħasil tal-flus. Ma hemm l-ebda distinzjoni bejn dawk li għandhom u jeżerċitaw il-poter eżekuttiv u dawk li ma għandhom xejn minn dan. Jiena wieħed minn tal-aħħar!  

It-talbiet għall-informazzjoni, xi minn daqqiet repetittivi u bla ħtieġa, li jiena u diversi membri tal-familja nirċievu idejquk, avolja nifhem il-ħtieġa tagħhom kieku kellhom isiru bil-galbu.   L-uffiċjali tal-bank bosta drabi juru entużjażmu esaġerat mal-ħuta ż-żgħira biex imbagħad ma jagħtu każ ta’ xejn, jew kważi, meta titfaċċa l-ħuta l-kbira.  

Mhuwiex aċċettabbli li waqt li jissorveljaw b’żelu u entużjażmu esaġerat lil dawk li huma ta’ riskju żgħir, imbagħad, lil dawk li mhux biss huma ta’ riskju imma li fil-fatt jabbużaw kontinwament, dawn jibqgħu għaddejjin qiesu qatt ma kien xejn. Dawn jirnexxielhom jiżgiċċaw għax ikollhom min jgħinhom eżatt fil-waqt u l-post meħtieġ. Verament każ tal-ħabib fis-suq li hu ferm aħjar mill-flus fis-senduq!

L-aħħar każ ippresentat il-Qorti dwar il-ħasil tal-flus jeħodna minn restorant tal-ħut sal-bank u lura. Il-mixja ta’ tiftix tal-allegat ħasil tal-flus wasslet lill-pulizija investigattiva sa restorant tal-ħut f’Marsaxlokk u ieħor ġol-Belt Valletta. Din l-investigazzjoni tidher li hi konnessa ma każ ieħor ewlieni dwar allegat ħasil tal-flus: dak konness mal-kuntrabandu tad-diesel mil-Libja.

Wieħed mill-persuni li presentment għaddej proċeduri kriminali fil-passat kien uffiċjal ta’ bank. Illum hu irtirat, kif fakkarna l-bank stess wara li dan ttella’ l-Qorti.

Il-punt importanti hu dwar il-konnessjoni li qed jingħad li kien hemm bejn ir-ristoranti tal-ħut u l-bank.  Fil-fatt, il-medja, hi u tirrapporta x-xhieda li nstemgħet waqt l-ewwel seduta tal-proċeduri kriminali, irrappurtat li l-uffiċjal prosekutur, huwa u jispjega kif żvolġiet l-investigazzjoni qal li dan l-ex-impjegat tal-bank, meta kien għadu fl-impieg bħala uffiċjal tat-taqsima tal-bank li tieħu ħsieb il-ħidma tal-kumpaniji allegatament kien ta’ għajnuna fil-ħidma tal-ħasil ta’ flus taħt investigazzjoni. Qed ikun suġġerit li din l-għajnuna serviet biex tinsatar il-ħidma ta’ dawk li allegatament kienu qed jaħslu l-flus.  

Dan l-uffiċjal tal-bank illum m’għadux impjegat mal-bank. Sadanittant ħa promozzjoni u issa qed jieħu ħsieb il-kumpaniji fejn allegatament jinħaslu l-flus.

Xi rwol għandha l-MFSA (L-Awtorità Maltija dwar is-Servizzi Finanzjarji) f’dan kollu? Waqt li kienet għaddejja din il-biċċa xogħol l-uffiċjal ewlieni (CEO) tal-MFSA kien għaddej minn perjodu ta’ kollaborazzjoni ma’ Yorgen Fenech, li presentment għaddej proċeduri kriminali fil-Qrati Maltin bl-akkuża li kien il-moħħ wara l-qtil ta’ Daphne Caruana Galizia u huwa meħtieġ ukoll li jidher fi Sqallija dwar skandlu ieħor, din id-darba dwar logħob tal-azzard illegali kif ukoll dwar tbagħbis ta’ logħob.  

