Il-kwantità ta’ nies li kien hemm jiċċelebraw ma Joseph Muscat fin-Naxxar, Ħaż-Żebbuġ u r-Raħal Ġdid illum, juru li għad hawn bosta li għadhom ma fehmux il-gravità tas-sitwazzjoni li fiha jinsab il-pajjiż illum. Bosta minnhom, jekk tistaqsihom, bla ebda dubju jgħidulek li Joseph ma missux irreżenja. Miskin. Jaħassra. X’għamel?

Joseph irreżenja, però għadu hemm, għalissa.

Irreżenja biex jerfa’ r-responsabbiltà politika għas-sitwazzjoni kurrenti li żviluppata mill-investgazzjonijiet fuq il-qtil ta’ Daphne Caruana Galizia. Qed jirreżenja ukoll minħabba ta’ madwaru li ma kellux il-kuraġġ li jkeċċihom, meta żbaljaw bil-kbir kif jidher mid-dokumentazzjoni kollha konnessa mal-Panama Papers.

Bil-mod kif qed jitkellem Joseph Muscat fil-lokalitajiet fejn qed imur qed iwassal messaġġ ħażin. Qed jgħid li ma għamel xejn ħażin. (Matul il-gimgħa kien qalilna li qed jerfa’ fuq spallejh dak li għamel ħaddiehor.)

Fil-fatt l-affarijiet huma kompletament bil-maqlub: tant mexa ħażin li l-imġieba tiegħu kontinwament qed twassal il-messaġġ li xejn m’hu xejn. Għal Joseph u għal dawk li iddemostraw illum, huma l-ġurnalisti li żbaljaw meta jirrappurtaw u jikkummentaw dwar il-ħmieġ. Għax Joseph ma għamel xejn ħażin.

Kieku Joseph Muscat ħa passi meta kellu jeħodhom, u keċċa lil Keith Schembri u lil Konrad Mizzi, hekk kif ħarġu l-istejjer, probabbilment li s-sitwazzjoni illum hi ferm differenti.


Ċertament Joseph u l-Partit Laburista m’għandhomx x’jiċċelebraw. Kien ikun iktar addattat kieku mar jinħeba.

Malta deserves better

Reading through the reports on the testimony of Melvin Theuma – who turned state evidence in the criminal investigation on Daphne Caruana Galzia’s assassination – all of us feel shocked and betrayed.

We are shocked by the ruthlessness displayed and we feel betrayed by Joseph Muscat, who put his faith in a bunch of criminals. Malta certainly deserves better – much better, in fact.

As names of various individuals and their actions were being mentioned in the magistrate’s hall, one lingering question is whether these individuals were aware of how their specific action fitted into the general jigsaw puzzle. In addition, what did the boss know about what was going on around him? Was he kept in the dark by his underlings, or was he given discreet briefings?

As yet there is no answer:suspicions are just suspicions. They will, however, linger on until interrogation marks are resolved. In time, we may get to know more, especially when all the rats have fled the sinking ship.

This nation will not rest until all is known, because our trust has been betrayed.

The facts as to who commissioned the assassination and who carried it out are becoming clearer. It is also being established without a shadow of a doubt that the interrogation rooms at Police Headquarters would have more from the functions of a sieve that the secure place one would expect them to be.

In his testimony, Melvin Theuma shocked quite a few people when he stated that he was aware of the planned police raid at the Marsa potato shed days before it was actually carried out. In fact, he stated that he was instructed by the master-mind to alert those who carried out the assassination to this important matter. He was even aware when Vincent Muscat – il-Koħħu – started spilling the beans.

I find it hard to believe that the police tried to sabotage their own investigations. There were others who may have had an interest in sabotaging these investigations from the sidelines. Most probably they are still around, with a visible silhouette that inconclusively indicates their identity.

Likewise, what is the purpose of tapping phones if the person under observation is alerted? Yorgen Fenech specifically stated in the witness box on Thursday that he was alerted by Keith Schembri to the fact that his electronic communications were being monitored.

