Switch għal-lista l-griża

Għada it-Tnejn, fil-Parlament, il-Kumitat Permanenti dwar l-Standards fil-Ħajja Pubblika jibda jeżamina ir-rapport  K/032 dwar il-Membru Parlamentari Laburista Rosianne Cutajar. Ir-rapport jeżamina is-sottomissjonijiet li rċieva l-Kummissarju dwar l-Istandards fil-Ħajja Pubblika George Hyzler dwar in-nuqqas ta’ Cutajar li tiddikjara dħul tagħha hi u timla l-formola dwar id-dikjarazzjoni tal-assi meta kienet għadha Segretarju Parlamentari fil-Ministeru tal-Ġustizzja.

Ir-rapport ta’ 45 paġna tal-Kummissarju Hyzler hu akkumpanjat minn żewġ volumi addizzjonali bix-xhieda li fuqha Dr Hyzler fassal id-deliberazzjonijiet u l-konklużjonijiet tiegħu. Hemm ukoll it-tielet volum li mhux aċċessibli għal skrutinju pubbliku. Dan it-tielet volum fih statements tal-bank tal-membru parlamentari Qormija flimkien mac- chats tagħha fuq Whatsapp ma Yorgen Fenech, is-suspettat moħħ wara l-assassinju ta’ Daphne Caruana Galizia.

Il-Prim Ministru Robert Abela ħa deċiżjoni li bħala riżultat tagħha Rosianne Cutajar hi issa definittivament barra mill-Kabinet, ta’ l-inqas f’dawn l-aħħar xhur tal-leġislatura. Iżda għadha qed tinsisti li mhux ser twarrab minn membru tal-Parlament. Qalet li fi ħsiebha tibqa’, anke jekk il-Partit Laburista, s’issa, għad ma ikkonfermax jekk hux ser tkun kandidata u dan in vista tar-rapport dwar l-iStandards fil-Ħajja Pubblika taħt konsiderazzjoni.

Biex jiddefendi lil Cutajar il-Prim Ministur Abela, b’mod li jevita li jikkommetti ruħu iżżejjed, qal li kulħadd għandu jkun trattat l-istess, mingħajr deskriminazzjoni!

Bla dubju Rosianne Cutajar tħoss li ġiet ittrattata ħażin, kemm kemm mhux b’mod inġust!  Għalfejn din il-pressjoni kollha biex tisparixxi mill-ħajja pubblika meta min ammetta pubblikament li evada t-taxxa spiċċa elett Kap tal-Opposizzjoni? Il-ħajja u l-politika f’Malta xejn m’huma ġusti!   

Bernard Grech u Rosianne Cutajar qegħdin fuq l-istess livell fl-imġieba etika tagħhom, imma s’issa huma trattati b’mod differenti.  

Għalfejn, nistaqsi, l-Opposizzjoni Parlamentari ma tapplikax l-istess kriterji lit-tnejn li huma?  Meta l-Opposizzjoni tinsisti li Rosianne Cutajar għandha terfa’ r-responsabbiltà politika għal għemilha kif imfisser fir-rapport tal-Kummissarju Hyzler qed tagħmel sewwa. Għaliex mela ma tkunx konsistenti u tapplika l-istess kriterji għall-mexxej tagħha li dwaru l-investigazzjoni ilha lesta?

Bħal Rosianne Cutajar, Bernard Grech ħaqqu daqqa ta’ sieq għal barra. Dak hu t-trattament ugwali li jixraqilhom.  Il-presenza tagħhom it-tnejn fil-ħajja pubblika hi kontribut ċar għall-presenza ta’ Malta fil-lista l-griża tal- FATF!