X’monitoraġġ jagħmlu l-MFSA u l-FIAU (Financial Intelligence Analysis Unit) biex jassiguraw li l-banek iwettqu sewwa l-obbligi tagħhom konnessi mal-ħasil tal-flus?

L-akkużi li ippreżentaw il-pulizija din il-ġimgħa jindikaw li dan il-moniteraġġ, jekk jeżisti, huwa dgħajjef u ineffettiv ħafna.

L-uffiċjal tal-bank issa bidel l-impieg. Minn ħidma regolatorja fil-bank issa għadda biex allegatament jieħu ħsieb il-ħasil tal-flus ġejjin mill-kuntrabandu tad-diesel Libjan. Din hi l-konklużjoni loġika li toħroġ mill-akkużi tal-Puliizja din il-ġimgħa dwar l-użu tar-ristoranti tal-ħut fil-Belt Valletta u Marsaxlokk bħala allegati għodda tal-ħasil tal-flus.

Kieku l-MFSA ul-FIAU ħadmu sewwa dan kollu ma kienx ikun possibli li jseħħ.  Hu każ ċar fejn l-industrija tal-ħasil tal-flus qed timpjega lin-nies li ġejjin mill-awtoritajiet regolatorji. Affarijiet li qed iseħħu fid-dawl tax-xemx mingħajr ħadd ma jinduna jew jagħti każ.  

L-istituzzjonijiet qed jaħdmu għax jidher li t-taħwid qed jikber bil-minuti? Wieħed jittama li l-MFSA u l-FIAU jieħdu azzjoni deċiżiva, u din id-darba b’urġenza.

ippubblikat fuq Illum : il-Ħadd 18 t’April 2021

Fishy Business

As the leader of a political party, I am considered as a politically exposed person (PEP) in line with the provisions of EU 4th Anti-Money Laundering Directive as transposed into Maltese law. Even members of my immediate family are so considered. Other politicians and their families are in a similar position.

It is held that politically exposed persons (PEPs), by virtue of the position they hold present a higher risk for involvement in money-laundering. There is no practical distinction between PEPs who exercise executive authority and those who have none of it, as yours truly!

The unnecessary, at times repetitive, queries from banks which I and various members of my family receive, are at times very annoying, even though I understand their scope and need if they were to carried out appropriately.  At times however, bank officials are overzealous with small fry, and then look sideways when facing the big fish.

It is unacceptable that while monitoring of persons who pose a minor and insignificant risk for involvement in money-laundering is done (at times), with exaggerated zeal, yet those who not only pose a risk, but actually do it manage to avoid any sort of detection by having the right friends at the right places assisting them in meticulously piloting the waters.

The latest money laundering cases in court this week take us from the fish restaurant to the bank and back again. Investigating the money-laundering trail took the police investigators to Marsaxlokk and Valletta fish restaurants. This investigation is apparently linked to another major money-laundering case: the laundering of monies allegedly resulting from the Libyan diesel smuggling operation.

One of the persons arraigned is a former bank official. He is now retired, as emphasised, after the arraignment, by his former employer the bank.

The point at issue is the trail between the fish restaurant and the bank. In fact, reporting on the testimony at the first sitting in the criminal courts the media emphasised that the prosecuting officer, in explaining the background to the investigation carried out, stated that the former bank official, when still in employment as an official of the bank’s corporate banking unit, had allegedly been of assistance in the money laundering operation currently under review. It has been suggested that such assistance helped the alleged money launderers to avoid detection for quite some time.

The former bank official is no longer in the bank’s employment. In the meantime, he had taken a promotion and is now on the books of the alleged money launderer, a Director of his various companies.

What is the role of the MFSA (Malta Financial Services Authority) in all this? This operation was in motion at the time when the Chief Executive Officer of the MFSA was in cahoots with Yorgen Fenech, currently under the criminal spotlight himself, accused with masterminding the assassination of Daphne Caruana Galizia in the Maltese Courts and simultaneously wanted in Sicily as part of a match fixing and illegal betting scandal.

What monitoring do the MFSA and the FIAU (Financial Intelligence Analysis Unit) carry out to ensure that the banks perform their money-laundering regulatory functions diligently?

