Id-demokrazija lokali tista’ tħares l-ispazji urbani mħaddra

Għandna ħtieġa ta’ iktar spazji mħaddra fiz-zoni urbani. L-ispazji mħaddra huma ta’ għajnuna biex insaħħu, u fejn meħtieġ nistabilixxu mill-ġdid il-kuntatt tagħna man-natura. Dawn il-kuntatti ħadu daqqa sewwa riżultat tal-iżvilupp eżaġerat ta’ madwarna. Dan kollu hu ħtija ta’ Awtorità tal-Ippjanar li tat prijorità lill-iżvilupp esaġerat a skapitu tal-kwalità tal-ħajja tagħna lkoll.

Il-Kunsilli Lokali għandhom rwol importanti ħalli jassiguraw il-ħarsien tal-ispazji miftuħa mħaddra biex dawn ma jispiċċawx għalf ħalli jissodisfaw l-aptit tal-iżviluppaturi. Il-parti l-kbira tal-Kunsilli Lokali jsemmgħu leħinhom biex jiddefendu lill-lokalità tagħhom. Sfortunatament ma hemm l-ebda garanzija li jistgħu jaslu u dan għax il-gvern lokali hu biss ittollerat mill-gvern ċentrali.

L-aħħar eżempju, dak tal-Kunsill Lokali tal-Gżira, immexxi b’tant għaqal mis-Sindku Conrad Borg-Manché, għandu jkun ta’ twissija għal kulħadd. Fil-battalja legali li l-Kunsill Lokali tal-Gżira fetaħ dwar il-ġnien pubbliku kontra l-Awtorità tal-Artijiet ġie stabilit b’ċertezza li din l-Awtorità naqset milli twettaq żewġ miżuri bażiċi ta’ governanza tajba: naqset milli tkun trasparenti f’ħidmietha u naqset ukoll milli tikkonsulta mal-Kunsill Lokali tal-Gżira. 

Din hi problema li qed titfaċċa ta’ sikwit min-naħa tal-gvern ċentrali u l-agenżiji tiegħu li għandhom ħabta jibqgħu għaddejjin romblu minn fuq il-kunsilli lokali f’Malta u Għawdex. Il-gvern ċentrali għadu mhux komdu li jaġixxi f’kuntest fejn tirrenja s-sussidjarjetà u d-demokrazija lokali u dan minkejja li l-kunsilli lokali ilhom magħna għal kważi tletin sena.

Kemm il-darba jsir xogħol bil-galbu hi politika tajba li ninvestu fl-iżvilupp ta’ spazji miftuħa fiż-żoni urbani u l-madwar, u li dawn inħaddruhom.  Ikun, imma, għaqli jekk l-ewwel u qabel kollox inħarsu l-ispazji mħaddra li diġa għandna fiz-zoni urbani.

Ħarsu lejn il-ġnien pubbliku tal-Gżira u l-ġara tiegħu l-pompa tal-petrol.  Dawk li jfasslu l-politika tal-Awtorità tal-Artijiet u dik ta’ Project Green għandhom jaħsbu ftit dwar x’futur jista’ għandhom il-pompi tal-petrol. L-elettrifikazzjoni tal-karozzi daqt magħna u konsegwenza ta’ hekk ftit ftit tibda tonqos l-utilità tal-pompi tal-petrol, sakemm ma jkollniex bżonnhom iktar.  Hemm imbagħad il-mira tal-istrateġija tal-iżvilupp sostenibbli li l-karozzi fit-toroq jonqsu b’41 fil-mija. Dan kollu għandu jwassal b’mod loġiku għall-konsiderazzjoni li iktar jagħmel sens li tispiċċa l-pompa tal-petrol biex tagħmel il-wisa’ għal ġnien pubbliku ikbar. Dan jagħmel sens ferm iktar milli joqgħodu jnaqqru biċċiet mill-ġnien pubbliku biex ikabbru d-daqs tal-pompa tal-petrol!

