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

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

The recovery plan and Edward Scicluna’s prickly pears

Earlier this week, EU Commission President Ursula von der Leyen, presented for the consideration of the European Parliament a recovery plan worth €750 billion but which can unleash an investment estimated at €3.1 trillion in the EU economy. Through a combination of loans and grants the EU Commission seeks to integrate the reversal of the economic downturn resulting from the Covid-19 pandemic together with the action required to implement the Green Deal.

The road to recovery will be tough. It is not the case of going back to normal but of going forward to a new normal. Integrating the recovery from the pandemic impacts with climate change action will not be easy but it is essential and cannot be postponed. As emphasised by Euroactive on Wednesday, the road to recovery has plenty of green strings attached. 25 per cent of the funding proposed by the EU Commission is in fact earmarked for climate action.

Finance Minister Edward Scicluna, in his first reaction to the recovery plan, voiced concern on practical climate action measures. It hurts, he says, to address air traffic emissions or shipping pollution. As an island this would impact us substantially. The proposed recovery plan is comparable to prickly pears, he stated. He prefers the status quo: all talk and little walk. Edward Scicluna is not amused by rumblings heard on corporate taxation even though he is well aware that the days of attracting corporations seeking tax havens within the EU may well be numbered.

It is correct to state that we will be impacted substantially. We can however negotiate to reduce such impacts without diminishing our commitment to addressing climate change impacts of the airline and shipping industry. This would mean significant impacts on tourism and trade. These however cannot be avoided as climate change impacts have to be internalised: that is they have to be shouldered by the industries generating them. This is what we promised in the Paris Climate Summit. Promises that we must now honour.

Operation recovery must re-design the future. It must not be just an economic recovery or an environmental rebirth. It must also be a recovery of practical solidarity all over the Union. What Edward Scicluna views as prickly pears are in fact instruments of solidarity.

Solidarity is not just what we rightly cry for when immigrants crash through our borders. Solidarity is what we ignore when Malta insists on being attractive to tax evaders: those who pay peanuts to the Maltese exchequer in order to avoid paying billions elsewhere. The issue of tax harmonisation on an EU level is the sensible response to the tax haven fiscal policies of Malta, the Netherlands, Luxembourg, and Ireland.

Oxfam in its 2019 report entitled “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” emphasises that “Ireland, Luxembourg, Malta and the Netherlands are among the most significant tax havens in the world, enabling some of the biggest corporations to pay minimal amounts of tax. For example, currently, international tax rules allow Vodafone Group Plc to allocate nearly 40% of its taxable profits to Malta and Luxembourg.” We have also seen reports on BASF clearly explaining how the German chemical giant avoids paying taxes due. The European Greens report “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” published in 2016 had outlined how BASF had successfully avoided close to a billion euros in tax, paying just a small amount thanks to Maltese governments blue and red.

The recovery must be primarily ethical before being economic and environmental. Regenerating our values should be a priority higher on the list than the regeneration of our coffers, currently dishing out dirty money originating from the sale of citizenship schemes. Monies collected from the likes of Russian billionaire Boris Mints, Egyptian national Mustafa Abdel Wadood, Chinese billionaire Liu Zhongtian, Russian businessman Pavel Melenikov and Israeli Anatoly Hurgin, who slipped through what is described as a rigorous due diligence process and gain Maltese citizenship only to be prosecuted in different jurisdictions for various crimes primarily fraud and money laundering.

It is indeed telling that in time of need Finance Minister Edward Scicluna is dependent on monies originating from such dubious sources! It would not be an exaggeration to state that he is dependent on the proceeds of crime.

In her reaction to the EU Commission proposals Evelyne Huytebroech co-Chair of the European Greens emphasised that the EU Commission’s proposal together with the proposals of the EU Parliament and the Franco-German initiative all foresee a mutualised debt instrument: a major breakthrough for European solidarity. Solidarity is constructed slowly and painfully, while Edward Scicluna juggles with his prickly pears.