This week’s police charge sheet seems to indicate that any such monitoring, if at all existent, was very weak and for all intents and purposes ineffective.

The bank official changed his job and moved on from his bank regulatory duties to allegedly managing the laundering of monies generated from the Libyan diesel smuggling operation. This is the logical conclusion drawn from the police charge sheet presented this week on the alleged use of the fish restaurants at Valletta and Marsaxlokk as money-laundering tools.

If the MFSA and FIAU had carried out their duties properly this would not have been possible. This is a clear case where the revolving door recruitment from the regulatory authorities to the money-laundering industry operated under the very noses of the regulatory authorities themselves with no one noticing or bothering about it.

Are the institutions really functioning, as the mess gets bigger every day?

Hopefully the MFSA and the FIAU take decisive action, urgently, for a change.

published in The Malta Independent on Sunday – 18 April 2021

Bank officials and the revolving door

The money laundering criminal case instituted this morning relative to the possible use of a number of restaurants in the scam is another milestone for the Malta Police.

It is however very worrying as it shows the “revolving door” recruitment with ease which former bank officials use from their regulatory role in the bank to an operational role in the companies they should have kept a watch over. The question which begs an answer is whether the “revolving door” recruitment is payment for services rendered.

It is another lacuna which needs decisive action the soonest. Regulating “revolving door” recruitment is not just an issue for politicians.

Hopefully the Malta Financial Services Authority (MFSA) takes decisive action urgently.

Meta l-istat jinkoraġixxi l-evażjoni tat-taxxa

F’indirizz li għamlet nhar it-Tnejn liċ-Chicago Council on Global Affairs, Janet Yellen, Segretarju għat-Teżor tal-Istati Uniti, ippreżentat l-argument favur taxxa minima applikabbli għall-korporazzjonijiet multinazzjonali fuq livell globali, irrispettivament minn fejn huma bbażati.  Proposta ta’ din ix-xorta, kif rappurtat min-New York Times, ikollha s-saħħa li żżomm lil dawn il-kumpaniji milli jċaqilqu l-profitti tagħħom minn post għall-ieħor biex jevadu l-ħlas tat-taxxi dovuti minnhom.

Meta jitnaqqsu it-taxxi biex tinġbed l-industrija u n-negozju, emfasizzat  Ms Yellen, hemm is-sogru li mmissu l-qiegħ: fejn ser tieqaf? Ma nistgħux nibqgħu sejrin hekk. Il-kompetittività mhiex biss kif kumpanija tmur fil-konfront ta’ kumpaniji oħra.  Hi ukoll il-mod li bih nassiguraw  li l-gvernijiet ikollhom sistemi ta’ ġbir ta’ taxxa li jkunu stabbli b’mod li jistgħu jiġbru biżżejjed fondi x’jinvestu f’servizzi publiċi u jkunu f’posizzjoni li jirreaġixxu fi żmien ta’ kriżi. Hu meħtieġ li ċ-ċittadini bejniethom jerfgħu b’mod ġust il-piż tal-finanzjament tal-gvern.”

Din il-materja hi diġa fuq l-agenda tal-Unjoni Ewropeja. Hi opposta b’qawwa minn Malta, il-Lussimburgu, l-Irlanda u pajjiżi oħrajn.  L-argument dwar l-armonizzazzjoni tat-tassazzjoni hu parti integrali mill-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus.

Hu ta’ sfortuna li Malta (u pajjiżi oħrajn) repetutament abbużat mis-sovranità tagħha fuq materji ta’ taxxa. Huwa riżultat ta’ dan l-abbuż repetut li l-proposta dwar l-armonizzazzjoni tat-taxxa qabdet l-art b’mod li issa hi appoġġata ukoll mill-Istati Uniti tal-Amerka.  Malta rmiet il-vantaġġ kompetittiv tagħha billi abbużat minnu repetutament. Il-ħsara lir-reputazzjoni tal-pajjiż hi għaldaqstant awto-gol mill-kbar.