Meta jirnexxielna nreġġgħu lura l-impatti tal-iżvilupp, nagħtu spinta tajba biex intejbu l-kwalità tal-ħajja ta’ kulħadd, mhux biss fil-Gżira!  Huwa f’dan il-qasam fejn jista’ jkollna bidla bis-serjetà fil-politika u l-azzjoni relattiva dwar l-ispazji miftuħa u mħaddra fiż-żoni urbani tagħna.  Hu faċli li troxx il-fondi pubbliċi fuq art abbandunata jew art fi stat ta’ telqa: €700 miljun faċli tonfoqhom b’dan il-mod! L-isfida qegħda biex tkun indirizzata l-ħsara li l-iżviluppaturi jikkawżaw fl-infrastruttura urbana li hi tant essenzjali biex nibqgħu f’kuntatt man-natura. Dan il-kuntatt tant essenzjali, jzommna b’saħħitna, anke mentalment, u jgħin sostanzjalment biex titjieb il-kwalità tal-ħajja!

Din hi t-triq realistika l-quddiem. Jeħtieġ li l-prinċipju tas-sussidjarjetà jkun prinċipju bażiku tal-governanza tajba kif ukoll li nassiguraw li jkunu l-Kunsilli Lokali li jmexxu dak kollu meħtieġ għall-iżvilupp u ż-żamma f’kundizzjoni tajba tal-infrastruttura urbana lokali, inkluż l-ispazji miftuħa mħaddra.

Il-Gvern ċentrali, permezz tal-Awtorità tal-Artijiet u Project Green, għandu jservi lid-demokrazija lokali flok ma jkompli jipprova joħnoqha.

Din hi l-lezzjoni li toħroġ mill-ġnien tal-Gżira.

ippubblikat fuq Illum: 7 ta’ Mejju 2023

Local democracy can protect our urban green spaces

We need more green open spaces in our urban areas. Green open spaces help us strengthen and where necessary re-establish our links with the natural world. These links have been severely impacted by the overdevelopment around us and by a Planning Authority which has prioritised overdevelopment at the expense of our quality of life.

Local Councils have a very important role to play in order to ensure that existing green open spaces are protected and do not continue to serve as fodder for the development lobby. Most Local Councils speak up to defend their locality. Unfortunately, success is not guaranteed as local government is, unfortunately, merely tolerated by central government.

The latest case, that of the Gżira Local Council, ably led by its Mayor Conrad Borg-Manché, should be an eyeopener. In its legal battle on the threatened public garden, the Gżira Local Council established beyond doubt that the Lands Authority failed the basic tests of good governance: the Lands Authority did not act transparently and in addition it has failed to consult with the Gżira Local Council.

This is a recurring problem with central government and its agencies who unfortunately tend to ride roughshod over local councils in Malta and Gozo. Central government is not yet sensitised to subsidiarity and local democracy notwithstanding that local councils have been around for almost thirty years.

Investing in the development of new green open spaces in our urban areas, or within easy reach, is good policy, if done properly. It would be much better, however, if existing green spaces in our urban areas are adequately protected. Much still needs to be done to achieve this objective.

Consider the Gżira public garden and its neighbour the fuel station. Policy makers at the Lands Authority and at Project Green should think about whether fuel stations have any future at all. The electrification of transport is in the pipeline and consequently it is only a question of time before fuel stations start the countdown leading to their disappearance. Coupled with the sustainable development strategy targeted reduction of 41 per cent of cars on the road this should lead to the logical consideration that it makes more sense for the fuel station to make way for an enlarged public garden instead of having parts of the public garden being nibbled away by the fuel station.

Reversing the impacts of development, for a change, could do wonders for our quality of life, not only in Gżira! This is where real changes are required to policies and action relative to the provision of green open spaces in our urban areas. It is relatively easy to splash public funds on abandoned or derelict land: all 700 million euros of it. The real challenge is where the development lobby is destructing or has already destructed the urban infrastructure which should keep us in contact with nature and as a result enhance our sanity and quality of life!