published in The Malta Independent on Sunday : 31 May 2020

Il-kontabilità ……….. taħt l-effett tal-loppju

Il-Kummisarju tal-Ambjent u l-Ippjanar fl-uffiċċju ta’ l-Ombudsman, iktar kmieni din il-ġimgħa ikkonkluda li mhu affari ta’ ħadd jekk membri tal-Bord tal-Awtorità tal-Ippjanar jattendux jew le l-laqgħat tal-Bord. Dik biċċa tagħhom: hi responsabbiltà tagħhom dwar kif jaġixxu biex iwettqu r-responsabbiltajiet tagħhom. Meta għaldaqstant, Jacqueline Gili kienet pprovduta bis-servizz ta’ ajruplan privat biex ikun iffaċilitat li hi tattendi għal-laqgħa tal-Bord tal-Awtorità tal-Ippjanar li fiha kienet diskussa u approvata l-monstrosità tal-dB Group f’Pembroke kien hemm indħil mhux permissibli fil-proċeduri tal-istess awtorità.

Is-Sur Johann Buttigieg, Chairman Eżekuttiv tal-Awtorità tal-Ippjanar, ikkonferma pubblikament li d-deċiżjoni li jġib lil Jacqueline Gili bil-ajruplan privat minn Catania, u jeħodha lura Catania biex tkompli tgawdi l-btala mal-familja tagħha, kienet deċiżjoni tiegħu. F’pajjiż fejn il-governanza tajba hi pprattikata, mhux ipprietkata biss, is-Sur Buttigieg kien jirreżenja immedjatament, inkella kien jitkeċċa bla dewmien hekk kif l-aħbar kienet magħrufa pubblikament. Dan apparti mid-dell kbir li nxteħet fuq il-validità tad-deċżjoni li ttieħdet bħala riżultat ta’ dan l-indħil fil-ħidma tal-Bord.
Imma, huwa fatt magħruf li l-Awtorità tal-Ippjanar mhiex kapaċi tiddeċiedi fuq kaz daqshekk ċar ta’ tmexxija ħażina. M’għandiex il-kuraġġ li taġixxi.

Ma nistgħux nistennew imġieba mod ieħor. Dawk maħtura fl-awtoritajiet pubbliċi huma kkundizzjonati dwar kif iġibu ruħhom mill-mod kif jaraw lill-politiċi li jkunu ħatruhom iġibu ruħhom. U ngħiduha kif inhi: ma tantx għandhom eżempji tajba fuq xiex jimxu.
L-istorja tal-Panama Papers hi waħda relattivament riċenti. Il-Prim Ministru Joseph Muscat, malli sar jaf li l-Ministru Konrad Mizzi u ċ-Chief of Staff tiegħu Keith Schembri, waqqfu kumpaniji fl-Amerika Ċentrali, fil-Panama, li hi rinomata bħala post fejn taħbi l-flus u tevita t-taxxi, flok ma keċċihom minnufih, qiesu qagħad jiggusthom daqslikieku ma ġara xejn. Dwar x’seta ġara iktar mill-kumpaniji ta’ Mizzi u Schembri u t-tielet kumpanija misterjuża (Egrant), s’issa għad ma nġiebu l-ebda provi. Dan intqal mill-Qrati repetutament, avolja d-deċiżjonijiet tal-Qrati ġew interpretati b’mod li qieshom naddfu lil uħud assoċjati mal-politika minn kull ħtija possibli. Il-fatti huma mod ieħor, kompletament differenti.

S’issa, bla dubju, hemm assenza ta’ provi kredibbli li jindikaw xi ħtija kriminali. Imma ma nistgħux ngħidu l-istess dwar l-imġieba ta’ dawk involuti. Il-provi magħrufa juru bl-iktar mod ċar li tal-inqas hemm imġieba żbaljata u mhix etika u dan minnu nnifsu jiġġustifika sanzjonijiet politiċi.

Dan ma japplikax biss għal dawk il-persuni li huma esposti għall-politika u li issemmew fil-Panama Papers. Japplika ukoll għal xenarji differenti f’kull kamp politiku.