This is the background which compelled a helpless Cabinet to demand an answer as to why Keith Schembri, the former Chief of Staff at the Office of the Prime Minister, was not properly investigated. A proper interrogation of Mr Schembri would undoubtedly lead to results if it can be done without Joseph Muscat breathing down the necks of the police force. This is an important reason why Joseph Muscat should resign with immediate effect: to ensure that it is not in any way possible for him to protect his friend Keith Schembri.

Ministers and Parliamentary Secretaries should, however, be aware that they have directly contributed to the development of this crisis, both individually as well as collectively as the Cabinet, because they failed to take decisive action regarding the publication of the Panama Papers. Their failure to act at that point in time was a clear signal that anything goes.

The law should apply to everyone. This, however, is not the case because so far Keith Schembri has been lurking in the shadows for far too long. In a national address last Tuesday, President George Vella implored us to be rational and not emotional in this very difficult time. Malta deserves better. It is what we should strive for.

published in The Malta Independent on Sunday : 8 December 2019

Reflections on a turbulent week

As things stand, at this point in time Yorgen Fenech may end up carrying the can on his own. So far, apparently, none of the co-conspirators indicated in the information making the rounds will be joining him in the next stage of the investigation into the assassination of Daphne Caruana Galizia.

Many people are flabbergasted that Keith Schembri was released by the police without any indication as to whether or not he would be further investigated. Undoubtedly, at some point, the police would be required to explain in Court why they arrived at such a conclusion. In particular, as emphasised by the Caruana Galizia family statement to the press on Friday, at least two witnesses and multiple pieces of physical evidence implicate Schembri’s involvement without there being any need for a Yorgen Fenech pardon.

The police have a lot of explaining to do, even within the context of the revelations of the recordings by Melvin Theuma who has turned state evidence.

The declarations by Yorgen Fenech that there were continuous leaks from the ongoing police investigation that ended exclusively in the hands of Keith Schembri is cause for serious concern because, if proved correct, it would signify outside and inappropriate influence on the investigative responsibilities of the police. This undermines the whole investigative process.

The web of illicit ties between politics and business and the associated corruption is at the centre of this investigation into the assassination of Daphne Caruana Galizia. It goes back to just a few days after the Labour government, led by Joseph Muscat, was voted into office in March 2013.

This web links the Labour government – led by Muscat – to the principal actors in this week’s drama. We do remember that this developed through the setting up of secret Panama companies with the specific intent of receiving tainted money from projects then on the drawing board.

17Black, the Dubai offshore company owned by Yorgen Fenech, was later set up for the purpose. The sum of €150,000 per month, equivalent to €5,000 per day, was mentioned in emails that saw the light of day as part of the Panama Papers.

This week began with a summit at Burmarrad on Monday evening between Joseph Muscat and his Chief of Staff on the eve of Keith Schembri’s four-day questioning at Police Headquarters. Through selected leaks we have learnt of Mafia style communication between Keith Schembri and Yorgen Fenech in the interrogation rooms using a medical doctor as an intermediary: Schembri implored Yorgen Fenech not to reveal anything on him and, in return, he promised his help. This plea apparently misfired as, according to the leaks, Fenech built up his case describing Keith Schembri as the master-mind behind the assassination. The interrogators were apparently not impressed because, for the time being, Schembri was sent back home.

One of the reasons why this investigation has been dragging on for far too long is that, most probably, those who planned and commissioned the assassination of Daphne Caruana Galizia had the ability to cover their tracks, at times with the assistance of access to classified information.

As this saga seems to be drawing to an end, it is imperative that we draw from it the appropriate lessons.

published on The Malta Independent on Sunday: 1 December 2019

Il-Korruzzjoni m’għandhiex kulur

Id-dibattitu dwar il-korruzzjoni fil-gżejjer Maltin ma jispiċċa qatt. Il-korruzzjoni m’għandhiex kulur u tiddependi ħafna fuq kultura ta’ klijenteliżmu u fuq istituzzjonijiet dgħajfa jew imdgħajfa. Sfortunatament, ma teżisti l-ebda rieda politika biex dan ikun indirizzat.