This is the realistic way forward. We should seek to apply subsidiarity as an operating principle of good governance, and ensure that local authorities take the lead in all matters concerning the development and enhancement of the local urban infrastructure, including that is, of green open spaces.

Central government, in this case through the Lands Authority and Project Green, should be at the service of local democracy instead of continuously seeking ways to strangle it. The local voice should lead the way and it should not be suffocated any longer.

This is the basic lesson from the Gżira garden saga.

published in The Malta Independent on Sunday: 7 May 2023

Without transparency, accountability is hampered

Earlier this week I was called by the Auditor General to his office in order to discuss the request for an investigation which I had submitted to his office some 15 days ago on behalf of ADPD. My request for an investigation was relative to the contract of service entered into between the Institute for Tourism Studies (ITS) and the Honourable Rosianne Cutajar, then a Labour member of parliament, now turned independent after being squeezed out of Labour.

As pointed out earlier in this column (The role of members of Parliament: TMIS 2 April), the issue is not an investigation of Rosianne Cutajar. It is rather an investigation into the operation of the Institute for Tourism Studies (ITS): whether it has engaged a consultant to its CEO to carry out responsibilities in respect of which the said consultant had no knowledge or competence, as is public knowledge.

An examination of the contract entered into between the Honourable Cutajar and ITS lists the areas of responsibilities which she was expected to shoulder: primarily issues of financial management. These responsibilities fall substantially outside the competences of a qualified Italian secondary school teacher. The contract in question is one which was hidden from public view until it was released by Shift News on the 23 March after it had obtained a copy as a result of a Freedom of Information request.

The inquisitive and investigative free press is shining a light on secretive acts carried out by the public sector: this is what transparency is about. Without transparency there is no way that we can ensure a shred of accountability.

The Auditor General informed me that he had called this meeting to hear my views, prior to his taking a decision on whether to proceed with the investigation and subsequently inform the Speaker of the House of Representatives of his findings.

Good governance does not stand a chance of ever taking root if this is how decisions are taken in the wider public sector. It is about time that all decision-takers start shouldering responsibility for the decisions they take. This ITS contract is one small example of abusive behaviour which needs acting upon immediately. It is not only politicians who must be accountable.

The management of public funds is tied with a duty to act in a responsible manner. All those who manage public funds must be in a position to account minutely for their actions. At the end of the day, it is the Auditor General who is entrusted by Parliament to monitor and report on the matter. Hopefully in the not-too-distant future we will be informed exactly what happened and who is actually responsible.

Transparency and accountability work in tandem. A lack of transparency is normally the first step to try and ensure that accountability is avoided.

Transparency is the indispensable foundation of good governance. In contrast, bad governance is generally wrapped in secrecy through the withholding of information which should be in the public domain. Without transparency, accountability is a dead letter; devoid of any meaning. A lack of transparency transforms our democracy into a defective process, as basic and essential information required to form an opinion on what’s going on is missing. After all, accountability is about responsibility: it signifies the acknowledgement and assumption of responsibility for our actions. This cannot be achieved unless and until transparency reigns supreme.

Whenever government, or public bodies, are secretive about information which they hold, and refuse or oppose without valid reason requests to release information under the provisions of the Freedom of Information Act they give ample proof of their governance credentials.

Transparency is a journey, not a destination. We have to work hard at ensuring transparency continuously. It is a long journey, one which never ends.

Rules and laws will not bring about transparency. It will only result whenever each one of us opts to do what is right and not what is expedient. Our actions speak much louder than words.

published in The Malta Independent on Sunday: 16 April 2023

L-integrità fil-ħajja pubblika

L-OECD (Organizzazzjoni għall-Kooperazzjoni Ekonomika u l-Iżvilupp) għadha kif ippubblikat tlett rapporti dwar aspetti differenti tal-integrità tal-ħajja pubblika f’Malta. Dan għamlitu bħala parti mill-proġett iffinanzjat mill-Unjoni Ewropeja dwar it-tisħiħ tal-ħidma tal-uffiċċju tal-Kummissarju għall-Istandards fil-Ħajja Pubblika.