Fuq livell kompletament differenti, jiena diversi drabi għamilt referenza għal tliet rapporti tal-Awditur Ġenerali dwar ir-responsabbiltajiet politiċi ta’ Jason Azzopardi, ilkoll konnessi mal-amministrazzjoni ta’ art pubblika. F’kull wieħed minn dawn it-tliet rapporti l-ex-Ministru Jason Azzopardi kien iċċensurat b’qawwa kbira. Ilkoll niftakru meta f’Ottubru 2017 waqt laqgħa pubblika tal-Kumitat Parlamentari għall-Kontijiet Pubbliċi uffiċjal pubbliku kien xehed li l-ex Ministru Azzopardi kien jaf b’dak kollu li kien għaddej. Imma Jason Azzopardi jibqa’ jilgħabha tal-iblah u jagħmel ta’ birruħu li ma kellux idea dwar dak li kien għaddej madwaru.

L-Opposizzjoni s’issa għadha ma ġegħlitux jerfa’ r-responsabbiltà ta’ għemilu. La ġiegħlet lilu u l-anqas lil oħrajn. Bilfors, f’dan il-kuntest, allura wieħed jistaqsi dwar kif l-Opposizzjoni tippretendi li neħduha bis-serjetà meta tkun kritika ta’ ħaddieħor. Għax l-ewwel u qabel kollox, l-Opposizzjoni għandha tkun kapaċi tapplika għaliha dak li ġustament tippretendi b’insistenza mingħand ħaddieħor.

Sfortunatament il-klassi politika presentment fil-ħatra mhiex kapaċi tipprattika dak li tipprietka. Meta l-partiti politiċi fil-parlament huma b’kuxjenza mraqqda, qiesha taħt l-effett tal-loppju, m’għandniex għalfejn niskantaw b’dak li naraw madwarna.

Ippubblikat fuq Illum :13 ta’ Jannar 2019

 

Anesthetised accountability

Earlier this week, the Planning and Environment Commissioner at the Ombudsman’s office held that it is nobody’s business as to whether or not the Planning Authority’s Board members attend Board meetings: this is a matter for their exclusive concern. The provision of a jet plane to encourage and facilitate the attendance of Ms Jacqueline Gili at the PA Board meeting which considered and approved the dB monstrosity at Pembroke is thus considered as an undue interference and influence in the Planning Authority’s operations.

The Planning Authority Executive Chairman Johann Buttigieg is on record as having taken the responsibility for the decision to bring Ms Gili over to Malta from Catania by air and facilitating her return to continue her interrupted family holiday.

In a country where good governance is upheld, Mr Buttigieg would have resigned forthwith and, in the absence of such a resignation, he would have been fired on the spot as soon as information on the matter became public knowledge.

In addition one would also have had to deal with the fallout on the validity of the decision so taken as a result of such an undue interference.

It is, however, well known that the Planning Authority is incapable of reacting to such blatant bad governance. It is common knowledge that it lacks the proverbial balls, making it incapable of acting properly.

But we cannot realistically expect otherwise, because the appointees to public authorities mirror the behaviour of their political masters. We cannot expect accountability from the appointees if those that appoint them continuously try to wriggle out of shouldering their responsibilities. There are, of course, some exceptions.

The Panama Papers saga is recent enough. Instead of firing Minister Konrad Mizzi and his Chief of Staff Keith Schembri on the spot for setting up companies in the Central American tax-haven, Prime Minister Joseph Muscat acted as if nothing of significance ever happened. What could have happened – in addition to the setting up Mizzi’s and Schembri’s companies and the third mysterious one (Egrant) is not so far provable. This has been stated repeatedly by our Courts, although the relative decisions have been repeated misinterpreted as absolving various politically exposed people (PEP) from any wrongdoing. Nothing could be further from the truth.

There is no doubt that, so far, there is an absence of proof indicating potential criminal liability. However, as a minimum, there is sufficient proof in the public domain pointing towards both errors of judgement and unethical behaviour which, on its own, is sufficient to justify immediate political sanctions.

This is not only applicable to all the PEPs featuring in the Panama Papers saga. It is also applicable to other different scenarios across the political divide.

On a completely different level, I refer to the three reports by Auditor-General concerning the political responsibilities of Jason Azzopardi, all three of which deal with the management of government-owned land. In all three cases, former Minister Jason Azzopardi was heavily censored. I remember when a senior civil servant testified during a sitting of Parliament’s Public Accounts Committee in October 2017, in public session, that then Minister Azzopardi was aware of all the goings-on. Yet Jason Azzopardi sanctimoniously plays the idiot and feigns ignorance of the goings-on around his desk.

