It is normal for a commercial company to take up a loan from a commercial bank for the purposes of its activities.
But is a commercial company owned by a political party “a normal commercial operation”? In my opinion it is not.
Hence the declaration that business tycoon Nazzareno Vassallo has loaned the sum of €250,000 to a media company belonging to the PN is bad news. It is an additional exercise in the financing of a major political party in Malta by a major player in local business activity.
The terms and conditons of the loan have not been disclosed.
The very existence of this loan proves, if any proof was needed, of how close the Nationalist Party is to the major players in the construction industry.
The Prime Minister and Leader of the Nationalist Party has assured one and all that this did not give rise to any sort of obligation of the Nationalist Party towards Mr Vassallo and his companies. This loan will be paid he said, and very shortly.
I do not know whether and how the loan will be paid. What I know is that public confirmation of this loan has sealed the view of many that business and politics are too close for comfort.
It was known by all that Dr Lawrence Gonzi and his PN have done a great disservice to politics in Malta by promising legislation on regulating the financing of political parties and not keeping to his word. The approval of this loan explains clearly what the Leader of the PN really thinks on the regulation of the financing of political parties.
Alternattiva Demokratika in Parliament after the March 9 elections will be submitting proposals for legislation to ensure that the finances of political parties are transparent and regulated by law.
PN and the PL Members of Parliament, in the outgoing legislature, had for their consideration a Private Member’s Bill on regulating the financing of political parties. They ignored it.
Alternattiva Demokratika will improve that draft and present it for discussion in the new Parliament.
originally published in di-ve.com on Friday March 1, 2013