Ma tidher l-ebda azzjoni ċara u konkreta li tikkorrispondi mad-diskors pubbliku u ma jaqta’ xejn dwar tolleranza żero għall-korruzzjoni.

Ir-resistenza tal-Ministri Edward Scicluna, Konrad Mizzi u Chris Cardona biex tinfetaħ inkjesta kriminali minn maġistrat dwar l-allegazzjonijiet tal-kompliċità kriminali tagħhom in konnessjoni mal-ftehim tal-Vitals Global Healthcare dwar l-isptarijiet ma tinftiehemx. Prim Ministru b’tolleranza żero għall-korruzzjoni kien jitlob l-inkjesta hu stess. Inkella kien ikun minn ta’ quddiem biex jappoġġja t-talba li saret.

Kieku l-Partit Laburista kellu tolleranza żero għall-korruzzjoni ilu li bagħat lil Konrad Mizzi u lil Keith Schembri jixxejru. Il-fatt li l-mexxej Laburista Joseph Muscat ma aġixxiex b’dan il-mod ifisser li hu dispost li jagħlaq għajnejh għall-irregolaritajiet li jagħmlu ta’ madwaru. F’dawn iċ-ċirkustanzi, Partit Laburista b’tolleranza żero għall-korruzzjoni kien jiġbed widnejn il-mexxej tiegħu u jwissieh li jiemu magħduda jekk ma jibdilx triqtu. Il-fatt li l-Partit Laburista ma għamel xejn minn dan ifisser ħaġa waħda: li korruzzjoni hi tollerata.

Ikun għaqli jekk niftakru illi fl-istadji inizzjali tal-iskandlu magħruf bħala Panama Papers diversi membri tal-Grupp Parlamentari tal-Partit Laburista irreaġixxew għal dan kollu bil-bibien magħluqa.

F’April u Mejju tal-2016 kienet ħarġet l-istorja li mhux il-Partit Laburista kollu hu illuppjata dwar allegazzjonijiet ta’ korruzzjoni. Id-dibattitu intern, kif irrappurtat fil-medja, kien imqanqal, imma ma wassal għall-ebda azzjoni konkreta.

Il-Partit Nazzjonalista, għalkemm fl-Opposizzjoni, ma jistax ikun alternattiva għal dan għax minkejja li l-kritika tiegħu hi korretta mhuwiex kredibbli.

Il-Partit Nazzjonalista eleġġa mexxej li ftit li xejn jispira fiduċja fost il-pubbliku. Primarjament dan hu minħabba l-informazzjoni li toħroġ minn rapporti investigattivi dwaru ppubblikati minn Daphne Caruana Galizia, informazzjoni li turi kif diversi drabi ma aġixxiex b’mod korrett. Il-politku ma’ għandux il-possibilità li jagħżel meta jixgħel is-switch tal-imġieba etika. L-imġieba tal-politiku meta ma jkunx taħt il-lenti tal-opinjoni pubblika hi l-iktar indikattiva dwar x’isarraf. Il-kaz ta’ klijenti tal-uffiċju legali ta’ Adrian Delia li bbenefikaw minn dħul minn briedel f’Londra huwa eżempju prattiku ta’ dan. Meta l-informazzjoni kienet ippubblikata Delia fetaħ libell imma wara mhux biss irtirah imma ma ħa l-ebda passi alternattivi biex jisganċa ruħu minn dak li ntqal bl-iswed fuq l-abjad dwaru.

L-istess għandu jingħad dwar ix-xhieda ġuramentata tad-Deputat Nazzjonalista Claudio Grech dwar l-iskandlu taż-żejt liema xhieda ngħatat quddiem il-Kumitat Parlamentari għall-Kontijiet Pubbliċi. Dakinnhar Grech qal li ma kienx jiftakar jekk qatt iltaqa’ ma’ George Farrugia, il-moħħ wara l-iskandlu u li wara ngħata l-maħfra biex jikxef kollox. Il-Kap tal-PN ta’ dakinnhar, Simon Busuttil, bl-ebda mod ma rreaġixxa għal din l-imġieba. Ma ttieħdu l-ebda passi kontra Claudio Grech mill-PN f’dan il-kaz li bosta jqisuh bħala li pprova jevita li jikxef informazzjoni ta’ relevanza għal għarfien aħjar ta’ fatti tal-iskandlu.