Therese Comodini Cachia u Karol Aquilina kienu preċiżi meta emfasiżżaw li r-rapport ta’ George Hyzler jeħtieġ li jkun approvat bla dewmien jekk irridu nwasslu l-messaġġ li qed naħdmu bis-serjetà biex Malta ma tibqax fuq il-lista l-griża tal-FATF.  Nittama li xi darba jifhmu illi meta jkollok persuna li hi evasur tat-taxxa li jistenna li jkun il-Prim Ministru alternattiv fi ftit taż-żmien ieħor, dan ma tantx hu ta’ għajnuna biex nitbegħdu minn din il-lista l-griża. Għadu possibli anke issa li nkunu konsistenti jekk irridu!

Il-ħtieġa li jkollna mġieba aħjar fil-ħajja pubblika mhiex switch li tixgħelu jew titfiegħ fil-mument li nidħlu fil-ħajja pubblika. Tapplika għal kulħadd, dejjem. Mhux biss waqt li aħna attivi fil-ħajja pubblika imma saħansitra sa minn qabel ma jibda l-involviment tagħna.  

Għal din ir-raġuni ngħarblu n-nomini tal-kandidati u l-ħatra tal-uffiċjali minn qabel. Għax m’għandniex nistennew lil min kien jiġi jaqa’ u jqum dwar kif iġib ruħu qabel ma jidħol fil-politika ser jaqbleb is-switch għal imġieba aħjar, hekk kif jidħol fil-politika.

Dan il-każ għandu jservi ta’ sveljarin.

Ippubblikat fuq Illum: il-Ħadd 11 ta’ Lulju 2021

A grey-list switch

Tomorrow, Monday, the Parliamentary Standing Committee for Standards in Public Life will commence the examination of Report K/032 on Labour Party Qormi Member of Parliament Rosianne Cutajar. The report examines submissions received by the Standards Commissioner George Hyzler and points towards the failure by Cutajar to declare income which she received when drawing up her declaration of assets, a declaration which she submitted when she was still a Parliamentary Secretary in the Justice Ministry.

The 45-page report drawn up by Commissioner Hyzler is accompanied by an additional two volumes containing the supporting evidence on the basis of which Dr Hyzler based his deliberations and conclusions. A third volume of evidence has been withheld from public scrutiny. It has been stated that this third volume contains confidential bank statements of the Qormi Labour MP as well as her chats on Whatsapp with Yorgen Fenech, suspected mastermind of the Daphne Caruana Galizia assassination.

Prime Minister Robert Abela has taken a decision as a result of which Rosianne Cutajar is now definitely out of Cabinet, at least for the final months of the current legislature. However, she has stubbornly emphasised that she will not relinquish her Parliamentary seat. She says that she will be back, even though to date her political party has not yet confirmed whether she will be presented as a candidate, in view of the Standards in Public Life report under consideration.

In Cutajar’s defence Prime Minister Abela, in non-committal mode, has emphasised that she will be treated as anybody else, with no favourable treatment.

Undoubtedly Cutajar considers that she has been treated very unfairly. Why should she now be pressured to disappear from public life when a self-confessed tax evader was elected Leader of the Opposition? Life (and Maltese politics) is certainly not fair.  Bernard Grech and Rosianne Cutajar are on an ethically equivalent level yet so far, they are treated differently.  

Why is it, one might ask, that the Parliamentary Opposition adopts two weights and two measures? May I suggest that the Opposition representatives are right in insisting that Rosianne Cutajar should shoulder the political consequences of her actions as detailed in the report of Commissioner Hyzler? Why don’t they be consistent and apply the same criteria to their Leader too?

Like Rosianne Cutajar, Bernard Grech qualifies for the Order of the Boot. That is the equal treatment they should receive. The presence of both of them in local public life is a significant contributor to FATF grey-listing!

Therese Comodini Cachia and Karol Aquilina were spot on when they emphasised that the Hyzler report needs to be approved in order to send out the message that we are truly working on removing Malta from the FATF grey-list.  I hope they also agree that having a tax-evader as an alternative Prime Minister does not help in distancing this country from the FATF grey-list! 

There is still time to be consistent!

