Climate change: tourism will not be spared

The era of €10 air fares is over, warned Michael O’Leary, Ryanair boss. This follows the news in the past weeks that within the European Union, in order to implement the Green Deal, aviation must do its part by internalising its environmental costs. That is, environmental costs must be incorporated in the price of air fares. This is a direct and practical application of the polluter pays principle.

Aviation has been a free rider for quite some time, being exempted from shouldering the impacts of the emissions which it generates. The holiday is now over and as a direct result the tourism industry must take stock of the situation. Like all other economic sectors, it must factor in its costings the environmental impacts which it generates.

The polluter pays principle is a basic environmental principle which forms an integral part of the EU acquis: it guides EU policy. Since 2004 it also forms an integral part of Malta’s environmental legislation and consequently it should also guide the formulation of Maltese policy.

Unfortunately, notwithstanding the approval by Parliament of a motion declaring recognition of the climate emergency, this declaration is still a paper declaration. The necessary policies required to face this emergency have never been discussed, approved and acted upon. It is disappointing that a prime mover behind the climate emergency motion is now equating the required action to address aviation’s climate change impacts as being contrary to the national interest. He has no idea on the matter!

Let us be clear:  as an archipelago in the centre of the Mediterranean, the Maltese islands will be severely impacted by the next stages of climate change impacts, that is the rise in sea level. The coastal areas will be hard hit, possibly they will be wiped out or substantially reduced, depending on the extent of the sea level rise. This is also applicable for all the coastal infrastructure, which includes practically all tourism facilities.

It is in Malta’s national interest that the 2015 Paris climate goals are adhered to and implemented the soonest. Seeking exemptions is not on.  Obviously there will be considerable impacts. The impacts of acting to address climate change will however be substantially less if we act than if we continue avoiding our responsibilities. 

Over the years technology will undoubtedly improve, possibly reducing the burden. The second European Aviation Environment Report drawn up in 2019 by the European Union Aviation Safety Agency (EASA), the European Environment Agency (EEA) and Eurocontrol points out that within the European area, the average fuel consumption of commercial flights has decreased by 24 per cent over the period 2005-2017. However, over the same time frame there has been a 60 per cent increase in the kilometres flown by commercial flights!

This statistic frames the issue: technology is driving down the emissions per passenger kilometre, however the number of passenger kilometres has been on an exponential increase as more people are travelling by air.

Currently there is an ongoing debate regarding a tax on aviation fuel. This is one of the essential measures needed to enable the reduction of 55 per cent of greenhouse gas emissions by 2030 and beyond.

This initiative is aimed to ensure that the price of an air flight includes all costs, including the environmental costs caused by the resulting emissions. This can be carried out either by a tax on air travel or else through the use of alternative means of transport, as a result of which the tax can be avoided legally, with the resultant decrease of the environmental impacts. In mainland Europe the use of trains is many a time a good alternative for air travel not just due to its efficiency but also in generating less environmental impacts. In the case of Malta and other islands the potential use of alternatives is very limited. This leads to an inevitable increase in the cost of air travel and the consequential decrease in air travelling, both incoming and outgoing.

Although there may eventually be some reasonable concessions for those who live on isolated islands, tourism cannot keep avoiding its own environmental impacts: this is what social and environmental justice demands! It is in Malta’s interest that the environmental impacts of tourism, particularly mass tourism, is contained before it is too late. The aviation industry must be prodded through economic means, such as environmental taxation, to restructure itself. Let us all remember that like all islands, Malta, together with coastal communities, will be the first to suffer some of the worsts repercussions of climate change: the increase in sea level. Tourism will not be spared. The climate will not consider our special situation or our economic considerations – nature does not discriminate: it will roll over us as it did elsewhere!