Fid-dawl ta’ nuqqas ta’ kredibilità, meta l-Opposizzjoni Parlamentari (kif kostitwita illum) titkellem, l-impatt ta’ dak li tgħid bi kritika tal-Gvern ftit hu effetttiv.

Dan nistgħu narawh ukoll fid-dawl ta’ każi ta’ governanza ħażina li jikkomunikaw messaġġ wieħed: il-PL u l-PN huma pezza waħda. Eżempju ċar ta’ dan hu l-kaz tal-involviment ta’ Mario Demarco fin-negozjati kuntrattwali tad-dB fil-kwalità tiegħu ta’ konsulent legali tal-Grupp dB, meta fl-istess ħin kien Viċi Kap tal-Opposizzjoni u kelliemi għall-Finanzi. Għalkemm Mario Demarco għamel apoloġija pubblika dwar dan meta l-qiegħa kienet saħnet, il-ħsara li seħħet kienet sostanzjali. Il-messaġġ ċar li ġie kkomunikat dakinnhar kien li l-aħjar elementi tal-Opposizzjoni Parlamentari ma kinux kapaċi jiddistingwu bejn l-obbligi pubbliċi u l-interessi privati tagħhom.

Ikun opportun ukoll li niftakru fid-diversi rapporti tal-Awditur Ġenerali dwar abbuż minn propjetà pubblika meta din kienet responsabbiltà politika tad-deputat Jason Azzopardi. Il-PN fl-ebda ħin ma esiġa li Azzopardi jerfa’ r-responsabbiltà politika għall-frejjeġ li ħalla warajh.

Il-governanza ħażina u l-korruzzjoni huma kuġini. Waħda twassal għall-oħra. Xi minn daqqiet hemm min jitfixkel waħda mal-oħra.

Alternattiva Demokratika dejjem kienet ċara. Dejjem kellna tolleranza żero kemm għall-korruzzjoni kif ukoll għall-governanza ħażina. Sfortunatament, la l-PN u l-anqas il-PL ma jistgħu jgħidu l-istess.

ippubblikat fuq Illum : Il-Ħadd 17 ta’ Novembru 2019




Corruption is colour-blind

The debate on local corruption is never-ending. Corruption is colour-blind and is heavily dependent upon a clientelist culture, as well as on the existence of weak or weakened institutions. In addition, unfortunately, there is currently no political will to address either.

The never-ending public utterances on zero-tolerance to corruption are not matched with clear-cut action.

The resistance by Cabinet Ministers Edward Scicluna, Konrad Mizzi and Chris Cardona to the initiation of a magisterial criminal inquiry into the allegation concerning their criminal complicity in the Vitals Global Healthcare Hospitals deal is mind-boggling. A Prime Minister with a zero-tolerance to corruption would have requested the inquiry himself. Alternatively, he should have been the first to support the NGO-requested investigation.

A Labour Party which has a zero-tolerance to corruption would have sent Konrad Mizzi and Keith Schembri packing ages ago. The fact that Labour leader Joseph Muscat did not so act signifies that he is willing to turn a Nelson eye to his colleagues’ misdemeanours. In these circumstances a corruption zero-tolerant Labour Party would have given notice to its leader that his days are numbered if he does not change his ways. The fact that the Labour Party did not so act gives one clear message: it is corruption-tolerant.

It would be pertinent to point out that, in the initial stages of the Panama Papers debate, various members of the Labour Party Parliamentary group reacted behind closed doors. Way back in April and May of 2016, leaks in the media had indicated that not all of the Labour Party is anesthetised in its reactions to allegations of corruption. The internal debate, as then reported, was fierce, but it did not lead to concrete action.