L-ewwel rapport hu dwar kif il-leġislazzjoni eżistenti tista’ titjieb filwaqt li t-tieni wieħed hu dwar it-titjib organizzattiv meħtieġ fl-uffiċċju tal-Kummissarju għall-Istandards fil-Ħajja Pubblika. It-tielet rapport fih rakkomandazzjonijiet dwar ir-regolamentazzjoni tal-lobbying.

It-tlett rapporti fihom total ta’ 71 rakkomandazzjoni li l-esperti u l-konsulenti tal-OECD iddiskutew mad-diversi persuni u organizzazzjonijiet li ltaqgħu magħhom f’Malta. Mingħajr ma innaqqas mill-mertu ta’ dawn it-tlett rapporti irrid nemfasizza bi kważi ċertezza li l-parti l-kbira ta’ dawn ir-rakkomandazzjonijiet kienu ilhom preżenti fid-dibattitu politiku lokali għal żmien konsiderevoli. Sfortunatament dawn ġew repetutament injorati mill-partiti fil-parlament.

F’dawn il-paġni jiena ktibt diversi drabi dwar il-ħtieġa li nirregolaw il-lobbying fil-pajjiż. Il-lobbying huwa parti essenzjali mill-proċess demokratiku. Jeħtieġ, iżda, li jkun trasparenti. Sentejn ilu, il-Kummissarju għall-Istandards fil-Ħajja Pubblika Dr George Hyzler, ippubblika dokument konsultattiv dettaljat dwar il-mod kif nistgħu nirregolaw il-lobbying fil-pajjiż. Wara sentejn, iżda,  għadu ma sar xejn: il-proposti tiegħu għadhom qed jiġu “studjati”! Hi sfortuna li s’issa l-partiti fil-parlament ma jidhrux li huma interessati.  

Il-ħolqien tal-uffiċċju ta’ Kummissarju għall-iStandards fil-Ħajja Pubblika kien pass tajjeb ħafna, avolja kien hemm ħafna dewnien u tkaxkir tas-saqajn sakemm il-liġi għaddiet mill-Parlament.

Dan l-uffiċċju jeħtieġ li jkun allinejat kemm mal-uffiċċju tal-Ombudsman kif ukoll mal-Uffiċċju Nazzjonali tal-Verifika. Meta tqishom flimkien dawn huma tlett funzjonijiet essenzjali biex il-governanza tajba tinfirex u tissaħħaħ fl-oqsma kollha tal-amministrazzjoni pubblika.

It-tlieta li huma qed jagħmlu xogħol utli.  Jistgħu jkunu anke aħjar kieku jkollhom inqas tfixkil kull meta jkunu jeħtieġu informazzjoni biex jeżaminaw dak li jkollhom quddiemhom.  Ir-rapporti tal-OECD jezaminaw il-liġi Maltija li biha twaqqaf l-uffiċċju ta’ Kummissarju għall-iStandards fil-Ħajja Pubblika u jigbdu l-attenzjoni għad-diversi oqsma fejn jista’ jsir titjib biex ikun assigurat li l-indipendenza tal-Kummissarju tkun imħarsa b’mod prattiku.

Il-pubblikazzjoni tal-files Uber, iktar kmieni din il-ġimgħa, wrew li hemm bosta gvernijiet u istituzzjonijiet oħra (inkluż l-Unjoni Ewropeja) li minkejja li għandhom biżibilju liġijiet u regolamenti dwar il-lobbying, xorta nqabdu fuq sieq waħda. Għax li jkollok il-liġijiet li jiregolaw il-lobbying mhux biżżejjed: neħtieġu ukoll ir-rieda politika biex nimplimentawhom. Bosta drabi din ir-rieda politika ma teżistix!  

Il-kontabilità, it-trasparenza u l-governanza tajba huma ferm iktar minn slogans: huma valuri fundamentali li fuqhom jinbena l-istat demokratiku modern.  L-uffiċċju tal-Kummissarju dwar l-iStandards fil-Ħajja Pubblika, l-Ombudsman u l-Uffiċċju Nazzjonali tal-Verifika huma parti integrali mill-infrastruttura demokratika li hi essenzjali biex dawn il-valuri jrabbu għeruq b’saħħithom fl-istituzzjonijiet u s-soċjetà tagħna.