Tourism is at a crossroad. It needs to urgently adapt to the impacts of climate change. This is tourism’s future, not tax exemptions.

published in The Malta Independent on Sunday : 14 August 2022

L-annimali, il-moħqrija u l-ikel fuq il-platt

Issa għaddew iktar minn seba’ snin minn meta issejjaħ ir-referendum dwar il-kaċċa fir-rebbiegħa. Referendum li kien inizjattiva ta’ Alternattiva Demokratika flimkien ma’ koalizzjoni ta’ 13-il għaqda ambjentali u tal-ħarsien tal-annimali u li kien intilef b’numru żgħir ħafna ta’ voti. Kultant dan il-proċess demokratiku jerġa’ jissemma’ fl-aħbarijiet u dan billi l-għaqdiet tal-kaċċaturi jridu  jnaqqsu l-aċċess għal dan id-dritt. S’issa, fortunatement, ħadd ma jidher li ta każ tagħhom. Imma ħadd ma jaf jekk l-affarijiet jinbidlux fil-futur!

Flok ma nirrestrinġu l-użu demokratiku tal-għodda tar-referendum għandna nikkunsidraw li nestendu l-użu tiegħu. Sal-lum għandna d-dritt li niġbru l-firem biex jissejjaħ referendum li jipproponi li titħassar liġi jew parti minnha. Għalhekk jissejjaħ referendum “abrogattiv” għax huwa referendum li jħassar ligi jew parti tagħha. Dan id-dritt demokratiku  għandu jkun estiż biex ikun possibli li jittieħdu inizjattivi dwar liġijiet li l-Parlament jevita b’mod kontinwu.  ADPD-The Green Party repetutament ippropona li dan isir bi proposti speċifiċi fil-manifest elettorali. L-aħħar darba li dan sar kien fl- elezzjoni ġenerali tal-2022.

Ir-referendum tal-2015 dwar il-kaċċa fir-rebbiegħa kien biex jitħassru regolamenti li kienu jippermettu l-kaċċa fir-rebbiegħa. B’dan il-pass kienet tkun qed tiġi imħarsa l-bijodiversità u dan għax fil-perjodu li l-għasafar ibejtu l-ebda kaċċa ma kienet tkun permessa.   Dan imma ma kienx jindirizza l-ħarsien tal-għasafar b’mod iktar wiesa’. Biex dan ikun jista’ jseħħ teħtieġ li tkun abolita l-kaċċa f’kull żmien. Din fil-fatt kienet, u nifhem li għada, l-posizzjoni ġustifikata tal-għaqdiet li jaħdmu favur l-annimali.

Id-dibattitu lokali dwar il-ħarsien tal-annimali hu sfortunatament limitat għall-annimali li nżommu fid-djar (pets), dawk li jintużaw fir-riċerka, kif ukoll riċentment għaż-żmiemel li jintużaw mal-karozzini. Ittieħdu diversi inizjattivi dwar iż-żwiemel u dan wara ħidma bla waqfien mill-għaqidet li jaħdmu favur il-ħarsien tal-annimali.

Il-mod kif l-industrja tal-agrikultura timxi mal-annimali fl-irziezet hi materja ta’ importanza. Qed jingħata importanza dejjem ikbar fl-Unjoni Ewropeja.

Riċentement, Alison Bezzina, il-Kummissarju għall-Ħarsien tal-Annimali ippruvat testendi d-diskussjoni dwar dan kollu billi ikkummentat dwar il-konsum tal-ħalib. Il-kummenti tagħha saru fil-Jum Dinji tal-Ħalib (3 ta’ Ġunju). Hi ibbażat il-kummenti tagħha fuq dak li jgħaddu minnu l-baqar li jipproduċu l-ħalib b’mod naturali għall-għoġġiela tagħhom u jispiċċaw jeħdulhom kemm il-ħalib kif ukoll lill-għoġġiela biex jinbiegħ kummerċjalment!  

L-argument dwar il-mod kif nimxu mal-annimali jkompli. Intqal illi kieku l-biċċerija għandha ħitan tal-ħġieg, ħadd iktar ma jiekol laħam. Il-punt hu li l-mod kif jiġi prodott il-laħam jassoġġetta lill-annimali għall-moħrija esaġerata li, kieku tkun magħrufa, tant taħsad nies li kważi ħadd iktar ma jmiss il-laħam b’mod permanenti.

It-trasparenza fil-biċċerija u l-fabbriki tal-annimali hi essenzjali biex ikun assigurat li r-regoli bażiċi li jħarsu lill-annimali mill-moħqrija bla sens qed jiġu osservati.

