Much political capital is being made on the strength of the Maltese economy. It is an undeniable fact that Malta’s economy is booming and a shining beacon in the EU where most of the others are struggling. What is much less acceptable is the government taking credit for it. These are the facts.

With all other tourist destinations which normally compete with Malta for the tourist dollar (or euro) in serious trouble for a variety of reasons ranging from heavy influx of refugees, acts of terror, to significant economic unrest and constantly in the headlines for the wrong reasons, it is no surprise that tourism, the engine room of the Maltese economy and the one industry which bears the brunt of Malta’s national revenue is breaking records and taking the economy along on the same ride. The other main event is of course the reduction in the price of oil which is no less than equivalent, in relative money terms, to an oil discovery in Maltese waters without the environmental concerns which accompany drilling development and production of oil, risks most particularly relevant to a tourist-based island economy.

A blind man’s dog could successfully manage the Maltese economy in current circumstances. This government won two massive economy-related lotteries during its term. One was the price of oil and gas going through the floor, which among many other things saved Air Malta and enabled a cut in electricity rates; the other were the tragic events all over Europe which panicked tourists into total abandonment of destinations like Tunisia, Greece, Turkey, Egypt and so on, with many of them opting for Malta instead. A stable administration would be putting heads together to make hay while this particular set of favourable economic circumstances remain present.

Not so unfortunately for Malta. The government is in a state of paralysis with the Prime Minister and various Ministers forced to spend all their time and energy wallowing in muddy controversies with no respite, constantly attempting to defend the utterly indefensible. It’s time for the Prime Minister to show leadership by taking some action to demonstrate reasonable accountability and move on. Finance Minister Scicluna would be fulfilling his obligations much more constructively by examining lateral ways of maintaining this favourable economic tide flowing in the right direction and apply the current excellent revenue streams to laying the foundations for future economic growth through diversification of economic activity. Instead the Finance Minister wastes time futilely trying to defend fellow Minister  Mizzi and Chief of Staff Schembri with unintelligent statements which demonstrate either his total naivety of sophisticated financial matters or absolute lack of understanding of commercial imperatives, which, given his position, is very troubling. It’s clearly time for the government to accept the fact that every single financial pundit around the world condemning the use and more importantly the intent of Panama based companies and corporate structures cannot be wrong.

From the Times of London, The Wall Street Journal, The Australian Financial Review, to the BBC, CNN, European financial writers and experts, all have unequivocally condemned the setting up and logical clandestine motive of these structures, but it seems Finance Minister Scicluna and Justice Minister Bonnici know better with their pathetically trivialised explanations and smokescreens. Unfortunately, the bad news for any Opposition is that elections are mostly about a country’s economy. Normally, good economic times breed voter apathy for change. It may be that the extent of unexplained apparent wrongdoing by members of this government is so widespread and significant that it might make a difference at the next election.

There is a growing public perception that the apparent suicidal strategy the Prime Minister has resorted to to defend his acolytes, much to the high cost of his own support base, may be more to do with a potential personal interest in these matters than affection and admiration for fellow members of Cabinet. Certainly that perception is growing. There was no soul-searching, no hand-wringing when it came to dismissing fellow Cabinet minister Mallia for actions which were serious enough at the time but which pale into insignificance when compared to some of the other shenanigans of the last couple of years.

The Prime Minister’s latest contrived attempt to deflect public debate to other matters was the opportune albeit seemingly orchestrated but nonetheless significant issue of flawed concrete in the construction of Mater Dei Hospital. The cost of rectification being trumpeted countless times in a vain effort to disengage the public from Panama and other scandals is apparently €150 million, a very significant sum of money. The Prime Minister also hinted mischievously about the possibility of corruption behind the Mater Dei Hospital debacle. Well here is the Prime Minister’s challenge. Many believe concrete issue is a simple albeit highly expensive contractual issue which should be covered by the contractor’s insurance, professional indemnity insurance of the consulting engineers and other professionals employed on the job and responsible for quality controls particularly as far as concrete is concerned, which is normally the subject of compression and strength testing during the actual building process. There may well have been gross negligence by the previous administration in allowing this to happen. If the Prime Minister believes there is more to it than that, he is in a position, unlike the Leader of the Opposition, to instigate a comprehensive independent investigation which could lead to criminal charges if supporting evidence of corruption or other wrongdoing was uncovered.

In addition to clearing his name and his government once and for all, the Prime Minister should also appoint an international independent firm which specialises in forensic investigation of fraud and white collar crime to investigate all of the recent financial scandals which continue to haunt him and the government, giving the investigating team the power of access to all bank accounts of all related parties with specific instructions to follow money trails to the ultimate beneficiaries. That would put an end to all the innuendo, suspicion and might even restore some credibility to the country’s financial standing overseas. It’s an obvious fix if there is nothing to hide and one which will pluck the nation and its government from the quagmire of inactivity and restore a paralysed administration, bogged down with defensive action, back to its proper role of lawmaking.

Perhaps when that’s done, the dust of political battle will settle and the government can focus more on how best to insulate Malta from the possibility of a sudden contraction in the booming business of tourism, which would be expected to happen once other destinations become secure again, or much worse if the unmentionable happens and Malta’s internal security is compromised. With strong revenues the government should be studying ways to support the manufacturing sector by encouraging recapitalisation of aging manufacturing facilities with government grants, provide skilled labour training and retraining and embark on an international campaign of promotion for goods manufactured in Malta. There is much to be done to ensure Malta’s economic good fortune that can be translated into enduring economic good times in the future through good planning and implementation.

 

A. Trevisan