The Nationalist Party, although in opposition, is no alternative to all this, as its criticism, though correct, is not credible.

The Nationalist Party has elected a leader who does not inspire much confidence in the public, primarily as a result of the investigative reports published by Daphne Caruana Galizia which unearthed information that illustrated the various instances in which he acted unethically. Holders of political office have no choice as to when to switch on to an ethical behaviour mode. Their behaviour when they were not under the glaring spotlight of public opinion is most indicative of their ethical worth. A case in point is Adrian Delia’s legal representation of clients benefitting from earnings from London-based brothels in respect of which published information he instituted legal action that he later withdrew. Subsequently he took no action which disproves anything that was published about this brothel business.

Likewise, no action was taken in respect of the sworn testimony of senior PN Member of Parliament Claudio Grech when giving witness in front of the Public Accounts Committee in its inquiry on the oil scandal. Grech had then stated that he did not recollect if he had ever met George Farrugia, the prime mover in the oil scandal, who was eventually pardoned to reveal all. The then PN leader, Simon Busuttil, had not reacted to this behaviour and no action whatsoever was initiated against Claudio Grech by the PN in what most consider a case of avoiding spilling information of relevance.

In view of its lack of credibility, whenever the Parliamentary Opposition – as presently constituted- speaks up, the impact of what has been revealed about Government’s dubious practices is severely diluted.

This could be viewed also with reference to serious issues of bad governance which communicate one clear message: they are cut from the same cloth. A case in point is Mario Demarco’s involvement in the dB contract negotiations as legal advisor to the dB Group, at a time when he was Deputy Leader of the Opposition and its spokesperson on Finance. Though Mario Demarco issued a public apology when the matter made headlines, the damage done was substantial. The clear message conveyed was that the better elements of the Parliamentary Opposition are incapable of drawing a line between their public duties and their private interests.

We may also deem it fit to remember the various reports issued by the Auditor-General on the mis-management of government property. At the time, this was the political responsibility of the Hon Jason Azzopardi but at no time was he asked by his party to shoulder political responsibility for the mess that he left behind.

Bad governance and corruption are cousins; one leads to the other and at times one is easily mistaken for the other.

At Alternattiva Demokratika we have always been clear: we are zero-tolerant in respect of both corruption and bad governance. Unfortunately, the same cannot be said of the PN and the PL.

published on The Malta Independent on Sunday: 17 November 2019

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 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 wrong doing. 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 PEP 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 its 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

The budget: beyond the €s

Liza Minelli’s song “Money makes the world go round” is the underlying theme of the Budget speech delivered by Finance Minister in Parliament last Monday. The message driven home was that money and the accompanying affluence clearly indicate that we have never had it so good and that handouts to all are not a problem, both to those who need them, and, more importantly to those who don’t.

Today, taxation is a dirty word in our political lexicon: hence, it was suggested that the message that no increases in existent taxes or new taxes have been proposed is a positive one by the Honourable Minister. Handouts are for all, almost. First for those in need, secondly for most of the rest. The dictum “from each according to his means, to each according to his needs” no longer has any significance when trying to understand the political philosophy underlying the budget of this “labour” government.

Taxation collected in Malta apparently only has some significance when taxing foreign companies operating outside Maltese territory but having some small office, or just a letterbox, on this rock. This is done so that they can avail themselves of reduced taxation rates, substantially lower that those payable in the countries where they operate.

Similarly, companies operating in the financial services sector benefit from a tax package which offers them substantial savings on their tax bills in order to entice them to set up shop.

The government thinks it is smart, but all it is doing is encouraging tax avoidance. Malta’s message is clear: those who want to avoid tax in their country are welcome as long as they are prepared to pay a small part of the taxes avoided to the Maltese exchequer.

