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.  

A mess by design

Did you ever wonder why it is possible for the land use planning regulator in Malta to be in such a mess? Just take a look at the criminal proceedings currently under way on money laundering. A former Planning Authority Board member, Matthew Pace, is one of the accused. A police inspector, explaining the investigation results has described him as a professional money launderer.

Few may remember that, way back in June 2018, an item in the news had announced that the Financial Intelligence Analysis Unit (FIAU) had fined Matthew Pace the sum of €38,750 for breaching a number of anti-money laundering laws when dealing with investments held by a client of his named Keith Schembri. It was public knowledge and government was apparently happy as it did not act about it.

It would be interesting to know if the then legal advisor of the Planning Authority, a certain Dr Robert Abela, had flagged the issue and drawn the attention of the Authority on the need to take action. If not, could the legal advisor to Joseph Muscat, the same Dr Robert Abela, have drawn attention of his then boss to the matter? We have heard nothing about it. As we are by now aware, they are all compromised. Good governance my foot!

Mr Matthew Pace spent years as a member of the Planning Authority Board and it was only after his blatant case of conflict of interest in the dB Pembroke case that he was forced to resign as a result of public pressures by environmentalists. I say he was “forced to resign” as, when the Court annulled the dB Pembroke permit on the basis of Matthew Pace’s conflict of interest, he initially refused to make way. It was proven that he sat in judgement and participated in the decision on the dB Pembroke permit, voting in favour of its approval. Simultaneously he had an interest in an estate agency which was already “selling” units forming part of the dB Pembroke development even before the development permit was approved by the Planning Board with Matthew Pace’s vote in favour! Governance at its best!

This is the Planning Authority. Unfortunately, the other members of the Board are impacted by association. It will be many years before this regulator recovers.

There is more.

Environmentalists have discovered, almost by accident, that the current Chairman of the Environment and Planning Review Tribunal (EPRT) while sitting in judgement on appeal cases concerning planning and environmental issues is still an employee of the Planning Authority. He is currently on leave without pay having the right to return to his employment with the Planning Authority when his current term as Chairman of the EPRT expires.

How can an employee of the Planning Authority sit in judgement on the decisions of his employer? Yet this is what the Chairman of the EPRT does every day. He cannot by any stretch of the imagination be impartial even if he tries his very best. Yet whenever he was challenged, he has refused to accept that his specific circumstances render him unsuitable to Chair the EPRT in all cases concerning the Planning Authority. This matter will eventually have to be decided by the Courts with possible considerable consequences.

The mess gets worse every day.

With these ethical failures it is no wonder that the credibility of the land use planning process has gone to the dogs.

published in The Malta Independent on Sunday: 28 March 2021

Keith Schembri u l-kaxxi vojta: frodi, korruzzjoni u ħasil ta’ flus

Mela Keith Schembri u 10 persuni oħra, kif ukoll għoxrin kumpanija ittellgħu l-Qorti ftit tal- ħin ilu. Huma akkużati bi frodi, korruzzjoni, ħasil ta’ flus u iktar.

Dan li qed iseħħ illum huwa prova li l-istituzzjonijiet ma ħadmux kif kellhom jaħdmu. Għax kellom ikunu l-kaxxi “vojta” ta’ Simon Busuttil, li wara li saret investigazzjoni dwarhom mill-Maġistrat wasslu għall-passi tal-lum.

Illum hu jum ta’ niket. Jum ta’ għajb.

Dak li kien “in-number one” ta’ Malta hu akkużat li hu maħmuġ. Miegħu hemm oħrajn fosthom persuna li l-Gvern kien appuntah bħala membru tal-Bord tal-Awtorità tal-Ippjanar (Matthew Pace) li kellu jirreżenja għax inqabad b’kunflitt ta’interess: waqt li kien qed jivvuta favur il-permess tal-proġett tad-dB f’Pembroke kien diġa qed ibiegħ l-appartamenti permezz tal-aġenzija tal-propjetà li kellu sehem fiha.

Jum tal-mistħija għax tal-lum hi biċċa prova li l-Gvern ta’ Malta kien immexxi mill-ħmieġ.