As yet, the Opposition has not yet held him (and others) to account. The Opposition cannot expect to be taken seriously when it rightly censors others before it musters sufficient courage to put its own house in order.

Unfortunately, the political class currently in office is not capable of practising what it preaches. With such anesthetised political parties, it is no wonder that this country has long gone to the dogs.

published in The Malta Independent on Sunday: 13 January 2019

Encouraging the avoidance of paying tax

The issue as to whether or not  Malta is a tax haven has been brought to the fore once again, as a result of the amendment to the Panama Papers Inquiry Report discussed in the European Parliament earlier this week. The defeated amendment would have seen Malta, Luxembourg, Ireland and the Netherlands labelled by the European Parliament as “tax havens”.

The matter is much more complex. On the one hand it involves tax competition and on the other hand it is a matter of justice in taxation matters.

As has been repeatedly stated, competition on taxation matters is one of the few areas in which small, as well as peripheral, countries in the European Union have a competitive advantage. Alternattiva Demokratika-The Green Party is not in favour of loosing this competitive advantage through tax harmonisation in the EU. However, it has to be used in a responsible manner.

The rules permitting the refund of a substantial amount of tax paid by foreign-owned companies based in Malta is one of the main reasons for the current spotlight. This substantial tax refund effectively reduces the tax paid by such companies from 35% to five per cent and is obviously considered very attractive by a number of companies. The basic question that requires a clear answer is how many of these companies are letter-box companies, that is companies which do not have any part of their operations on Maltese soil?

It would be reasonable to encourage companies to base part of their operations in Malta and, as a result, make use of tax advantages. But in respect of those companies which have not moved any part of their operations to Malta, making use of beneficial taxation arrangements is unreasonable and unjust. It leads to such companies avoiding paying tax in the countries in which they create their profits and consequently avoiding their social responsibilities on paying taxes in the countries that are providing them with the very facilities which make it possible for them to create their wealth.

In a nutshell, Malta is providing these companies with the legal framework to avoid their taxation responsibilities in the countries in which they operate through payment of a fraction of these taxes to the Maltese Exchequer. They pocket the rest.

Hiding behind the EU unanimity rule on tax issues will not get us anywhere, as Ireland has learnt in the Apple case. At the end of the day, the situation is not just about  taxation: it also involves competition rules and rules regulating state aid, as the legal infrastructure encouraging the avoidance of taxation is, in effect, a mechanism for state aid. The is also an issue of tax justice, as a result of which tax should be paid where the profits are generated.

Tax competition has a role to play as an important tool that small and peripheral countries in the EU have at their disposal. No one should expect these countries, Malta included, to throw away the small advantage they have, but it should be clear that this should be used responsibly and in no way should it buttress the urge of multinationals to circumvent the national taxation system in the country where their profits are generated.

Profits should be taxed where they are actually generated and not elsewhere. The EU needs to end – once and for all – not only tax evasion but also tax avoidance resulting from loopholes in national taxation rules. For this to happen, the EU member states must not only be vigilant, but they must also refrain from encouraging tax avoidance through the creation of more loopholes.

Tackling tax evasion and tax avoidance seriously will mean that taxes are paid where they are due, thereby funding the services and infrastructure that is required in a modern, civilised society. This can only happen if more companies pay their dues.

Tax competition need not be a race to the bottom.

published in The Malta Independent on Sunday : 17 December 2017

Xejn m’hu xejn: fir-Republika tal-Banana

 

Għall-Partit Laburista fil-Gvern, jidher li xejn m’hu xejn. Għall-Partit Nazzjonalista fl-Opposizzjoni, fil-pajjiż hawn rieħa taqsam ta’ korruzzjoni li tinxtamm wara kull kantuniera. Tlett snin ilu l-affarijiet kienu bil-maqlub. Dakinnhar għall-Partit Nazzjonalista fil-Gvern kollox kien miexi fuq ir-rubini u għall-Partit Laburista fl-Opposizzjoni l-pajjiz kien qabad it-triq tan-niżla.

Il-vizjoni taż-żewġ partiti politiċi fil-Parlament hi waħda mċajpra. Dak li jagħmlu huma hu kollu tajjeb. Huwa biss dak li tagħmel in-naħa l-oħra li hu ħażin.

