The latest scandal to rock the Nationalist Party is only the tip of the iceberg and more will come out, Prime Minster Joseph Muscat said this morning.  

Dr Muscat was speaking at a party activity in Qormi, where he said that these scandals were only coming to light because of the introduction of the Whistleblower Act and the removal of time-barring for corruption cases.

Dr Muscat said there was a clear difference between the government’s optimism and the Opposition’s negativism. PN Secretary General Chris Said yesterday admitted to having known about the Gozo racket in which former Minister Giovanna Debono’s husband was involved. Dr Said had tried to give excuses about not having known what the details where but an email published in the media today showed that the PN Secretary General was fully informed about the case. The whistle blower told him in May that he had received his instructions from Anthony Debono. He was told that the free works were being carried out in exchange for votes. The contractor mentioned a long list of construction and excavation works that were carried out and for which he was not paid. He said he had mentioned these things in Dr Said’s office and PN Leader Simon Busuttil was also aware.  

“Instead of telling him to report the case, or that he would report the case himself, Chris Said told him that they should meet and that he would help him out. “Why did Chris Said not go to the police and report everything?” The PN, he said, had tried to shift the blame on Gozo Minster Anton Refalo but the case only came to light because of his good work. In admitting that abuses still exist, the PN is admitting that the abuses were there in the first place.

On being challenged to extend the Gozo investigation to cover the past two years, Dr Muscat said he did not interfere in police investigations. “I will not tell them what to do but they can investigate whatever they want. I have absolutely no problem with that.” This is only the tip of the iceberg. These scandals are coming out thanks to the Whistleblower Act and the removal of prescription on corruption cases. Dr Muscat said it was now becoming clear why the PN never made these changes to the law in 25 years.

Dr Muscat's claims on the allegations surrounding Ms Debono and her husband drew a response from the Nationalist Party, which accused the Prime Minister of lying.

In a statement, it noted that Dr Refalo admitted to having heard of the case last November, but pointed out that the police only started investigating the case this month - after it was publicised by MaltaToday - and questioned his failure to report the matter to the police.

The PN also questioned when Dr Refalo informed Dr Muscat of the case, stating that it was clear that the Prime Minister was lying when he claimed that he learned of the case through the newspaper.

It said that Dr Muscat and Dr Refalo had a lot to answer for, and insisted that all that they have said over the case so far have been lies.

The next big challenge is equal distribution of wealth generated by a thriving economy

Dr Muscat spoke at length over the country’s “thriving” economy, which was allowing the government to give back to the people without increasing taxes. “We are optimistic because we have the results to show for what we are doing. Malta has the lowest ever unemployment rate. People have more spending power.”

Under this government three new jobs are created every single day. The government is, however, not getting carried away and is not forgetting those who are still struggling to find work.

“I consider myself to be the CEO of a large corporation called Malta. EU rules prevent member states from spending more than they can afford.” Dr Muscat said he was very satisfied when the latest accounts showed that government income was higher than the expenditure during the past five months. This is crucial, he said, because it allows the government to reduce debt month after month.

In the space of a few months this government will manage to cancel the increase in expenditure incurred by the previous administration. During the last PN administration the national debt increased by €100 million a month but this government is managing to reduce it by €45 million a month.

The PN used to take out loans while medicines were out of stock and other services were lacking. This government is doing the exact opposite, he said, reducing energy tariffs and introducing services like free childcare. “We are able to do this because the economy is thriving.”

The government did not need to increase taxes to lower energy tariffs. The government is now injecting another €50 million into the economy. The economic benefit is equal that of seven budgets at once, he said.

Dr Muscat said Malta was the only EU member state not to face action by the EU over failures to translate the EU’s Energy Efficiency Directive into national law. “Only Malta passed the test.”

The Prime Minister spoke about the energy discussions held at the EU Summit last week when member states were urged to diversify their energy sources and seek agreements with third countries. One of the suggested countries was Azerbaijan. “We were also urged to seek energy agreements with China. I told them we had already signed one of the best possible deals with China.”

A thriving economy also meant that the government was in a position to give back to the people. “The €35 bonus cheques are being sent to 220,000 persons.” Dr Muscat said the government did not want to force the private sector to pay these bonuses. The government had chosen to pay them itself, without jeopardizing its economic standing.

The private sector should be regarded as a partner, he said, referring to the recent agreement signed with the Royal Malta Yacht Club to launch Yachting Malta. Yachting might sound like an irrelevant sector, he said, but one single race had left €1,600,000 in the economy. “There is no secret to this success. It is only a result of the way we do things.”

Other projects being carried out by the government include the renovation of the old Valletta market. Dr Muscat said he could not believe how run down the building was and how no one was, until now, interested in investing in it. The previous administration had refused to carry out the project with the excuse that it would cost millions. However, this government had seen things differently. “That is what the private sector is for. We do not need to spend public money; we only need to stimulate the economy to get things done.” The Arkadia Group will not only invest on the project, it will also be paying rent to the government and creating 130 new jobs. “How can we not be optimistic?”

The government, he said, had also reached an agreement with a UK company to make Malta an attractive destination for British youths. With the aid of popular British radio presenter the campaign has managed to attract 6,000 persons in just five days. Dr Muscat said the government intended to use the project to help in regenerating the Bugibba area, where the last major project was carried out almost 20 years ago. In fact, many of these 6,000 youths will be lodged there.

Turning to Gozo, Dr Muscat said the previous government had only managed to create 18 new jobs in its final year. This government has managed to create 500 new jobs so far. Gozo will also have a high quality hospital.

The film industry is also thriving, injecting millions into the economy. US director Michael Bay, of Transformers fame, will be shooting a film in the coming weeks. The government will soon announce another major production that will be coming to Malta.

Major projects will also be carried out in the south. The Marsa power station has been closed and the Birzebbuga tanks will be removed. An agreement has now been signed for the construction of a new hospital at Smart City. Johnson and Johnson, an enormous health sector company, has formed part of a consortium that will build a new 200-bed hospital. The project will create some 500 new jobs.

The hospital project will also focus on research and the concept of personalized medicine. “Doctors will be able to come up with medicines designed specifically for individuals. That is cutting-edge technology.”

This is over and above the envisaged €200 million health project in Gozo, which will include the Barts medical school and a new Gozo hospital. Dr Muscat confirmed that the call for expressions of interest was issued on Friday. These projects will turn Malta into a Mediterranean health cluster. “The next challenge,” he said, “is to see how all this newly generated wealth will be equally distributed among the people.”

Another challenge is the fact that Malta does not have enough manpower. Malta already has a shortage of nurses and has to employ foreigners at Mater Dei.  The priority, he said, will be for Maltese workers to take up these jobs. The health sector has, until now, been regarded as a burden on the economy. “Now we have a game changer.”

Dr Muscat said the upcoming elections will be difficult; mid-term elections are almost always won by the Opposition. The government is trying to change this trend. “Our aim is to obtain a majority, even if by a single vote. We want to send out a strong message that we are a united people and this is truly an optimistic country.”