X’serjiġri minn issa l-quddiem diffiċli tgħid. Li l-affarijiet waslu sa hawn hu pass importanti għas saltna tad-dritt.

Min imiss?

Some reflections on the Mafia State

Reading through the terms of reference for the Public Inquiry into the assassination of Daphne Caruana Galizia, it is amply clear to all as to what the inquiry should be aiming at.

The inquiry’s objective is to determine whether the machinery of government functioned as it should. Did it function in the public interest, or did it function in another manner, in the interest of the few, thereby creating a culture of impunity for the said few?

Some may justifiably argue that the machinery of government, in Malta, never functioned properly. It is further argued that the post 2013 administration made use of a defective machinery of government more efficiently than previous administrations, fine tuning and intensifying political controls in the process, as a result of which the stultification of the functions of the democratic state was accelerated.

The terms of reference agreed to in December 2019 speak of the development of a “de facto state of impunity” and seek to determine whether this could have been avoided through effective criminal law provisions, if such provisions exist.

Do we have a Mafia State? We would definitely have a Mafia State if the machinery of government is tied with organised crime to the extent that state officials become part of a criminal partnership or organisation.

The testimony heard so far in open session during the proceedings of the public inquiry reveals the reluctance of the authorities to investigate thereby paving the way for the development of a culture of impunity. Money-laundering investigations moved at snail’s pace until there was a change in leadership at the Economic Crimes Unit of the Malta Police Force. However, as yet we do not know what was revealed in the testimony behind closed doors. Matters could be considerably worse than what is known so far.

The revelations at the public inquiry must not be seen in isolation. They must be viewed in context of the testimony in the Magistrates Court relative to the criminal proceedings against those accused of carrying out the assassination of Daphne Caruana Galizia, or of masterminding it.

We have learnt that the alleged master-mind has pleaded with the police that he was carrying out the instructions of the Chief of Staff at the Office of the Prime Minister, Keith Schembri, who categorically denied this. The definite truth is not known yet. So far, we are only sure that the assassination planners were too close to the political nerve centre: just like in a Mafia State. It is at the Office of the Prime Minister that the middleman was offered a government job, one which delivered pay for no work. Part payment for his endeavours as a middleman!

The Ministers testifying at the public inquiry were continuously seeking to pass the buck from the Cabinet to the kitchen cabinet. On the other hand, those forming part of this kitchen cabinet feigned ignorance of their role in circumventing the role of the real cabinet. This is the worrying state of play in which those having responsibility take a step backwards as a result of which their authority ends being wielded by those appointed in lieu of those elected. Collective responsibility has been thrown to the winds.

The latest revelations crown it all. Government’s thinly veiled threats in the past days to the members of the judiciary directing the public inquiry reveal a government in panic mode.

Robert Abela’s unease at this point in time is understandable. After all he was former Prime Minister Joseph Muscat’s legal advisor. How many skeletons in the cupboard is he aware of?

published in The Malta Independent on Sunday: 20 December 2020

Is-sovranità tagħna mhiex għall-bejgħ

Hawn sinjali u indikazzjonijiet konfliġġenti dwar x’inhu għaddej bejn Malta u l-Istati Uniti tal-Amerika fuq negozjati dwar kundizzjonijiet li jirregolaw il-presenza ta’ militari Amerikani fuq teritorju Malti. Dak li hu magħruf bħala  Status of Forces Agreement (SOFA). Il-presenza f’Malta tas-Segretarju tad-Difiża Amerikan  Mark Esper iktar kmieni din il-ġimgħa jindika mhux biss li t-taħdidiet huma għaddejjin, imma fuq kollox li huma fi stadju kritiku. Uffiċjalment ħadd ma jaf iktar minn hekk, ħlief dawk li għandhom idejhom fil-borma!

Billi hemm skiet kważi perfett – silenzju stampa – dwar il-materja, hu naturali li bħalissa għaddejja ħafna spekulazzjoni dwar dak li għaddej.

L-Istati Uniti ilha s-snin turi xewqa għal ftehim SOFA mal-Gvern Malti, imma kull Gvern repetutament qagħad lura. L-indikazzjonijiet illum huma  il-possibiltà ta’ insistenza Amerikana għal rabta  bejn ftehim u l-proċess tal- Moneyval dwar l-osservanza ta’ standards internazzjonali li jirregolaw il-ħasil tal-flus.