Madwar tnax-il xahar ilu l-Ombudsman kien indika li ma kellux intenzjoni li jaċċetta li l-ħatra tiegħu tkun imġedda. Ghad ma ġiex identifikat min ser jinħatar floku avolja qed jingħadu bosta affarijiet dwar dak li għaddej bejn il-partiti parlamentari  huma u jiddiskutu dwar min jista’ jinħatar.  Sadanittant Dr George Hyzler ser ikollu jwarrab ukoll  għax inħatar mill-Gvern Malti fil-Qorti Ewropeja tal-Awdituri. F’dan il-mument delikat ser ikun hemm post ieħor vojt.

Jekk verament nemmnu li f’dan l-istat demokratiku l-istituzzjonijiet għandhom valur, huwa essenzjali li dawn il-vakanzi jimtlew illum qabel għada. F’ġieh is-serjetà fil-ħajja pubblika hemm bżonnhom bla ħafna iktar dewmien.

ippubblikat fuq : Illum 17 ta’ Lulju 2022

Standards Matter

The Organisation for Economic Cooperation and Development (OECD), has just published three reports dealing with various aspects of the integrity of public life in Malta. This was done as part of the EU funded project on “Improving the Integrity and Transparency Framework in Malta”.

The first published report deals with the need to reinforce existing legislation, while the second one deals with the organisational review required at the office of the Commissioner for Standards in Public life. The third report deals with recommendations for the improvement of transparency and integrity in lobbying.

The three reports contain a total of 71 recommendations arrived at by experts and advisors at OECD after having carried out various meetings with stakeholders in Malta. Without in any way diminishing the positive contribution of all three OECD publications I can safely state that the great majority of the recommendations made in the three OECD publications have been present in the local public debate for a considerable time. Unfortunately, they have been repeatedly ignored by the parliamentary parties.

I have written on the need to regulate lobbying many times from these columns. Lobbying is an essential part of the democratic process. It needs, however, to be transparent. Two years ago, Dr George Hyzler, the Commissioner for Standards in Public Life published a detailed consultation paper on lobbying entitled: Towards the Regulation of lobbying in Malta. Two years down the line nothing has been done to regulate lobbying: his proposals are still being “studied”. Unfortunately, none of the parliamentary parties is remotely interested, so far.

The creation of the office of Commissioner for Standards in Public life was the achievement of a milestone, even though it took too long a time to drive the relevant legislation through Parliament.

The office needs however to be aligned with the Office of the Ombudsman and that of the National Audit Office. Viewed together these are the three essential offices which seek to ensure good governance, in all its aspects, throughout the different levels of public administration.

All three are doing sterling work. They can however do better if they encounter less obstructions whenever they seek information to examine issues at hand. The OECD reports dissect the legislation setting up the Office of the Commissioner for Standards in Public Life and pinpoint the several areas where improvements are essential in order to ensure that the independence of the Commissioner is protected in practical ways.

Standards matter. 

The Uber files published earlier this week indicate that many other governments and institutions (the EU included) are not up to scratch notwithstanding the at times detailed legislation regulating lobbying. The point being made is that having legislation regulating lobbying on our statute books is not enough: we need the political will to implement it. Many times, this political will is inexistent.

Accountability, transparency and good governance are not just slogans: they are fundamental values which underpin the modern democratic state. The office of the Commissioner for Standards in Public Life, the Ombudsman and the National Audit Office are the essential democratic infrastructure to ensure that these fundamental values have strong roots in our institutions.

Around twelve months ago the Ombudsman has signified his intention that he does not desire a renewal of his term of office. His replacement has not been identified yet as a result of the  horse-trading in which the PN and PL are currently engaged in. In the meantime, Dr George Hyzler has been kicked upstairs, being nominated as the Maltese member  at the European Court of Auditors. As a result, very shortly, another vacancy in the Office of Commissioner for Standards in Public Life has been created at such a delicate point in time.