The need to upgrade ethical behaviour in public life is not a switch-on switch-off exercise depending on which political party is in government. It is applicable to all of us in politics. Not just while we are active in politics but starting from before the actual involvement itself.

This is the reason why we seek to screen potential electoral candidates and party officials before selection or election. We should not expect that those who do not behave ethically before taking up politics manage to switch to a more “acceptable” behavioural mode on entering politics.  

Let this be a wake-up call!

published in the Malta Independent on Sunday : 11 July 2021

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

Riħa ta’ ħut

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fishy Business

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

published in The Malta Independent on Sunday – 18 April 2021

……….. u wara, marru jieħdu tazza te

……….. u wara, marru jieħdu tazza te!

Jiġifieri, qiesu ma ġara xejn. Hekk jirrakkonta l-Koħħu. Il-bomba splodiet, u wara marru jieħdu te u qagħdu jisimgħu l-aħbarijiet ħa jaraw x’ġara. Bir-reazzjoni li kien hemm dehrilhom li ma marrux tajjeb, setgħu talbu iktar!

Issa qed jgħidulna li l-aħwa Degiorgio ukoll iridu jikxfu. Bil-maħfra jikxfu ħafna iktar, qalu. Anke Ministru tal-lum u ex-Ministru.

L-istorja jidher li imħawda waħda sewwa. L-ismijiet ta’ dawn il-Ministri ilhom jissemmew.

Fil-fatt ilu jingħad li possibilment kien hemm żewġ kuntratti ta’ qtil. Wieħed li dwaru qed nisimgħu bħalissa x-xhieda fil-Qorti u ieħor. Jidher li l-aħwa Degiorgio jista’ jkollhom informazzjoni fuq il-kuntratt l-ieħor li fih qed jgħidu li hemm ex-Ministru involut. Issa ex-Ministri ma hemmx ħafna, jiġifieri mhux diffiċli biex wieħed ikollu idea x’qed jippruvaw jgħidu.

Hi gravi ukoll l-informazzjoni dwar dak li għadu Ministru li s’issa għalkemm ismu ma issemmiex kulħadd jaf għal min qed jgħidu.

Issa x’ser jiġri? Id-Degiorgio jrid ikanta. X’ser jagħmel il-Ministru u l-ex? Imorru jieħdu te ħdejn it-tinda tal-patata!

The octopus in our midst

During the past weeks we have been witnessing the exposure of a web of criminality which has infiltrated and infected all sectors of our society.  Revelations are being made public by instalments, as if a new edition of La Piovra (made in Malta) is being launched.

Information leaking from the Yorgen Fenech investigation as well as from other related investigations has revealed an intricate network which pervades practically all local institutions. Just like the octopus which with its eight long tentacles seeks to control all from far away.

We cannot say that we were not warned about this. At a point in time, it was stated that if Yorgen Fenech falls, all around him will collapse too. One instalment after the other we are realising the extent of control of the octopus.

One witness after another is confirming that the criminal gang under investigation was continuously aware of the different moves of the police investigators, in real time and with substantial notice. Those carrying out the assassination were even aware, with a three-week notice, as to when they were to be arrested. It was sufficient notice, we were told, that enabled them to plan where they would prefer the arrest to take place. They selected the potato shed at Marsa as their preference!

You would undoubtedly remember the first news instalments on Silvio Valletta, then still Deputy Commissioner of Police and in charge of the criminal investigation into the assassination of Daphne Caruana Galizia. He was introduced as Uncle Silvio to Yorgen Fenech’s family. The two men (Silvio and Yorgen), one year after the assassination were on such close terms that on the 29 September 2018, they were together at Stamford Bridge enjoying a game of football: Chelsea playing against Liverpool.

It is no news that Yorgen Fenech has a sharp eye for strategic investment opportunities. He chose his portfolio with care. He invested carefully in Silvio Valletta. Silvio was after all also a member of the Board of the Financial Intelligence Analysis Unit (FIAU). Such focused investments yield handsome dividends. Most probably there is still much more that we do not know yet as to the dividends actually reaped.