Kemm ir-rappreżentanti tal-Gvern Malti kif ukoll dawk tal-Gvern Amerikan jiċħdu li hemm din ir-rabta. Imma fin-nuqqas ta’ informazzjoni iktar konkreta nistgħu nkunu nafu biss matul il-ġimgħat u x-xhur li ġejjin. Jekk il-Gvernijiet humiex ser iħokku dahar xulxin ikun magħruf diplomatikament, kif jiġri ħafna drabi bejn l-istati  fil-maniġġi internazzjinali globali, kontinwament.

Fil-politika internazzjonali m’hemmx ħbieb, hemm biss interessi. Ir-relazzjonijiet diplomatiċi kontinwament ifittxu l-aħjar mod kif jaġevolaw dawn l-interessi. L-Istati Uniti tal-Amerika qed tfittex u tħares l-interessi tagħha meta tipprova issib mod kif tasal għal ftehim SOFA li jirregola l-presenza ta’ militari Amerikani fuq teritorju Malti. Din hi l-politika internazzjonali.  

Hu magħruf li Malta tablet l-assistenza tal-Istati Uniti biex tegħleb il-pressjoni internazzjonali dwar il-proċess tal-Moneyval li jirregola jekk il-pajjiż huwiex qiegħed miexi sewwa dwar il-ħasil tal-flus fuq territorju Malti.

Id-diċeriji jindikaw li l-Istati Uniti lesta tgħin, imma għal din l-għajnuna hemm prezz: il-ftehim li ilhom jixtiequ. Din hi opportunità li mhux la kemm terġa’ titfaċċa. Kif nafu: ħadd ma jagħmel xejn għal xejn.

Ftehim SOFA jistabilixxi l-qafas li fih il-militar Amerikan jopera f’pajjiżi barranin. Ftehim ta’ din ix-xorta jistabilixxi jekk u kif il-liġijiet ta’ Malta japplikawx għall-militar Amerikan u għall-ħidma tagħhom, inkluż kull apparat (inkluż il-flotta navali) li jistgħu jġibu magħhom. Ftehim ta’ din ix-xorta meta jkun negozjat – jista’ jwassal għal konċessjonijiet u eċċezzjonijiet b’mod li mhux il-liġi Maltija kollha tkun tapplika għall-mistednin tal-Gvern ta’ Robert Abela.

Dan kollu jwassal għal mistoqsija bażika: il-Gvern Malti qed jikkunsidra proposta tal-Istati Uniti li jkun hawn il-militar Amerikan jopera minn teritorju Malti?  Ma għandi l-ebda dubju li ftit huma l-Maltin li jaqblu ma proposta bħal din, jekk teżisti. 

Tul is-snin fil-pajjiż żviluppa kunsens nazzjonali li m’hawnx post għall-militar ta’ pajjiżi barranin fuq artna.  

Nistgħu allura naslu għall-konklużjoni li l-Gvern Malti qed ikun rikattat: Ftehim SOFA jekk trid l-għajnuna dwar il-proċess Moneyval? Sfortunatament ma tantx nistgħu naslu għal konklużjoni differenti.

Iktar kmieni din il-ġimgħa, Alternattiva Demokratika u l-Partit Demokratiku (li fi żmien qasir ser jingħaqdu f’partit wieħed) għamlu sejħa biex l-abbozz ta’ ftehim mal-Amerikani jkun ippubblikat immedjatament. Dan hu meħtieġ biex ikun jista’ jsir skrutinju pubbliku: dan hu obbligu demokratiku bażiku.

Nazzarda ngħid li l-idea innifisha tal-ftehim hi oggezzjonabbli fil-prinċipju u dan billi tmur kontra l-prinċipji bażiċi fil-Kostituzzjoni Maltija:  mhux aċċettabbli li jkollna l-miltar ta’ pajjiż ieħor f’artna. Anke d-dettalji tal-ftehim huma inkwetanti: dawn jistgħu jinkludu l-presenza ta’ elementi tas-Sitt Flotta Amerikana bl-elementi nuklejari tagħha, li jkun opposti bil-qawwa mis-soċjetà ċivili.