It-triq mir-razzett sal-mejda tal-ikel hi mimlija bi problemi konnessi mat-trattament ħażin tal-annimali. Li kellna nkunu nafu iktar dak li jseħħ wara l-bibien magħluqin tal-irżieżet jew tal-fabbriki tal-annimali bla dubju jkollna  nibdew naħsbu sewwa dwar l-għażliet tagħna ta’ dak li nieklu. Dawn huma għażliet li ħafna drabi nagħmluhom b’għajnejna magħluqa, bla ħafna ħsieb. Huma għażliet awtomatiċi li ħafna drabi ftit tajna każ ta’ xi jfissru: għax dejjem hekk għamilna.

L-etika dwar dak li nieklu hi estensjoni naturali tad-dibattitu ambjentali. Fil-fatt il-ġustizzja ambjentali u l-ħarsien tal-annimali huma tewmin.

In-numru ta’ dawk li ma jieklux laħam qiegħed jiżdied kif qiegħed jiżdied in-numru ta’ dawk li ma jridux imissu prodotti ġejjin mill-ħalib. Din iż-żieda hi waħda fuq livell globali. Dawn l-għażliet qed isiru fuq konsiderazzjonijiet ambjentali, konsiderazzjonijiet dwar ħarsien tal-annimali kif ukoll konsiderazzjonijiet etiċi.

Il-Gvern jippenalizza lil dawk li jagħmlu għazliet etiċi dwar l-ikel. Dan ġie emfasizzat riċentement waqt intervista ta’ Darryl Grima, ambjentalist, veġan u attivist kontra l-qtil tal-annimali għall-ikel. Hu meħtieġ li l-Gvern ma jibqax jippenalizza lil min jagħmel dawn l-għażliet. Darryl Grima jsemmi eżempju wieħed. Il-ħalib hu meqjus bħala prodott tal-ikel u għaldaqstant fuqu ma titħallasx taxxa fuq il-valur miżjud (VAT). Imma l-prodotti li jintużaw bħala alternattivi għall-ħalib ma jitqiesux bħala ikel u allura huma soġġetti għall-VAT. Dan mhux sewwa u għandu jinbidel.

Mahatma Gandhi kien jemfasizza li “l-kobor ta’ nazzjon u l-progress morali tiegħu jitkejjel minn kif huwa jittratta lill-annimali.”  Dan jgħodd għal kulħadd, f’kull żmien.

ippubblikat fuq Illum : 10 ta’ Lulju 2022

The financing of the PLPN

Through a number of articles in the local press we have been repeatedly made aware that government and its authorities do not treat the parliamentary political parties (and their commercial companies) as the rest of us when it comes to outstanding bills, including those relating to taxes due.

The regulation of party-political financing should not stop at donation reports. We need to shine the spotlight on their pending bills too as these are an additional substantial financing source which in practice serves to finance the political parties through open-ended credit facilities! It is being carried out by the state, directly and by stealth.

To be clear I am referring to outstanding VAT payments and pending water and electricity bills which go back a number of years which have accumulated to millions in outstanding dues. In addition, there are also NI and PAYE contributions collected by the parliamentary political parties and their commercial companies on behalf of the Inland Revenue Department from their employees and retained unlawfully at their end. Any private employer who acts in the same manner is normally subject to legal action, in particular for failure to act on repeated reminders to conform! If you try not paying your water and electricity bills for years on end you will very soon receive a polite notice from ARMS indicating that you will soon have no more access to water and electricity!  But it is kids gloves for the PLPN. 

The amounts due run into many millions of euros and form part of the accumulated debts of the parliamentary political parties. It is difficult to quantify the precise amounts due by PLPN and their commercial companies as the authorities continuously withhold information as to the precise accumulated amount of the arrears due. The only information available in the public domain is sourced through leaks indicating that the amounts due run into millions: an upward eight digit spiral! Public knowledge of the extremely generous credit terms which public authorities grant parliamentary political parties and their companies would reveal the systemic abuses which have been shielded for too long a time.  This information should be disclosed as this is in the public interest. Good governance requires it.

This is an indirect source of political party financing which needs to be quantified and acted upon immediately. It is unfortunate that the regulator of political party financing is the Electoral Commission which is itself composed of nominees of the PLPN, who are thus regulating themselves, in addition to regulating their direct competitors, the other political parties.