In this respect, the case study entitled “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” published by the Green Group in the European Parliament around two years ago is indicative. In that study, it was concluded that BASF, the German chemical giant with its headquarters in Ludwigshafen, used mismatches in national tax systems in order to avoid paying its taxes. It is estimated that, over a five-year period spanning 2010 to 2014, BASF avoided the payment of close to one billion euros in taxes, paying instead a small amount of the taxes avoided, in gratitude for this wonderful opportunity made possible by the Maltese governments, blue and red.

In this context the Finance Minister’s declaration against tax evasion, tax avoidance and money laundering is deemed mere rhetoric. It has to be viewed in the context of the Panama Papers saga, as well as the established fact that a Cabinet Minister and the Chief of Staff in the Office of the Prime Minister set up companies in Panama, a tax haven, and no punitive action was taken against them. With this background, the Minister’s sanctimonious declaration is in no way credible.

The Budget proposals strengthen the social safety net as it assists the vulnerable financially. However, the quality of life is not measured solely by financial metrics. The Budget has various green gaps that affect our quality of life.

The welfare of cars assumes an importance over human quality of life, as government considers it is important to widen and improve roads in order to facilitate the passage of cars, thereby aiming at reducing congestion. An inverted sense of logic: reduction of the number of cars on our roads should have been the target as that is the real and actual problem. Widening roads and improving road infrastructure with flyovers and underpasses only serves to grow the number of cars on our roads, thereby increasing the problem. Providing and facilitating alternative transport is the only solution. Paying lip service to alternative means of transport but simultaneously financing an exponential
increase of the problem signifies that we still have to learn the ABC of transport policy.

The government’s own transport master-plan places considerable emphasis on the need to reduce cars from our roads but it seems that the government is not interested.

Therefore, we have a government which is more interested in the welfare of cars than in our quality of life.

This is just one example. There are countless of others.

The Budget loses an opportunity to make a lasting difference in a number of areas important for our quality of life that goes beyond finances.

published (online) at Malta Independent

Il-baġit : lil hinn mill-€s

Id-diska ta’ Liza Minelli “Money makes the world go round” donnha li hi t-tema li madwarha hu minsuġ id-diskors tal-Baġit li nqara mill-Ministru tal-Finanzi nhar it-Tnejn fil-Parlament. Il-messaġġ ċar li wasal fi djarna kien li l-flus u l-“ġid” li hawn jagħmlu possibli li tirċievi ċekk id-dar, kemm jekk għandek bżonnu kif ukoll jekk m’għandekx.

F’dawn iż-żmienijiet il-kelma taxxa donna saret kelma moqżieża fid-dizzjunarju politiku: għalhekk ġie suġġerit li n-nuqqas ta’ taxxi ġodda, inkella ta’ żieda fit-taxxi eżistenti kien element pożittiv fid-diskors tal-Onorevoli Ministru. Ċekkijiet għal kważi kulħadd. L-ewwel għal dawk li għandhom il-ħtieġa u mbagħad għall-parti l-kbira tal-bqija. Dak li kien jingħad li “jittieħed mingħand kull wieħed skont ma jiflaħ, u jingħata lil kulħadd skont il-ħtiġijiet tiegħu” donnu li ma għandu l-ebda piz illum meta nippruvaw nifhmu l-filosofija politika li fuqha hu mfassal dan il-baġit ta’ Gvern “Laburista”.

It-taxxa li tinġabar f’Malta donnha li hi utli biss meta tinġabar mingħand kumpaniji barranin li fil-waqt li joperaw barra mit-teritorju Malti jkollhom uffiċċju żgħir jew sempliċi letterbox f’Malta. Dan biex ikunu jistgħu jibbenefikaw minn rati ta’ taxxa sostanzjalment iktar baxxi minn dawk li jkunu soġġetti għalihom fil-pajjiżi fejn joperaw.

Diversi kumpaniji fis-settur tas-servizzi finanzjarji ukoll jibbenefikaw minn rati ta’ taxxa li bihom jiffrankaw sostanzjalment minn dak li jħallsu band’oħra.