Jekk Malta, kif inhu xieraq, tirrifjuta ftehim mal-Amerikani, jibqa’ l-pendenza tal-Moneyval  li tista’ twassal għal miżuri li jkollhom impatt negattiv fuq is-settur finanzjarju f’Malta. Robert Abela xorta jibqgħalu l-obbligu li jħoll l-egħeqiedi li rabtu bihom il-predeċessur tiegħu u ta’ madwaru u dan mingħajr għajnuna Amerikana.  

L-għajnuna Amerikana għandha prezz għoli li Malta m’għandhiex tħallas. Is-sovranità tagħna mhiex għall-bejgħ.

Ippubblikat fuq Illum : il-Ħadd 4 t’Ottubru 2020

Our sovereignty is not for sale

Conflicting signals are flying around as to whether, if at all, there is any sign yet of Malta and the US being close to concluding an agreement on a Status of Forces Agreement (SOFA).

The presence in Malta of US Defence Secretary Mark Esper is indicative that discussions are ongoing and moreover that they are at a very critical stage. Officially no one knows much more than that, except, that is, for those having a finger in the pie!

As a result of a news blackout on the matter, it is natural that a lot of ongoing speculation as to what is actually being discussed is developing.

A SOFA agreement with Malta has been on the US wish-list for ages: requests being repeatedly declined by successive Maltese governments. Indications point towards a linkage between the US insistence for a SOFA agreement and the developing Moneyval test on complying with money laundering standards. Both the US and the Maltese government representatives flatly deny such a linkage. In the absence of detailed information from both sides, whether such a linkage exists or not will only be clear as matters develop over the coming weeks and months. The possibility of a quid pro quo would only be evident on a diplomatic level, as happens continuously in the games states play globally.

In international politics, states do not have friends, they only have interests: diplomacy seeks to achieve and service these interests. In pursuing a SOFA agreement, the US is seeking its interests. This is the nature of international politics.

It is known that Malta has requested US assistance in the forthcoming Moneyval test. The rumour mill is of the opinion that such assistance will be forthcoming at a price: a SOFA agreement with Malta which has been yearned for by the US for a long time. It seems that this is an opportunity which is not to be missed by the US.

A SOFA is an agreement that generally establishes the framework under which U.S. military personnel operate in a foreign country and spells out how domestic laws of the foreign jurisdiction apply toward U.S. personnel in that country. Exceptions and concessions are normally sought and negotiated.

This begs a basic question: is the Maltese government considering a US proposal to have US military personnel operating on Maltese territory or in Maltese territorial waters? I would not hesitate to state that few Maltese would agree with such a proposal. It is reasonable to state that over the years a consensus has developed on these islands that there is no room for foreign troops on Maltese soil or in Maltese waters.

Should we then conclude that the Maltese government is being blackmailed: a SOFA in return for Moneyval support? Unfortunately, it is difficult to arrive at an alternative conclusion.

Earlier this week Alternattiva Demokratika and the Democratic Party (which will be shortly merging into one party) called for the draft of any Status of Forces Agreement (SOFA) with the USA to be made public immediately. This is necessary for public scrutiny. It is a basic democratic duty.

I would dare say that the very idea of a SOFA agreement is objectionable in principle as it goes flatly against the principles enshrined in Malta’s Constitution: no foreign troops on Maltese soil (or in Maltese waters). The possible details of a SOFA agreement are just as worrying: these could include the presence of elements of a nuclear powered Sixth Fleet which will be opposed tooth and nail by civil society.

Rejecting a SOFA agreement would potentially leave the Moneyval grey-listing possibilities unresolved. But then Robert Abela must seek to disentangle Malta from the suffocating problems created by his predecessor and his kitchen Cabinet without seeking US help!

US help comes at a hefty price which Malta should not pay. Our sovereignty is not for sale.

published in The Malta Independent on Sunday : 4 October 2020

Wara l-gwerra ċivili fil-PN

Għad m’hemm l-ebda ħjiel tat-tmiem tal-gwerra ċivili fil-PN. Din qed tagħmel ħafna ħsara, mhux biss lill-PN: fl-aħħar minn l-aħħar qed tagħmel il-ħsara lill-pajjiż kollu.