It is also about time that the commercial companies belonging to the political parties are dealt with as an integral part of the political parties which they service. Stricter controls and real-time reporting time-frames are essential if we really want to ensure that these commercial companies are not used as vehicles to channel illicit funding to oil the PLPN political machinery.

As expected PLPN are in denial. The PL insists that its companies have not entered into a deal with Yorgen Fenech. The PN on the other hand insist that all is above board at its end: they proclaim that they have not issued any fake dB invoices! Yet both of them continuously fail to play by the rules. Audited accounts for their companies have not been presented for many years. As a result, there is no way to verify whether and to what extent the PLPN commercial companies are innocent of the charges that they are being continuously used to circumvent the rules regulating the funding of political parties.

Both the PL and the PN sanctimoniously proclaim their adherence to the basic principles of good governance. It is about time that they start practicing what they preach!

published in The Malta Independent on Sunday : 17 April 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

Is-sospensjoni ta’ Victor Vella: editur tal-Orizzont u tat-Torċa

Is-sospensjoni ta’ Victor Vella minn editur ta’ L-Orizzont u it-Torċa hi ta’ tħassib. Mhux biss għax tikkonċerna ġurnalist ewlieni fil-pajjiż, imma ukoll minħabba is-segretezza li hemm dwar x’inhuma r-raġunijiet li wasslu għal dan il-pass.

Qed jingħad li s-sospensjoni seħħet bħala riżultat tal-pressjoni dwar il-linja editorjali mħaddna mill-gazzetti immexxija minn Vella, liema pressjoni jidher li saret mill-Gvern Laburista immexxi minn Robert Abela. Il-Gvern ta’ Abela qed jingħad li nsista li tinbidel il-linja editorjali progressiva ta’ Vella li kienet qed tesponi każi soċjali diversi. Il-Gvern ta’ Abela, jingħad li kien qed jilmenta li l-linja editorjali ta’ Vella kienet qed toskurah.

Il-GWU, sid il-gazzetta ċaħdet dan kollu. Anzi, qalet li hi qed tiddefendi lill-istess Vella quddiem il-Management tal-Union Print li tmexxi l-gazzetti!

Dan kollu jiena ma nifhmux, għax il-Union Print hi tal-General Workers Union stess u fil-fatt Victor Carachi, president tal-GWU hu l-uniku Direttur reġistrat tal-Union Print kif jidher fl-informazzjoni li hemm aċċessibli fir-reġistru tal-kumpaniji.

Il-GWU għandha ħafna x’tirrispondi dwar dan kollu.

The resignation of David Thake

The resignation of David Thake is a positive step.  It takes courage to admit to having acted incorrectly and shoulder the political responsibility for your actions. There are others who should follow in his footsteps. Parliament, as a result would be a much better place.

The fact that the tax misdemeanours of the companies owned by David Thake were revealed through media leaks does not make the case any less serious. It however adds another worrying dimension to the saga: institutional breach of ethics, this time by the tax authorities. The Minister for Finance Clyde Caruana is politically responsible for this. He has to act fast to address the matter.

Registered editors already have a right to request income tax returns of sitting MPs. This right should be extended to VAT returns, not only those submitted personally by sitting MPs but also by companies in which they have a controlling interest. This would do away with selective leaking of damaging tax information which generally targets those who those close to government seek to damage or destroy!

It has been established that the two companies owned by David Thake, namely Vanilla Telecoms Limited and Maltashopper Limited have collected Value Added Tax due on their services and retained the tax collected for a long period of time. His companies, stated David Thake, had a problem with their cash flow and thus they were not in a position to pay up the taxes they had collected.

Vanilla Telecoms Limited owes the exchequer €270,000 while Maltashopper Limited owes another €550,000. This is a substantial sum which has been collected from taxpayers through VAT and includes fines and interest due for non-payment.

There are serious doubts as to whether Thake’s claim that he was simply applying the Covid-19 tax deferral scheme is correct.