Il-Prim Ministru qed jgħidilna li l-Ministru Konrad Mizzi ma għamel xejn ħażin meta akkwista jew irreġistra kumpanija fil-Panama.

Għalfejn ikunu akkwistati jew reġistrati kumpaniji fil-Panama? Jekk tfittxu u taqraw daqsxejn issibu li l-Panama, pajjiż fl-Amerika Ċentrali, huwa ħafna drabi mfittex minn min irid jaħbi l-ġid li jkun akkumula, ikun xi jkun is-sors li minnu dan joriġina. Il-Panama għandha leġislazzjoni finanzjarja żviluppata li tipprovdi fost oħrajn għal eżenzjoni minn kull taxxa lil dawk il-kumpaniji li filwaqt li jkunu reġistrati fil-Panama ma joperawx hemmhekk.

Il-Ministru Konrad Mizzi, u issa żdied miegħu ċ-Ċhief of Staff tal-Prim Ministru Keith Schembri, fil-komunikazzjonijiet tagħhom mal-istampa spjegaw li l-kumpaniji tagħhom (s’issa) la għandhom assi u l-anqas ma għamlu l-ebda transazzjoni. Mizzi qal li l-kumpanija fil-Panama u t-trust assoċjata magħha li qegħda fi New Zealand huma intenzjonati biex jamministraw il-ġid tal-familja fil-waqt li Keith Schembri qed jgħid li da parti tiegħu kellu bżonn alternattiva għal trust preżentement ibbażat f’Malta li l-bank li bħalissa qed jamministrah qed jikkunsidra li jgħaddieh f’idejn ħaddieħor.

L-opinjoni pubblika kemmxet xuftejha għal dawn l-ispjegazzjonijiet għax dawn bl-ebda mod ma jiġġustifikaw il-ħolqien ta’ kumpaniji fil-Panama li ngħiduha kif inhi, iktar huma assoċjati mal-ħabi tal-ġid milli għal xi kwalunkwe skop ieħor. Filwaqt li s’issa ħadd għadu ma ġieb l-ebda prova ta’ xi fondi illeċiti assoċjati ma dawn il-kumpaniji fil-Panama kull min għandu rasu fuq għonqu qed jistaqsi għaliex inħolqot din l-assoċjazzjoni perikoluża minn Mizzi u Schembri.

Tweġiba konvinċenti s’issa ma hemmx. Imma hu ovvju għal kulħadd li l-qasba ma ċċaqċaqx għalxejn.

Il-persuna fil-ħajja pubblika ma tiżbaljax biss meta tikser il-liġi, imma ukoll meta jibgħat messaġġi żbaljati. Hu messaġġ żbaljat dak li qed jibgħatu Konrad Mizzi u Keith Schembri meta qed jassoċjaw ruħhom mal-Panama, pajjiż li l-Unjoni Ewropea tqiesu bħala tax haven, u mal-ħasil tal-flus maħmuġin. Pajjiż li d-dinja demokratika tqiesu bħala wieħed fejn jinħbew il-flus li joriġinaw minn attività illeċita.

Hu żball oħxon tal-Prim Ministru li ma jara xejn ħażin f’dak li hu għaddej. Dan hu rifless tal-kumpass etiku tal-Prim Ministru, u sfortunatament ukoll il-kumpass etiku tal-amministrazzjoni li hu qiegħed imexxi.

Fi kwalunkwe pajjiż demokratiku ieħor, pajjiż li jirrispetta lilu nnifsu, Konrad Mizzi, anke biss bħala riżultat ta’ dak li hu magħruf s’issa, kien ikun xkupat il-barra mill-Kabinett, illum qabel għada. Minflok inħatar bħala Deputat Mexxej tal-Partit fil-Gvern.

Qed insiru pajjiż fejn xejn m’hu xejn, fejn kollox jgħaddi. Fi ftit kliem sirna qiesna Repubblika tal-Banana f’nofs il-Mediterran.

Sal-ponta ta’ imnieħru

Għall-Kap tal-Opposizzjoni Simon Busuttil, il-mod kif żviluppat l-istorja tal-bejgħ taċ-ċittadinanza għall-prezz ta’ €650,000 hi sħaba sewda għax il-Gvern irrombla minn fuq l-Opposizzjoni. Simon Busuttil kompla jgħid li dak li ġara hu ta’ theddida għad-demokrazija.