Kull wieħed miż-żewġ darbiet fejn ġie espress vot ta’ sfiduċja fil-Kap tal-PN Adrian Delia iwassal messaġġ politiku ċar li s’issa l-Kap tal-Opposizzjoni għad ma fehem xejn minnu. Meta Delia stqarr li l-vot ta’ sfuduċja espress mill-grupp parlamentari Nazzjonalista u iktar tard mill-Kumitat Eżekuttiv tal-PN ma kellhom l-ebda sinifikat partikolari, kien qed jesponi l-miżerja ta’ kredenzjali demokratiċi tiegħu kif ukoll kien qed jirrifletti l-immaturità politika tiegħu. Dan fl-aħħar m’għandux biss rifless fuq il-kredibilità ta’ Adrian Delia imma ukoll fuq dik tal-PN innifsu.

Il-gwerra ċivili fil-PN qed tisraq l-attenzjoni li presentement jixraq li tkun fuq materji oħra ta’ importanza kbira.  L-irkupru mill-impatti sostanzjali tal-pandemija  Covid-19 u t-tisħiħ tal-kapaċità ta’ Malta kontra l-korruzzjoni u l-ħasil tal-flus jeħtieġu ferm iktar attenzjoni u enerġija. Mhux biss mill-Gvern, imma anke mill-Opposizzjoni.

Jeħtieġ li niddiskutu fid-dettall pjan ta’ rkupru mill-pandemija Covid-19 li jinfirex fuq l-oqsma kollha effettwati: pjan li għandu jkun wieħed integrat ma’ strateġija li tindirizza t-tibdil fil-klima u dan fil-qafas tal-konklużjonijiet tas-summit ta’ Pariġi.  Alternattiva Demokratika diġà tat il-kontribut tagħha xi ġimgħat ilu permezz tal-pubblikazzjoni tar-rapport: Pjan Aħdar: Ġust u Sostenibbli.

Studju riċenti ta’ Deloitte li kien ikkummissjonat mill-Assoċjazzjoni tal-Lukandi u r-Restoranti (MHRA) jindika li l-industrija tat-turiżmu bdiet ġejja f’sensiha. Qed tirrealizza li l-irkupru mhux biss seħħ bil-mod, iżda bil-mod ħafna: iktar kajman milli qatt antiċipaw.   L-Air Malta irrevediet il-pjan kummerċjali tagħha u issa qed tantiċipa li teħtieġ madwar seba’ snin biex tkun f’posizzjoni li terġa’ tibda iġġorr l-istess numru ta’ passiġġiera li kienet iġġor qabel ma faqqgħet il-pandemija.  Dan kollu jwassal għal osservazzjoni waħda – evitata minn bosta – dwar kemm l-aspettattivi tal-industrija tat-turiżmu dwar l-irkupru tal-industrija mhumiex realistiċi.

Ikun ferm aħjar kieku napprofittaw ruħna mis-sitwazzjoni u nippjanaw aħjar biex l-industrija tat-turiżmu tissaħħaħ billi ma tibqax tiffoka fuq in-numri imma fuq il-kwalità tat-turist. Pjan ta’ din ix-xorta, bla dubju, jkun jista’ jindirizza l-impatti ambjentali negattivi sostanzjali tal-industrija b’mod effettiv. Il-Ministru tat-Turiżmu  Julia Portelli-Farrugia ma tantx tidher li taqbel ma dan, għax il-ħin kollu tredden bin-numri.

Il-Moneyval hu Kumitat tal-Kunsill ta’ l-Ewropa  magħmul minn esperti li jevalwaw miżuri kontra l-ħasil tal-flus u l-finanzjament tat-terroriżmu.  Hu grupp ta’ monitoraġġ permanenti bl-inkarigu li jara li l-istati membri tal-Kunsill ta’ l-Ewropa qed jieħdu l-miżuri meħtieġa u maqbula fuq livell internazzjonali.