Malta ma tistax tkun kredibbli fil-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jekk ser tibqa’ tiffaċilita l-evażjoni tat-taxxa fuq skala internazzjonali.  Xi snin ilu il-Grupp tal-Ħodor fil-Parlament Ewropew kien ippubblika studju intitolat Toxic Tax deals: when BASF’s tax structure is more about style than substance. Dan ir-rapport kien svela kif tul is -snin, il-kumpanija Ġermaniża ġgant tal-kimika BASF kien irnexxielha tevita u tiffranka l-ħlas ta’ biljun euro f’taxxi fuq 4 snin billi użat lill-Malta għal dan l-iskop. Dan sar billi kumpanija sussidjarja ġiet reġistrata f’Malta u t-taxxi dovuti, għax l-azzjonisti mhux residenti f’Malta, ħadu lura 6 euros minn kull 7 li kellhom iħallsu f’taxxa!

Il-każ tal-Korporazzjoni Amerikana Apple fl-Irlanda, kif nafu, wassal għall-evażjoni ta’ 13-il biljun euro f’taxxi. L-iskandlu Luxleaks fil-Lussimburgu ukoll wera kif dan il-pajjiż żgħir fost il-fundaturi tal-Unjoni Ewropeja ukoll kien qed jinkoraġixxi l-evażjoni tat-taxxa.

Dawn huma ftit mill-eżempji. Bla dubju hemm bosta oħra li s’issa huma moħbija mill-iskrutinju pubbliku. Bħala riżultat ta’ dan kollu madwarna għaddejja evażjoni ta’ biljuni ta’ euro ta’ taxxi, kontinwament. Malta, l-Irlanda, il-Lussimburgu u xi pajjiżi oħra jiġbru parti żgħira mit-taxxi dovuti bħala ħlas talli jippermettu din l-evażjoni ta’ taxxa fuq skala pjuttost kbira.

F’Malta dan kollu kien possibli bħala riżultant tal-hekk imsejjaħ “kunsens nazzjonali” bejn il-PLPN dwar il-qasam finanzjarju. “Kunsens” li ilu fis-seħħ numru ta’ snin. Il-ħsara lir-reputazzjoni ta’ Malta li seħħet u għad qed isseħħ bħala riżultat ta’ dan kollu, għaldaqstant, ma jġorriex il-Partit Laburista waħdu. Il-Partit Nazzjonalista ukoll għandu resposabbiltà xi jġorr. Għalhekk fuq dawn il-materji in-Nazzjonalisti u l-Labour dejjem iħokku dahar xulxin.  

Sfortunatament l-evażjoni tat-taxxa u l-ħasil tal-flus huma ħafna drabi konnessi. Bosta drabi fejn issib waħda issib l-oħra ukoll.

It-triq il-quddiem m’għandiex ikollha impatt fuq is-sovranità fil-qasam tat-tassazzjoni kif determinat mit-trattati Ewropej permezz tal-ħtieġa tal-unanimità f’materji konnessi mat-taxxa. Imma hemm bżonn urġenti li l-qasam tal-politika fiskali ukoll jinbena fuq prinċipji etiċi b’saħħithom. U mhux dan biss. Għandu jkun assigurat darba għal dejjem li Malta ma tibqax tiddependi minn dħul ġej mill-evażjoni tat-taxxa.

Għax id-dipendenza tal-ekonomija Maltija fuq l-evażjoni tat-taxxa (u l-bejgħ tal-passaporti) hi ta’ inkwiet kbir għall-pajjiż. L-industrija tal-evażjoni tat-taxxa hi sors ta’ dħul kif ukoll ta’ impiegi li it-tnejn li huma inevitabilment jintilfu fi żmien qasir. Wasal iż-żmien li nippjanaw għal futur nadif, futur li mhux iktar dipendenti fuq l-evażjoni tat-taxxa.