If we really believe that, in a democratic state, institutions really matter, it is imperative that these vacancies are addressed at the earliest. Standards matter.

published in The Malta Independent on Sunday : 17 July 2022

The financing of the PLPN

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

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

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

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

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

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

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

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

published in The Malta Independent on Sunday : 17 April 2022

Abusive continuity

The distribution of multiple cheques to every household by the Labour Government on the eve of the general election is more than abusing the power of incumbency. Through the said distribution, the power of incumbency is being transformed into a corrupt practice, specifically intended to unduly influence voters.

What, in normal circumstances should be a simple administrative act is being transformed into blatant political propaganda, at public expense, straight into your letterbox. A covering letter signed by Robert Abela and Clyde Caruana says it all. A Banana Republic in all but name!

Why should such handouts be distributed on the eve of elections if not to influence voters?

Even if one were to accept that such handouts are acceptable, it is certainly not in any way justifiable to plan their distribution specifically on the eve of an election. This goes against the basic principles of good governance.

The power of incumbency is the executive power of a government seeking re-election. Incumbents always have an advantage. The manner in which they handle it defines their governance credentials.

This has been a government characterised by bad governance throughout its term in office. Right from the very beginning, on 13 March 2013. I consider the full 9 years as one continuum. This was reinforced by Robert Abela himself who emphasised that his leadership of the Labour Party seeks to continue the “achievements” of his predecessor and mentor Joseph Muscat. Continuity was his declared mission.

On its first days in office, Labour started off on its Panama tracks. The secret Panama companies set up by Konrad Mizzi, Keith Schembri and someone else, known as the (mysterious) owner of Egrant, went on to rock Labour over the years.

The Electrogas saga and its link to the assassination of Daphne Caruana Galizia intertwined with the Panama debacle.

It is now clearly established that the assassination of Daphne Caruana Galizia was directly linked to her investigative journalism. Her investigations led her to identify the governance credentials of various holders of political office and their links with big business. Defining their relationship as being too close for comfort would be a gross understatement.

As emphasised in the investigation report on the Daphne Caruana Galizia assassination, over the years, a culture of impunity has developed in these islands. This has led to misbehaviour in public office being normalised. It has also led to considerable resistance in the shouldering of political responsibility by holders of political office, whenever they were caught with their hand in the cookie jar! Rosianne Cutajar and Justyne Caruana being the latest examples, as amply proven by the Commissioner for Standards in Public Life George Hyzler.

To add insult to injury Cutajar and Caruana were the recipients of generous termination benefits, notwithstanding that their term of political office ended in disgrace. Caruana received terminal benefits twice in the span of a short time, as she established a national record of resigning twice from Robert Abela’s Cabinet!

With this track record one should not have expected otherwise from the Muscat/Abela administration. With the abusive distribution of cheques on the eve of the general election Labour’s current term is approaching a fitting end.

The Labour Party in government has consistently acted abusively. Robert Abela has followed in the footsteps of his predecessor and mentor Joseph Muscat. Continuity has been ensured, as promised.

published in Malta Today : Sunday 20 March 2022

The resignation of David Thake

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

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

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

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

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

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

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

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

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

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

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

published in The Malta Independent on Sunday: 16 January 2022

The golden handshakes must be transparent

It has been reported, in various sections of the press, that Justyne Caruana, former Minister of Education, has received, or will be shortly receiving payment in the region of €30,000 as a result of her ceasing to hold political office. This has occurred after she was forced to resign subsequent to the publication of a damning report from the Commissioner for Standards in Public Life which report concluded that the Ministry of Education, under her political direction, had screwed the exchequer to benefit her “close friend”.

Since 2008 holders of political office who cease to occupy such office have received golden handshakes, substantial sums which some describe as severance pay. The sums disbursed to date are substantial and, over the years, are said to be close to a total of €1,500,000. Holders of political office in receipt of such payments are not just members of Cabinet, as payments have also been made to former Leaders of the Opposition throughout these years.