Fl-aħħar rapport dwar Malta ippubblikat fl-2019 il-Moneyval, tagħmel 40 rakkomandazzjoni spjegati f’ 233 paġna. Rakkomandazzjonijiet dwar x’inhu meħtieġ li jsir.  Ir-riskji għal Malta huma ċari: għandna ekonomija li hi vulnerabbli ħafna primarjament minħabba d-daqs tagħha kif ukoll minħabba l-fatt li hi esposta ħafna għal dak kollu li jiġri barra minn xtutna.   Ir-rapport tal-Moneyval jemfasizza li r-remote gaming, per eżempju hu vulnerabbli ħafna għall-ħasil tal-flus u dan “due to the high number of customers, mainly non-resident, the high volume of transactions, the non-face-to-face nature of the business and the use of prepaid cards.”

Mhux biżżejjed li għandna liġijiet li huma ġeneralment liġijiet tajbin. Hemm ħtieġa qawwija ta’ riżorsi għax mingħajr r-riżorsi ma tista’ timplimenta xejn. Ix-xhieda riċenti tal-Assistant Kummissarju tal-Pulizija  Ian Abdilla fl-inkjesta pubblika dwar l-assassinju ta’  Daphne Caruana Galizia, ftit jiem wara li tneħħa mit-tmexxija tat-taqsima tar-reati ekonomiċi, jindika n-nuqqas ta’ impenn biex il-ħafna dikjarazzjonijiet li jsiru kontra l-ħasil tal-flus ikunu implimentati. Sfortunatament id-dikjarazzjonijiet u l-assigurazzjonijiet repetuti tal-Gvern mhumiex kredibbli.

Mhux aħjar l-Opposizzjoni tuża’ l-ħin tagħha dwar dan? Iktar ma jikkonkludu l-glied intern malajr, aħjar għal kulħadd. Hemm ħafna x’isir wara li  Adrian Delia jiġi f’sensieh u jaċċetta l-inevitabbli.

 

Ippubblikat fuq Illum: il-Ħadd 19 ta’ Lulju 2020

After the PN civil war

The civil war within the PN has no end in sight. This does not only inflict considerable damage on the PN: at the end of the day it damages the whole country.

The two instances of a vote of no confidence in PN leader Adrian Delia are clear political statements which unfortunately the Opposition leader has so far been incapable of deciphering. Labelling the no confidence votes expressed separately by the Opposition Parliamentary Group and the PN Executive Committee as being of no significance further dilutes Adrian Delia’s democratic credentials and reflects his political immaturity. This has a bearing not only on Delia’s credibility but also on that of the PN.

The PN civil war is diverting attention from more pressing issues. The recovery from the devastating impacts of Covid-19 and the strengthening of Malta’s capability in the fight against corruption and money laundering surely require more attention and energy. Not just from government but also from the opposition.

We need to discuss in depth a Covid-19 recovery plan which spans all areas and factors in climate change. Maltese Greens have already made their contribution through the report published some weeks ago entitled: Green Plan: Fair and Sustainable.

A recent Deloitte study commissioned by the Malta Hotels and Restaurants Association (MHRA) indicates that the tourism industry is coming to its senses and realising that the recovery is slow, maybe even much slower than originally perceived.  Air Malta’s revised business plan is envisaging that it will take around seven years for the national carrier to return to pre-Covid-19 capacity. All this begs the question, so far avoided, as to whether the expectations of the tourism industry of attaining full recovery are realistic.

Would it not be more realistic if we realise that this is the appropriate time to plan for a tourism industry that foregoes quantity and focuses on quality? Such a course of action would address the substantial negative environmental impacts of the tourism industry. Tourism Minister Julia Portelli-Farrugia is not on the same page. She is unfortunately desperately after numbers.

Moneyval is a Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. It is a permanent monitoring body tasked with assessing compliance of Council of Europe member States with international standards.

In its 2019 report on Malta, Moneyval, in a 233-page report, made 40 recommendations on measures which need to be taken. The risks are clear: our economy is highly vulnerable to money laundering, even as a consequence of its size and international exposure.  The report emphasises that remote gaming, for example, is inherently vulnerable to money laundering “due to the high number of customers, mainly non-resident, the high volume of transactions, the non-face-to-face nature of the business and the use of prepaid cards.”