Given that most of the pending VAT dues of Thake’s companies date back to substantially before the outbreak of Covid-19 Thake has yet to explain as to why it took him so much time to address the cash flow problems of his companies. He has shed too many crocodile tears in emphasising that faced with cash flow problems he opted to pay his employees rather than the VAT office. His delay in acting to address his cash flow problems has the specific consequence of endangering the livelihood of the very employees, which he is so keen to protect!

It is not correct to describe David Thake as a tax evader. It is unfair to compare him to Bernard Grech, his party leader, who was investigated for tax evasion over the years and opted to pay up on the eve of the PN leadership contest.

In view of the fact that Thake’s companies have yet to submit their accounts it is not yet clear as to the actual cause of his cashflow problems.

The point at issue is whether it is right for David Thake to bankroll his companies through the taxes they have collected as economic operators. The fact that there are others who do likewise, and maybe worse, is no consolation!  He was a member of parliament elected on a good governance platform. The mismatch between his behaviour and his stated beliefs cannot be clearer than this.  This is no minor administrative omission as David Thake emphasised when he announced his resignation.

Its fine to preach good governance. Putting this into practice is a completely different matter. Thake’s resignation, even though he took some time to decide that he should resign, puts some sense back into local politics. Thake’s resignation is a positive contribution to improve standards. Ian Castaldi Paris and Rosianne Cutajar should be next.

published in The Malta Independent on Sunday: 16 January 2022

Il-kumpaniji tal-PLPN jeħtieġ li jkunu regolati sewwa

Tal-PLPN, permezz tal-kumpaniji tagħhom tal-media, għandhom jagħtu l-miljuni lill-Kummissarju tal-VAT.  Kif jistgħu qatt ikunu kredibbli meta jitkellmu dwar il-miżuri meħtieġa kontra l-evażjoni tat-taxxa?  Mhux aħjar li jkunu huma minn tal-ewwel li jħallsu dak dovut u jagħtu l-eżempju?

Iktar kmieni din il-ġimgħa konna infurmati li l-kumpaniji tal-media tal- PL u tal-PN għandhom jagħtu mal-€5 miljuni lill-Kummissarju tal-VAT. Dan l-ammont hu dovut lill-kaxxa ta’ Malta u jirrappreżenta taxxa li nġabret mill-kumpaniji tal-PLPN u nżammet għandhom.  Iż-żamma għandhom da parti tal-kumpaniji tal-PLPN ta’ dawn il- €5 miljuni jfisser li dawn ħadmu uqed jaħdmu bi flus li ma humiex tagħhom, iżda tal-kaxxa ta’ Malta. Huwa self moħbi li minnu ibbenefikaw kemm il-PL kif ukoll il-PN. Għalhekk kważi skiet perfett. Fejn jaqblihom iħokku dahar xulxin: malajr jiftehmu bi ftit kliem.

L-għaqdiet tan-negozju għamlu sew li semmgħu leħinhom u lmentaw pubblikament dwar dan it-trattament preferenzjali tal-kumpaniji tal-PLPN dwar il-ħlas tal-VAT li dawn għad għandhom pendenti. Huwa essenzjali li l-mexxejja tal-pajjiż imexxu bl-eżempju. Kif ngħidu, l-kliem iqanqal, imma l-eżempju jkaxkar.  

Il-problema iżda hi ħafna ikbar minn hekk. Xi żmien ilu l-medja kienet ikkummentat dwar il-fatt li tal-PLPN l-anqas il-kontijiet tad-dawl u l-ilma ma kienu qed iħallsu. Il-kontijiet pendenti kienu enormi.  L-aħħar informazzjoni li sibt kienet tindika kontijiet pendenti tal-PLPN u l-kumpaniji tagħhom, flimkien, għall-ammont ta’ madwar  €2,500,000. Diffiċli biex ikollok informazzjoni preċiża u aġġornata minħabba li l-ARMS tqis li din hi materja kunfidenzjali minkejja li hi materja ta’ importanza nazzjonali enormi: għax il-PLPN qed jabbużaw mis-sistema u l-awtoritajiet mhux biss qed iħalluhom imma qed jostruhom.    L- ARMS għandha l-obbligu li tittratta lill-kumpaniji tal-PLPN bl-istess mod li timxi ma’ kumpaniji oħra: trid tassigura ruħha li anke huma jħallsu l-kontijiet fil-ħin!  