Ippubblikat fuq Illum: il-Ħadd 11 t’April 2021

When the state encourages tax evasion

In a speech delivered on Monday to the Chicago Council on Global Affairs, Janet Yellen, US Treasury Secretary, made the case for a global minimum tax applicable to multinational corporations irrespective of where they locate their headquarters. Such a proposal, reported the New York Times, would prevent companies from shifting profits to evade taxes.

Lowering tax rates to attract business, emphasised Ms Yellen, is a race to the bottom which has to be addressed. Competitiveness is not just how companies fare against other companies. It is also about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crisis, and that all citizens fairly share the burden of financing government.

This issue is already on the agenda of the EU facing fierce opposition from Malta, Luxembourg, Ireland as well as others. The issue of tax harmonisation is an integral part of the fight against tax evasion and money laundering.

It is unfortunate that Malta (and others) have been repeatedly abusing its tax sovereignty. It is as a result of such repeated abuse that the proposal for tax harmonisation is gaining ground such that it now has the support of the United States of America too. As a result of greed Malta has squandered a competitive advantage by abusing it repeatedly and continuously. The resulting reputational damage is hence an own goal.

Malta (and the other countries) cannot be credible in the declared fight against tax evasion and money laundering if it keeps facilitating tax avoidance on an international scale. Some years back the Green Group in the European Parliament had published a study entitled Toxic Tax deals: when BASF’s tax structure is more about style than substance. This report reveals that over the years, the German chemical giant BASF used Malta to avoid the payment of one billion euros in taxes. This was done using the “legal” possibility to have tax refunds of up to six sevenths of the tax due in such cases where shareholders are not resident in the Maltese islands. Tax avoidance is tax evasion sanctioned by the state.

The Apple Corporation case in Ireland as a result of which another €13 billion in taxes were avoided is another example of tax evasion sanctioned by the state of Ireland. Luxleaks had also revealed countless of other examples as a result of which Luxembourg too embarked on state encouraged tax-evasion.

These are just some examples of many: the proverbial tip of the iceberg. There are undoubtedly countless of others, currently below the radar of public scrutiny, as a result of which the payment of billions of euros in taxes are being continuously avoided. Malta, Ireland, Luxembourg and other countries receive a small part of the actual tax due as a result of facilitating this state encouraged tax evasion.

Locally this scam is the result of the PNPL “national consensus” on financial institutions and fiscal policy in force for a number of years in Malta. The responsibility for the resulting reputational damage is thus not one to be shouldered by the Labour Party on its own, it has help from the PN which has continuously buttressed this abusive behaviour.

Unfortunately, tax evasion and money-laundering are inseparable twins!

The way forward need not impact the tax sovereignty afforded by the EU treaties through the unanimity rule on taxation issues. However, it necessitates ensuring that policy on all fiscal issues is also founded on sound ethical principles.

In addition to ensuring that fiscal policy is not in any way unethical it is about time that Malta does not any more, in any way, depend on tax avoidance.

The dependence of Malta’s economy on tax avoidance (and the sale of citizenship) is very worrying. The tax avoidance industry is a source of both revenue to the state and employment opportunities, both of which will be lost in the not-so-distant future. It is about time that we start planning for a cleaner future, a future that is, which is not dependent on the tax avoidance industry!

Published in the Malta Independent on Sunday : 11 April 2021

It-taħwid fl-Awtorità tal-Ippjanar

Qatt ħsibt ftit dwar kif inhu possibli li r-regolatur tal-ippjanar tal-użu tal-art f’Malta jinsab fl-istat ta’ taħwid li qiegħed? Ħarsu ftit lejn il-proċeduri kriminali li għaddejjin bħalissa dwar il-ħasil tal-flus. Wieħed mill-akkużati hu Matthew Pace li sa ftit ilu kien membru tal-Bord tal-Awtorità tal-Ippjanar. Spettur tal-Pulizija li kien qed jixhed fil-każ iddeskrivieh bħala professjonist tal-ħasil tal-flus:  a professional money launderer.

