The Panama papers opened a new chapter in the already big pandora's box that included the Lux and Swiss-leaks. These new revelations are more shocking though, as they describe thoroughly how the rich and powerful hide their money in shell companies and trust funds in countries where there is no transparent legal system or more than that no official way how information can be acquired about the persons opening these trusts and the money being generated.

People involved in the Panama papers are mainly dictators the likes of Al Assad, Gaddafi's children and ousted Egyptian President Hosni Mubarak but also shady countries like North Korea. It generated a huge sense of distrust in politicians, and honest people that pay their taxes are angry because they work hard for a living and adhere with the law, while their leaders collected money from commissions and other doings and hide it in foreign jurisdictions in order to evade tax and have secrecy. Most of these countries are or have been blacklisted by the European Union, including Panama.

Unfortunately, Malta is also named in the Panama papers as Energy Minister Konrad Mizzi is the only minister from a European Union member state that was mentioned. Labour's Deputy Leader is also the only European minister still in office mentioned in the International Consortium of Investigative Journalists's (ICIJ) investigation. Konrad Mizzi is insisting that the leaks have shown that he was truthful but we cannot forget that details emerged in local media due to journalists' questions. We heard ad nauseam about Konrad Mizzi opening a trust fund in New Zealand and a company in Panama, but there are still people asking why the Minister decided on Panama and excluded Malta. Other international media reports on this case especially from the Australian media, alleging that negotiations to open the Panama companies started only five days after the election does not help.

The financial sector in Malta has vastly grown during these last years. It was the Nationalist Party in Government that pro-actively decided to invest in this sector that today provides for jobs and careers with good pay. Although unfortunately Malta is perceived by some European branches as a tax haven, it is respected and law adherent with companies registered with MFSA, the authority that regulates the sector. Therefore the system is transparent and shareholders are known.

It is ironic that at the time that European leaders are discussing tax harmonization in order to eliminate tax rates imbalances between member states and eradicate tax evasion, a Minister in a European Union country decided to deal in Panama, a blacklisted country and considered as a place where most people hide their money. The EU is working to regularize off-shore companies but also wants tax harmonization in order to eliminate corruption and tax evasion. It will be embarrassing for our Finance Minister to join the other European Ministers, mostly those that unfortunately consider Malta as a tax haven because of the preferential tax rate for the financial sector, and voice his discontent regarding tax harmonization when another Cabinet minister in the Maltese Government is mentioned in the Panama papers.

Minister Scicluna, who has a solid insight of finance and the economy, knows the impact that such involvement by a Maltese Minister can have on the country. Edward Scicluna has been reported in the media that he would neither defend nor accuse anyone involved in the Panama leaks. He was also reported saying that Joseph Muscat has to take strong and tough decisions to safeguard the economy. The behavior of Konrad Mizzi and Keith Schembri should not reflect badly on financial services providers in Malta.

Iceland's Prime Minister's decision to resign, after he too was mentioned, is the best example how a politician has to eventually abide with the will of the people. Democracy is also about what the people say, what they want and how they deem elected politicians to govern. Politics is also aimed for the greater good not self beneficial but what is best for the country, and that is why Iceland's leader decision was based not to tarnish the country's reputation further with repercussion on the economy. Decisions have been taken also in other countries not only Iceland. Joseph Muscat is taking too much time to act and decide and this is generating distrust in our financial sector thereby ruining the efforts that so many professionals have made in the last years. This was also voiced by social partners who stated that Malta's reputation is at risk as the country's name is constantly being associated with the Panama papers scandal, tax havens and tax evasion. MEA pleaded for good governance as 9,000 jobs in the financial sector depend on a sound administration of the financial sector.

Prime Minister Joseph Muscat needs to take action now and not wait any longer or drag his feet in defending Malta's financial sector. The actions to be taken need to disassociate Malta's name from the Panama papers and to do so he has take a decision. After expectations and a huge build-up during Labour's conference, especially after Konrad Mizzi's speech, the Prime Minister reiterated that he will wait for the investigation and audit results. He emphasized that he's not afraid to take decisions but in the meantime he's going to wait again. He said that as a leader he will decide takes when he has the audit's conclusion at hand but this is almost comical since the conclusions will be the decision itself. In the meantime, while he went off flying yet again, Malta's reputation continues to be attacked by the deluge caused by his own  Minister and Chief of Staff.  The only conclusions to be drawn from Joseph Muscat's failure to take concrete action is that he is weak on good governance, transparency and accountability. This is certainly behaviour that shows that for him Malta's interest is not the priority.

Dr Comodini Cachia is a Mationalist Member of the European Parliament