Għadni ma semmejtx l-arretrati dwar il-ħlas tal-kontribuzzjoni tas-sigurtà nazzjonali u t-tnaqqis tal-PAYE għat-taxxa tad-dħul tal-impjegati tal-partiti politiċi u tal-kumpaniji tagħhom. Minn dak li ġie indikat fil-passat dawn l-arretrati jistgħu jammontaw għal miljuni kbar, avolja l-ammont eżatt tagħhom mhux magħruf!

Dan ifisser li fil-prattika tal-PLPN għandhom sors ieħor mhux dikjarat ta’ dħul li bih jiffinanzjaw il-ħidma tagħhom: għandhom kreditu fuq it-taxxi u pagamenti oħra dovuti lill-istat u istituzzjonijiet oħra. Self ieħor iffinanzjat minn dawk li jħallsu it-taxxi: self mhux dikjarat li jista’ jammonta għal madwar €10,000,000!

Kull negozju li jkollu jħallas dawn l-ammonti f’taxxa u ħlasijiet oħra jkollu jkollu inkwiet mhux żgħir. Ikun qabad it-triq tal-falliment. Jkun qed jissogra li l-assi tiegħu jittieħdu biex bihom jitħallsu l-kontijiet pendenti. Imma mal-PLPN, qiesu ma ġara xejn!

Dan kollu irridu narawh ukoll fil-kuntest ta’ xi ftehim mistur li niskopru bih minn żmien għal żmien bejn il-partiti l-kbar u x’uħud fin-negozju. L-aħħar każ hu dak tal-abbozz ta’ ftehim bejn il-Labour u Yorgen Fenech liema ftehim kien jipprovdi ħlas ta’ €200,000 għal xi servizzi. Dan bla dubju jfakkarna fil-każ l-ieħor ta’ xi snin ilu bejn il-Grupp dB u l-PN, dwar servizzi ukoll. F’kull kaz wara dawn il-ftehim hemm moħbija donazzjonijiet politiċi “taparsi ħlas għal servizzi”. B’hekk il-partiti l-kbar ikunu qed iduru mar-regolamenti dwar id-donazzjonijiet li jistabilixxu li l-valur kumulattiv ta’ donazzjoni fi flus lil partit politiku ma tistax taqbeż il–limitu ta’ €25,000 minn sors wieħed speċifiku.  

Dan kollu jipponta lejn nuqqas gravi u intenzjonat fit-tfassil tal-leġislazzjoni li tirregola l-finanzjament tal-partiti politiċi. Għidna repetutament li kemm il-PL kif ukoll il-PN kontinwament qed jagħmlu użu mill-kumpaniji tagħhom biex b’mod konvenjenti jevitaw l-obbligi tar-regolamenti finanzjarji.  

Kif wieħed jistenna, l-PLPN jiċħdu dan kollu. L-PL jinsisti li l-kumpaiji tiegħu ma daħlu fl-ebda ftehim ma’ Yorgen Fenech. Il-PN, min-naħa l-oħra jinsisti li m’għandu xejn irregolari. Imma mbagħad it-tnejn li huma ma jimxux mar-regoli. L- accounts ivverifikati tal-kumpaniji tagħhom ilhom snin kbar ma jkunu ppreżentati lill-awtoritajiet skond il-liġi. Bħala riżultat ta’ dan ma hemm l-ebda dokumenti li jistgħu jindikaw  jekk u kif il-kumpaniji tal-PLPN humiex verament mexjin sew u b’mod partikolari jekk humiex kontinwament jintużaw biex ikunu evitati ir-regoli dwar id-donazzjonijiet lill-partiti politiċi.

Hemm ħtieġa urġenti li r-regoli li bihom huma rregolati l-kumpaniji tal-partiti politiċi induruhom dawra sew. Dawn il-kumpaniji għandhom ikunu eżaminati fil-kuntest tal-Att tal-2015 dwar il-Finanzjament tal-Partiti Politiċi.  Rappurtaġġ fil-ħin hu essenzjali biex ikun assigurat li dawn il-kumpaniji ma jibqgħux jintużaw biex tinkiser il-liġi.  