Having good laws is not sufficient. Resources are desperately needed as otherwise laws cannot be implemented. The recent testimony of Police Assistant Commissioner Ian Abdilla in the ongoing public inquiry on the assassination of Daphne Caruana Galizia, a few days after being unceremoniously removed from leading the Economic Crimes Unit, clearly indicates the lack of commitment to implement Malta’s declared objectives in addressing money-laundering. Unfortunately, government’s repeated declarations and assurances are not credible.

Some food for thought for the Parliamentary Opposition: the sooner they conclude their in-fighting the better. There is much to be done after Adrian Delia comes to his senses and accepts the inevitable.

Published in The Malta Independent on Sunday : 19 July 2020

Edward Scicluna u l-bajtar tax-xewk

Iktar kmieni din il-ġimgħa, l-President tal-Kummissjoni tal-Unjoni Ewropea, Ursula von der Leyen, ippreżentat lill-Parlament Ewropew pjan ta’ €750 biljun biex inqumu fuq saqajna. Pjan li jista’ jiġġenera investiment stmat €3.1 triljun fl-ekonomija Ewropea. Permezz ta’ għotjiet flimkien ma’ self, il-Kummissjoni Ewropea qed tfittex li tegħleb l-impatti ekonomiċi negattivi tal-Covid-19 kif ukoll li tagħti bidu għall-azzjoni meħtieġa biex ikun implimentat il-Ftehim l-Aħdar (the Green Deal).

It-triq biex nirkupraw mhiex faċli. Mhux il-każ li mmorru lura għal kif konna. Dak spiċċa. Irridu nimxu l-quddiem lejn normal ġdid. Li nintegraw flimkien il-ħidma biex nirkupraw mill-impatti tal-pandemija flimkien mal-azzjoni meħtieġa dwar it-tibdil fil-klima mhux ser tkun faċli imma hi essenzjali u mhux possibli li tkun posposta. Kif ġie emfasizzat fuq Euroactive nhar l-Erbgħa, it-triq biex nirkupraw tiddependi minn ħafna kundizzjonijiet konnessi mal-ambjent. 25 fil-mija tal-finanzjament propost mill-Kummissjoni Ewropeja hu fil-fatt marbut ma’ ħidma klimatika.

Edward Scicluna, il-Ministru tal-Finanzi, fl-ewwel reazzjoni tiegħu għall-pjan tal-Kummissjoni ikkummenta mħasseb dwar miżuri prattiċi konnessi mal-klima. Bħala gżira ser inweġġgħu ħafna qal, jekk jindirizzaw l-emissjonijiet tal-ajruplani u l-vapuri. Il-pjan, qal Edward Scicluna, jixbah lill-bajtar tax-xewk. Scicluna jippreferi li ma jsir xejn ħlief paroli. L-anqas m’hu jieħu pjaċir b’dak li qed jingħad dwar it-tassazzjoni tal-kumpaniji, avolja konxju li m’għadx baqa’ żmien biex fl-Unjoni Ewropea tħajjar kumpaniji jibqgħu jħarbu l-obbligi tagħhom tal-ħlas tat-taxxi.

Hu korrett li jingħad li ser nintlaqtu bil-miżuri dwar il-klima. Hekk għandu jkun, għax il-ħidma tagħna għandha impatt fuq il-klima. Nistgħu imma ninnegozjaw biex dawn l-impatti fuqna jonqsu mingħajr ma nnaqqsu l-impenn (reali) tagħna biex ikunu indirizzati l-impatti klimatiċi tal-industrija tal-avjazzjoni u tal-vapuri. Bla ebda dubju dan ser ikun ifisser impatti sostanzjali kemm fuq it-turiżmu kif ukoll fuq il-kummerċ.

Dan ma jistax ikun evitat għax dawn l-industriji għandhom l-obbligu li huma ukoll jġorru fuq spallejhom l-impatti li qed jikkawżaw. Dak hu li wegħdna bħala pajjiż fis-Summit ta’ Pariġi dwar il-klima. Wasal il-waqt li nwettqu dak li ġie imwiegħed. Biex niġu fuq saqajna irridu nfasslu l-futur mill-ġdid. Il-ħsara li teħtieg li tissewwa mhiex biss dik ekonomika u ambjentali. Jinħtieġ li tul l-Unjoni Ewropea kollha nibnu s-solidarjetà fuq pedamenti sodi. Dak li Edward Scicluna jqis bħala l-bajtar tax-xewk huma fil-fatt l-għodda bażiċi tas-solidarjetà.