Il-Gvern wasal għall-konklużjoni li l-iskema tal-bejgħ taċ-ċittadinanza  hi mezz tajjeb biex bih jiġbor il-miljuni għal numru ta’ snin, biżżejjed biex ikollu l-mezzi ħalli jiffinanzja l-programm politiku li jrid iwettaq mingħajr ma jżid taxxi. Jidher li ngħata pariri dwar dan kemm mill-konsulenti tiegħu kif ukoll minn dawk li nirreferu għalihom bħala lobbyists.

Il-Gvern geżwer il-proposta tiegħu fis-segretezza. Fatt li saħħah l-argument li minkejja d-due diligence kollha li jista’ jkun hemm xorta hemm il-possibilita ta’ karattri mhux mixtieqa li japplikaw għal u jakkwistaw din iċ-ċittadinaza.

Li kieku l-Gvern aċċetta s-suggeriment li jneħħi s-segretezza, proposta li saret mill-Alternattiva Demokratika,  mill-Opposizzjoni, kif ukoll mis-soċjeta’ ċivili, argument qawwi kontra din l-iskema taċ-ċittadinanza kien ikun eliminat.

Il-konsegwenza tal-iskema kif approvata mill-Parlament hi li Malta tidher li biex iddaħħal il-flus hi lesta li tiddefendi l-interessi ta’ min ma jridx jikxef l-identita tiegħu.Issa dan kollu jmur kontra r-reputazzjoni li Malta kisbet tul is-snin bħala ċentru finanzjarju serju u ta’ min jafdah. Sfortunatament din ir-reputazzjoni tajba inevitabilment ser tittappan u dan minħabba li s-segretezza tal-iskema taċ-ċittadinanza inevitabilment ser tkun assoċjata mal-idea ta’ tax haven. Dan kollu jista’ jwassal għal impatt negattiv fuq is-servizzi finanzjarji li huma ibbażati f’Malta bħala riżultat ta’ din ir-reputazzjoni tajba. B’mod li dak li l-Gvern idaħħal mill-iskema tal-bejgħ taċ-ċittadinanza jintilef minn banda oħra.

Imbagħad hemm l-issue tal-prinċipji involuti. Fir-realta’ hawnhekk ingħataw messaġġi konfliġġenti. Għax fil-prinċipju hemm qbil maċ-ċittadinanza ekonomika. Id-differenza ta’ opinjoni hi dwar x’inhu meqjus bħala investiment aċċettabbli. Il-Gvern għażel mudell ta’ donazzjoni “żgħira” minn għand numru imdaqqas bħalma hu ipprattikat f’diversi pajjiżi fil-Karibew filwaqt li l-kontro-proposta hi l-mudell Awstrijak ta’ investiment sostanzjali.

Il-kuntrast bejn iż-żewġ mudelli hu li l-mudell li għażel il-Gvern iwassal għall-fondi direttament fil-kaxxa ta’ Malta li dwarhom ikun il-Gvern li jiddeċiedi kif ikunu investiti. Min-naħa l-oħra l-mudell Awstrijak idum iktar biex jagħti r-riżultati. Apparti dan dwar l-investimenti mill-mudell Awstrijak il-Gvern, ftit li xejn ikollu kontroll fuq kif jitħaddem.

Bħalissa l-istampa internazzjonali qed tirrapporta dak li Malta qed toffri għall-bejgħ passaport għall-Unjoni Ewropeja. Nistennew u naraw kif ser jiżviluppaw l-affarijiet u l-konsegwenzi.

L-issue kollha taċ-ċittadinanza hi deċiżjoni politika li ma naqbilx magħha għax hi ibbażata fuq konsiderazzjonijiet ta’ benefiċċju “short term”.  Fil-waqt li l-anqas dan l-impatt “short term” ma hu assigurat għad irridu naraw jekk l-impatt negattiv antiċipat fuq is-servizzi finanzjarji iseħhx. Filwaqt li nixtieq li dan ma jiġrix, issa hu ċar li għandna Gvern li jħares sal-pont ta’ imnieħru.