Ftit jiftakru li f’Ġunju 2018 kellna aħbar li l-FIAU (Financial Intelligence Analysis Unit) kienet immultat lil  Matthew Pace is-somma ta’ €38,750 minħabba li ma segwiex il-liġijiet kontra l-ħasil tal-flus meta kien qed jieħu ħsieb l-investimenti tal-klijent tiegħu Keith Schembri. Dan kien fatt magħruf. Mid-dehra l-Gvern kien kuntent bih, għax ma għamel xejn dwaru. Qiesu ma ġara xejn.

Ikun interessanti nkunu nafu jekk il-konsulent legali tal-Awtorità tal-Ippjanar, ċertu Dr Robert Abela, ġibitx l-attenzjoni tal-Awtorità dwar il-ħtieġa li taġixxi dwar dan. Jekk le, forsi l-istess Dr Robert Abela bħala l-konsulent legali ta’ Joseph Muscat ġibidlu l-attenzjoni dwar dan? Ma smajna xejn dwar dan kollu.  ilkoll kompromessi. Governanza tajba? U mhux hekk tgħid.

Matthew Pace għamel snin membru tal-Bord tal-Awtorità tal-Ippjanar. Kien biss wara l-każ ċar ta’ kunflitt ta’interess tiegħu  fil-każ tal-applikazzjoni ta’żvilupp mill-Grupp dB f’Pembroke li kien sfurzat jirreżenja u dan wara pressjoni pubblika minn ambjentalisti. Ngħid li kien “sfurzat” għax wara li l-Qorti annullat il-permess mogħti lill-Grupp dB fuq il-kunflitt ta’ interess ta’ Matthew Pace hu kien għall-ewwel irrifjuta li jwarrab. Kien ippruvat li huwa ħa sehem fil-laqgħat li wasslu għal deċiżjoni dwar il-permess tad-dB f’Pembroke, u ivvota favur din l-applikazzjoni.  Fl-istess ħin kellu interess f’aġenzija tal-propjetà li kienet qed tbiegħ  partijiet minn dan l-iżvilupp sa minn qabel mal-Bord tal-Awtorità tal-Ippjanar, bil-vot tiegħu stess favur, approva din l-applikazzjoni! Dik governanza tajba. Dik imġieba korretta!

Din hi l-Awtorità tal-Ippjanar. Sfortunatament il-membri l-oħra tal-Bord huma ukoll effettwati minħabba l-assoċjazzjoni tagħhom miegħu.  Iridu jgħaddu snin kbar qabel mar-regulatur jirkupra minn dan.

Imma hemm iktar minn hekk.

Ambjentalisti skoprew, kważi b’kumbinazzjoni, li c-Chairman attwali tat-Tribunal ta’ Reviżjoni dwar l-Ambjent u l-Ippjanar  (EPRT) li jisma’ appelli dwar każijiet ta’ ippjanar tal-użu tal-art u oħrajn dwar l-ambjent huwa ukoll impjegat tal-Awtorità tal-Ippjanar.  Presentement qiegħed b’leave bla ħlas mill-impjieg normali tiegħu mal-Awtorità tal-Ippjanar bid-dritt li jmur lura għall-impieg normali tiegħu hekk kif tintemm il-ħatra tiegħu bħala Chairperson tat-Tribunal.  

Kif jista’ impjegat tal-Awtorità tal-Ippjanar jikkunsidra appelli minn deċiżjonijiet li jieħu min jimpjegah? Dan imma hu dak li jagħmel kuljum ic-Chairman tal-EPRT.  L-anqas jekk jipprova ma qatt jista’ jkun imparzjali. Imma meta inġibditlu l-attenzjoni dwar dan ma qabilx li s-sitwazzjoni partikolari tiegħu titfa dell fuq l-imparzjalità tiegħu meta jiddeċiedi dwar kazijiet tal-ippjanar dwar l-użu tal-art. Fl-aħħar ser tkun il-Qorti li jkollha tiddeċiedi u l-ħsara li tkun saret sadanittant ser tkun waħda kbira.

It-taħwid, kif qed taraw, hu kbir. B’dawn in-nuqqasijiet etiċi ħadd m’għandu jiskanta li l-proċess dwar l-użu ta’ l-art tilef kull kredibilità.