These are the methods of the Mafia, a term which we normally use to describe organised crime which is so organised that it infiltrates all layers of the state. The Chief of Staff of the Prime Minister’s Office, the Deputy Police Commissioner, one Cabinet Minister, and a number of others of a lower order were depicted in the testimony to date as being in the service of organised crime. This is as serious as it gets. Whether others higher up were also in the game is still not known for certain yet.

It is not known when the whole truth will be uncovered even though periodically we learn about an additional small bit .

This has been possible because successive governments have been allergic to good governance. The abundance of institutions set up throughout the years have been staffed with a multitude of weak men and women who have generally not been capable of standing up to the exercise of raw power. In the moment of truth, because they were weak, they gave way and allowed the octopus to move unhindered.

The published information, including confidential chats on WhatsApp, with senior officers of the Malta Gaming Authority, the Malta Financial Services Authority, the Planning Authority and others, is another worrying indicator as to how the authorities set up to defend society have been seriously undermined and compromised.

The road ahead is very difficult to navigate.  Undoubtedly, much more is yet unknown. The octopus is still in control.

published in The Malta Independent on Sunday – 21st March 2021

Lingering doubts on return to normal

The more Robert Abela brags that “the institutions are working” the longer doubts linger on. In a situation of normalcy, which we have a right to, there is no room for a Prime Minister addressing a press conference as that of last Tuesday (with a repeat on Thursday morning), on the police investigations into an assassination.

The Commissioner of Police addressed the press twenty-four hours later, on Wednesday. Commissioner Angelo Gafà was right to do so even if he could not give specific and detailed replies to avoid undermining the investigation at such a critical juncture. We expect the Commissioner of Police to inform us as to what is going on under his watch.

Angelo Gafà’s predecessor could not utter a coherent sentence in his press conferences. He left the running of the show to his deputy, known to the assassination prime suspect as Uncle Silvio.

Robert Abela and his predecessor have been breathing down the neck of the Police Force for far too long for them to realise that this is not normal behaviour in a democratic state. During his Tuesday Press Conference Robert Abela made a statement that could have indicated that he was being briefed on the criminal investigation by the Police. In fact, he stated that no politician, current or former, is in any way associated with the assassination investigation of Daphne Caruana Galizia.  This was clearly rebutted by the Police Commissioner on the morrow in his answers to the press when replying to a similar question. He stated that to date no leads to politicians, past and present have been identified. However, he further emphasised that he does not brief the Prime Minister on investigations.

This is the real news from the Police Commissioner conference. Commissioner Gafà is getting one clear message across: the police does not brief the Prime Minister on ongoing investigations! This is a complete U-turn from past police behaviour. We have learnt from detailed testimony in the assassination criminal case that police officials used to brief former premier Joseph Muscat who would generally be accompanied by his Chief of Staff Keith Schembri. Melvin Theuma, the assassination middleman has testified time and again that he was aware of various important aspects of the investigation from his paymaster Yorgen Fenech, Keith Schembri’s friend.

The police, maybe, have learnt the lesson that they have been undermined too many a time by the tenant at Castille Place. In this respect Angelo Gafà’s statement is a much-needed breath of fresh air, a welcome step on the road to normalcy. It is however not enough. Even the tenant at Castille Place must play his part: in such circumstances he should realise once and for all that shutting up is the only way forward.

The assassination of Daphne Caruana Galizia did not happen out of the blue but against a background of institutionalised and industrial scale corruption. The police have made progress on the assassination itself. Instead of trying to take credit for the latest developments in the Caruana Galizia case, it is now up to the Prime Minister to deal with the background that led to the assassination. Ignoring that background and its illicit fruits means endorsing it.

The democratic institutions can function if we let them. If the Prime Minister halts his prima donna behaviour it will definitely help a lot. Until such time there are lingering doubts as to whether a return to normal is on the cards yet.

published on The Malta Independent on Sunday : 28 February 2021

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