F’dan il-mument il-PLPN u l-kumpaniji tagħhom ikkapparraw self sostanzjali bla ebda awtorizzazzjoni. Dik governanza tajba!

Il-PLPN ma jistgħux isolvuha din. Huma parti integrali mill-problema.

Huma biss Membri Parlamentari eletti minn fost dawk ippreżentati minn ADPD li jistgħu jibdew it-triq tat-tindif tat-taħwid li ħoloq u kattar il-PLPN.

ippubblikat fuq Illum: il-Ħadd 12 ta’ Settembru 2021

Regulating the commercial companies owned by PLPN

PLPN media houses owe millions to the VAT office.  How can PLPN be credible when speaking about measures to bring tax dodging and tax evasion under control? Would it not be more appropriate if they bring their own house in order first?

Earlier this week we were informed that the PL and the PN media houses have a combined unpaid VAT tax bill to the tune of €5 million. This amount is due to the exchequer and represents VAT collected by them and not paid to the state coffers. The retention by the PLPN of this sum of €5 million also signifies that the party media houses are making use of monies due to the national exchequer in their day-to-day workings!  It is an undeclared loan to the benefit of both the PL and the PN. Whenever it suites them, PLPN are in agreement. They are on the same wavelength. They are taking a free ride on the taxpayers back, year-in year-out.

Business is right to publicly complain on the preferential treatment meted out to the PLPN media houses on outstanding VAT payments. It is a reasonable expectation that the country’s leaders should lead by example!

The problem is however much larger than that. Some time back the media alerted us on the PLPN pending water and electricity bills too. The pending amounts due were known to be substantial. The latest available information is of a combined outstanding bill of €2,500,000. Up to date information is difficult to come by as ARMS considers it as a confidential matter, notwithstanding it being a matter of public interest due to its abusive nature.  Is it not about time that ARMS deals with PLPN companies in the same way as it deals with its other customers and ensures that they pay their bills on time?

There are also arrears due for National Insurance contributions and Income Tax deductions for employees of political parties and their companies. It has in the past been indicated that these arrears may run into many million euros even though the precise quantum is not known.

In effect this means that the PLPN have another undeclared source of finance for their day-to-day operations: an interminable credit on taxes and payments due to the state and its various institutions. Another loan financed by taxpayers in the region of around €10,000,000!

This has to be seen within the context of the underhand deals revealed from time to time between PLPN and business. The latest revelation of a possible draft agreement between Labour and Yorgen Fenech through which a €200,000 “deal for services” by the party media was planned, is a case in point. This is reminiscent of the other deal some years back between the dB Group and PN companies also for “services” by the party media. In both cases these deals are intended to disguise effective donations as “payment for services” thereby circumventing the donations regulations which impose an annual cumulative limit of €25,000 for donations to political parties from any one specific source.

Any business owing so much to the exchequer would be in deep trouble, on the inevitable fast track road to bankruptcy. Such a business would also be risking a takeover of its assets to make good for the substantial amounts due. But for the PLPN it seems that there is nothing to worry about!

All this points to a major intended deficiency of the legislation regulating the financing of political parties. It has been repeatedly pointed out that the PL and the PN are continuously using their companies as a convenient front to go around the political party financial regulatory framework.

As expected PLPN are in denial. The PL insists that its companies have not entered into a deal with Yorgen Fenech. The PN on the other hand insist that all is above board. Yet they continuously fail to play by the rules. Audited accounts for their companies have not been presented for many years. As a result, there is no way to verify whether and to what extent the PLPN commercial companies are innocent of the charges that they are being continuously used to circumvent the rules regulating the funding of political parties.

The rules regulating companies owned by political parties should be tightened up. Such companies should be scrutinised within the framework of the Financing of Political Parties Act of 2015. Real-time reporting is essential in order to ensure that such companies are not used any more to circumvent the rules.

As things stand, at this point in time, the PLPN and their commercial companies have appropriated a substantial loan without authorisation. How’s that for good governance? Another contributory factor to grey-listing?

PLPN cannot solve this. They are an integral part of the problem.

Only the election of Green MPs can clean up this PLPN mess.

published in The Malta Independent on Sunday : 12 September 2021