Il-Gvern mingħalih li għamel opra. Fir-realtá qed jibgħat messaġġ li Malta tilqa’ li min irid jevadi t-taxxa f’pajjiżu, kemm-il darba jkun lest li jħalli xi ħaġa minn dak li jiffranka fil-kaxxa ta’ Malta!

F’dan il-kuntest l-istudju intitolat Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance. ippubblikat mill-Grupp tal-Ħodor fil-Parlament Ewropew madwar sentejn ilu jispjega b’mod ċar x’inhu jiġri. F’dan l-istudju ġie konkluż li l-BASF, ġgant Ġermaniz fil-qasam tal-industrija kimika ibbazat f’Ludwigshafen, jagħmel użu minn differenzi fis-sitemi nazzjonali tat-taxxa biex jevita milli jħallas it-taxxi dovuti. Huwa stmat li, tul il-ħames snin bejn l-2010 u l-2014, BASF evitaw madwar biljun euro fi ħlas ta’ taxxi. Minflok ħallsu ammonti ferm inqas, b’ħajr lill-gvernijiet Maltin (blu u ħomor) talli għinhom jevitaw dawn it-taxxi kollha.

F’dan il-kuntest id-dikjarazzjoni tal-Ministru tal-Finanzi kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jidhru dak li fil-fatt huma: eżerċizzju ta’ retorika. Inżommu f’moħħna ukoll il-kaz tal-Panama Papers, li kien stabilixxa l-fatt li membru tal-Kabinett u ċ-Chief of Staff fl-uffiċċju tal-Prim Ministru kellhom kumpaniji fil-Panama, pajjiż rinomat għall-evażjoni tat-taxxa, u dwar dan ma kienu ittieħdu l-ebda passi kontra tagħhom. Fid-dawl ta’ dan, id-dikjarazzjoni ta’ “qdusija” da parti tal-Onorevoli Ministru hi nieqsa minn kull kredibilitá.

Il-proposti tal-Baġit isaħħu ix-xibka soċjali u dan billi jgħinu finanzjarjament lill-vulnerabbli. Imma l-kwalitá tal-ħajja ma titkejjilx biss f’termini ta’ flus. Fil-Baġit hemm bosta miżuri ambjentali nofs leħja.

Il-ħarsien tal-karozzi huwa iktar importanti mill-kwalitá tal-ħajja għalina. Il-Gvern jikkunsidra li hu iktar importanti li jwessa’ t-toroq biex jiffaċilita ċ-ċaqlieq tal-karozzi u b’hekk jipprova jnaqqas il-konġestjoni. Loġika rasha l-isfel. Il-mira kellha tkun it-tnaqqis tal-karozzi mit-toroq tagħna għax dik hi l-problema. It-twessiegħ tat-toroq u t-titjib tal-infrastruttura bil-kostruzzjoni ta’ flyovers lil hawn u lil hemm iwassal biss għaż-żieda ta’ karozzi fit-toroq tagħna u b’hekk tikber il-problema tal-konġestjoni. L-unika soluzzjoni hi li jkun inkoraġġit bis-serjetá t-trasport alternattiv. Il-Gvern qiegħed fl-istess nifs jinkoraġixxi kemm lit-trasport alternattiv kif ukoll iż-żieda fenomenali ta’ karozzi: dan ifisser li għadu ma tgħallem xejn. Wara kollox huwa l-pjan nazzjonali tat-trasport imfassal minn dan il-Gvern stess li jpoġġi quddiemna l-mira tat-tnaqqis tal-karozzi mit-toroq tagħna. Imma jidher li l-Gvern qed iwarrab il-pjani tiegħu stess.

L-Gvern hu iktar interessat mill-ħarsien tal-karozzi milli mill-ħarsien tal-kwalitá tal-ħajja tagħna lkoll.

Dan hu biss eżempu wieħed. Hemm bosta oħrajn.

Il-Baġit qed jitlef l-oportunitá li jagħmel differenza f’numru ta’ oqsma fejn li troxx il-flus mhux biżżejjed.


Ippubblikat fuq Illum: Il-Ħadd 28 t’Ottubru 2018

Undermining the rule of law

The “rule of law” is a basic democratic principle codified in the laws of democratic countries.