Għax is-solidarjetà hi meħtieġa mhux biss meta aħna bir-raġun kollu nokorbu ma’ kull mewġa ta’ immigranti fl-ibħra Maltin. Is-solidarjetà hi dak li Malta tinjora meta tfittex li tkun attraenti għal min irid jevadi t-taxxi f’pajjiżu: dawk li jħallsu ftit lill-kaxxa ta’ Malta biex jevitaw milli jħallsu l-biljuni band’oħra. Il-politika dwar l-armonizzazzjoni tat-tassazzjoni fl-Unjoni Ewropea hi r-risposta bis-sens għall-politika li tinkoraġixxi l-evażjoni tat-taxxa f’Malta, l-Olanda, il-Lussimburgu u l-Irlanda.

L-Oxfam f’rapport ippubblikat fl-2019 u ntitolat “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” temfasizza li “l-Irlanda, il-Lussimburgu, Malta u l-Olanda huma fost il-pajjiżi li l-iktar jinkoraġixxu l-evażjoni tat-taxxa fid-dinja, b’mod li jagħmluha possibli li kumpaniji kbar jirnexxielhom iħallsu ammont żgħir ta’ taxxa. Per eżempju, ir-regoli internazzjonali tat-taxxa jippermettu lill-Vodafone Group Plc biex jallokkaw kważi 40 fil-mija tal-profitti taxxabbli tagħhom f’Malta u l-Lussimburgu.”

Rajna ukoll rapporti dwar il-BASF, ġgant fl-industrija kimika fil-Ġermanja, li jispjegaw kif din tevadi t-taxxa. Fir-rapport tal-Ħodor Ewropej ippubblikat fl-2016, intitolat “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” kien spjegat kif il-BASF irnexxiela tevadi madwar biljun euro f’taxxa, u minflok ħallset ammonti żgħar bil-kompliċità ta’ Gvernijiet Maltin: ħomor u blu.

Jeħtieġ li l-ewwel u qabel kollox nirkupraw l-imġieba etika tagħna, anke qabel ma nirkupraw ekonomikament u ambjentalment. Ir-riġenerazzjoni tal-valuri tagħna għandha tkun prijorità qabel ma nippruvaw insewwu l-kaxxa ta’ Malta li minnha, bħalissa ħerġin il-flus maħmuġin akkumulati mill-bejgħ tal-passaporti. Flejjes miġburin minn persuni bħall-biljunarju Russu Boris Mints, l-Eġizzjan Mustafa Abdel Wadood, il-biljunarju Ċiniż Liu Zhongtian, in-negozjant Russu Pavel Melenikov u l-Iżraeli Anatoly Hurgin, li irnexxielhom jiżgiċċaw minn eżami suppost rigoruż u ngħataw iċ-ċittadinanza Maltija: però xorta spiċċaw għaddejjin proċeduri kriminali f’diversi pajjiżi oħra primarjament dwar frodi u ħasil tal-flus!

F’dan iż-żmien ta’ ħtieġa l-Ministru tal-Finanzi Edward Scicluna spiċċa dipendenti fuq flejjes li oriġinaw minn dawn is-sorsi maħmuġin. Ma tkunx esaġerazzjoni li ngħid li spiċċa dipendenti minn flus li oriġinaw mill-kriminalità.

Fir-reazzjonijiet tagħha għall-proposti tal-Kummissjoni tal-Unjoni Ewropea Evelyne Huytebroech, waħda miż-żewġ mexxejja tal-Partit tal-Ħodor Ewropej, emfasizzat li din il-proposta flimkien ma dik tal-Parlament Ewropew u l-proposta Franco-Tedeska ilkoll qed jaraw proċess ta’ self komuni. Dan hu pass il-quddiem għas-solidarjetà Ewropea. Għax is-solidarjetà tinbena bil-mod u bit-tbatija. Imma għal Edward Scicluna dan kollu bajtar tax-xewk!

ippubblikat fuq Illum :il-Ħadd 31 ta’ Mejju 2020