The applicable criteria are largely unknown. There is no transparency whatsoever in the process.

There is a serious issue of governance.  The Executive is bound to be accountable through ensuring that both the criteria applied as well as the monies disbursed are well known. It is an expenditure from the public purse, so there should be no secrets about it. It is in the public interest to know how the public purse is being managed at all times.

First: the objectives of the payments should be crystal clear. When holders of political office take up their post, generally, they take leave from their current employment or close their private offices if they are professionals. Their job prior to assuming political office may be lost by the time they relinquish office. On the other hand, losing contact with their professional environment will generally place them in a difficult position to reintegrate when their term of political responsibilities draws to an end. 

Hence the objective of these so-called golden handshakes is to compensate for the fact that the holder of political office cannot go back to his/her former job or professional environment. He or she will generally have to start from scratch or almost. Not all cases are identical and hence the criteria drawn up should allow for some leeway. Do they? We do not know as to date these criteria are considered as some state secret!

The objective of the payments made is to ease the transition of the holder of political office back to a normal life.

The second point is to establish who should apply these criteria. From what is known through reports in the media the matter is regulated by the Office of the Prime Minister (OPM), either directly or through the Cabinet office. This is not on.

Ideally the criteria should be applied by an authoritative person or body separate and distinct from the OPM. The OPM has a finger in the pie, generally, in all the circumstances leading to the appointment to political office or to the dismissal therefrom. It should therefore not be in a position of sugaring resignations with promises of generous hand-outs.

The third point is then to establish the quantum payable.

From what is known, locally, this is established at a month’s salary for every year’s service, subject to a minimum payment of a six-month salary. It is not known whether eligibility is pegged to a minimum period in office.  These payment rates are substantial when compared to those in other jurisdictions. In addition to having smaller payments other jurisdictions subject such benefits to a minimum period in office, generally of not less than one year.

There are also a number of other serious considerations which need to be made. Should loss of political office as a result of an unfavourable election result have the same impact as being dismissed from office or being forced to resign as a result of unethical or unacceptable behaviour?

Specifically, should ending your political appointment in disgrace be rewarded? It should definitely not be so.

These are some of the issues which transparency brings to the fore. We need to discuss them seriously and only then can they be applied ethically and fairly.

It is for these reasons that earlier this week I have requested the Auditor General to investigate the golden handshakes being paid out by the Office of the Prime Minister to former members of the Cabinet. The payments made and the criteria applied should be examined meticulously.

Good governance should be our basic guide.

published in The Malta Independent on Sunday: 9 January 2022

Wara Justyne: nistennew issa r-riżenja ta’ Frank Fabri

Ir-riżenja ta’ Justyne kienet inevitabbli.

Setgħet iddum ftit ieħor taħsibha, imma kienet fir-rokna, ma kelliex minn fejn toħroġ.

Din hi t-tieni riżenja bħala riżultat tar-rapporti tal-Kummissarju għall-Istandards fil-Ħajja Pubblika. L-oħra kienet Rosianne Cutajar!

Li tirriżenja darbtejn mill-Kabinett fi 23 xahar, kif għamlet Justyne, naħseb li hu record. Juri li l-ġudizzju ta’ Robert Abela li jagħtiha ċans ieħor kien wieħed żbaljat għall-aħħar.

Ir-riżenja ta’ Justyne mhiex il-konklużjoni. Għad hemm iktar : ir-riżenja ta’ Frank Fabri, Segretarju Permanenti li approva l-kuntratt ta’ sieħeb Justyne, Daniel Bogdanovic, issa hu iktar meħtieġa minn qatt qabel.

Fil-ġlieda għall-governanza tajba, fil-ġlieda kontra l-abbuż u l-korruzzjoni, iċ-ċivil għandu rwol importanti. Is-segretarji permanenti għandhom sehem kruċjali f’din il-ġlieda. Min minnhom jonqos li jaghti sehem mhemmx post għalih. Min jiffaċilita l-ħmieġ għandu jitwarrab minnu fih