We are all servants of the law in order to be free and in a democracy, the law should apply to one and all without exception. A weak “rule of law” thus results in less and less democracy until one is left with only a free-standing façade.

The law is there to be observed: it should be a constraint on the behaviour of individuals as well as on that of institutions. All individuals ought to be subject to the same laws, whereas institutions are there to protect us all, not just from ourselves but also from all possible attempted abuse of authority by the institutions themselves.

It is within this context that the report of the ad hoc delegation of the Committee of Civil Liberties, Justice and Home Affairs of the European Parliament has to be considered. The report is an illustration of how others see the state of our democracy, even though at points it may be inaccurate.

The delegation’s brief was to investigate “alleged contraventions and maladministration in the application of Union law in relation to money laundering, tax avoidance and tax evasion”.

The observations and conclusions of the delegation in its 36-page report are certainly not edifying. The common thread running through the different pages of the report is that in Malta there are more masters of the law than servants; this is how others see us.

In my opinion they are not far off the mark. The report repeatedly emphasises the point that the law should be observed in both letter and spirit.

The institutions in Malta are very weak. I would add that they are weak by design, in other words they are designed specifically to genuflect when confronted by crude political power. This is reflected both in the type of appointees as well as in the actual set-up of the institutions which are supposedly there to protect us.

The above-mentioned report observes, for example, that none of the Financial Intelligence Analysis Unit (FIAU) reports on Maltese politically exposed persons (PEPs) were investigated by the Police, notwithstanding the fact that the said reports had been forwarded to them “for any action the Police may consider appropriate”.

Is it too much to expect that the police do their duty in at least investigating? The fact that no such investigation was carried out drives home the clear unequivocal message that for the police, PEPs are not subject to the law like any other person. The EU Parliament report is very clear as to why such investigations are essential. In fact it is stated that: “Persons perceived to be implicated in serious acts of corruption and money- laundering, as a result of Panama Papers revelations and FIAU reports, should not be kept in public office and must be swiftly and formally investigated and brought to justice. Keeping them in office affects the credibility of the Government, fuels the perception of impunity and may result in further damage to State interests by enabling the continuation of criminal activity.”

The question to be asked is: why is this possible? Why do Maltese authorities tend to bend the rules or close an eye here and there?

You may find an indication as to why this is so in two small incidents occurring in Malta this year. These illustrate the forma mentis of the Maltese “authorities”.

The first example is associated with the fireworks factory at Iż-Żebbiegħ. After 30 years in Court the rural community of iż-Żebbiegħ won a civil case as a result of which a permit for a fireworks factory was declared null and void by the Court of Appeal. The government reacted by rushing through Parliament amendments to the Explosives Ordinance. These amendments with approved by Parliament with the full support of the Opposition. As a result, notwithstanding the decision of the Court of Appeal, a permit for the fireworks factory can still be issued.

The second example is still “work in progress”. The Court of Appeal has, in the application of rent legislation, decided that the Antoine de Paule Band Club in Paola was in breach of its lease agreement. As a result the Court of Appeal ordered the eviction of the band club from the premises they leased within four months.

The government reacted by publishing proposed amendments to the Civil Code, as a result of which the eviction ordered by the Court of Appeal will be blocked.

These are two examples of the government reacting to decisions of our Courts of Law by moving the goalposts – with the direct involvement of the Opposition. The public reactions to these two cases have been minimal. Maltese public opinion has become immune to such “cheating” and bending of the rules because this method of operation has become an integral part of the way in which our institutions function. The Opposition is an active collaborator in this exercise that undermines the rule of law in Malta.

Is it therefore reasonable to be surprised if this “cheating” and bending of the rules is applied not just in minor matters but in very serious ones too? Moving the goalposts whenever it is politically expedient is, unfortunately, part of the way in which this country has operated to date. It is certainly anything but democratic and most obviously anything but respectful towards the rule of law.

published in The Malta Independent on Sunday : 20 May 2018