In local politics, there is no rest for the weary. Just when ministers and MPs were gearing themselves up for the summer parliamentary recess, 20 business firms involved in the supply of pharmaceuticals, medical equipment and other services to the Ministry of Health, went into action and shattered the summer somnolence.

They filed a judicial protest in the First Hall of the Civil Court against the Director-General of the Health Division, the Director for Health Procurement and Supplies Services and the Attorney General.

They are claiming that the Government has continued to ignore their repeated demands for payments of arrears due to them in the total amount of Lm8.5 million and that, in terms of the EU Late Payment Directive, each of the claimants was entitled to interest on the outstanding amount not paid in a reasonable time. Some of the sums due have been pending for months and, in some cases, for years.

This incident has been given front page prominence in a section of the local print media, where it was hinted that unless this matter was satisfactorily settled by August, the case is expected to be referred to the European Court of Justice.

Considering the size of the Maltese economy and its internal market, an outstanding debt exceeding Lm8.5 million is a heavy burden that would break the back of any weak business sector. It is no surprise that the firms concerned have been constrained to go to the courts in the interests of their survival.

What is surprising is the incompetence and the breath-taking arrogance of the administration to run such a considerable debt, and to drag its feet when it comes to meeting its payment obligations.

Urgent Answers

This issue raises many questions which deserve urgent answers.

The over-riding question relates to the viability of the Government’s finances. Is the administration so stretched, after incurring a debt bill, approximating Lml.5 BILLION, that it cannot settle its accounts with local business companies? Is it possible that the government has reached the end of its tether?

What other outstanding debts does the government have with other local businessmen, including building and road contractors? Or has the Government singled out the importers of medicinals, for reasons that are neither clear nor logical?

Apart from demotivating local enterprise and initiative, doesn’t this deplorable performance bring Malta into disrepute with international firms associated with the local importers, as well as in EU circles?

Who was ultimately or otherwise responsible for this performance? Is it a case of administrative incompetence? Or has there been political interference from responsible quarters – however high up – to hold the hand of public officials?

Has any disciplinary action been taken in this regard, or is any action in hand? If in the affirmative, why is it that matters have not been handled above-board, in full transparency? If no action has been taken, why is the administration so comatose?

And if, as has been alleged in the judicial protest, part of the outstanding payments have been pending “for years”, is there a case for examining whether or not the Public Accounts Committee of the House is scrutinising public procurement with an eye to the public interest?

Equally, why has this problem been allowed to fester “for years” without the Chamber of Commerce raising the alert, and causing a hue and cry, not only to defend the interests of its members, but also to draw the attention of the whole business community to the unfolding situation?

Government’s Predicament

These questions highlight, in particular, the government’s incompetence, which is compounded by its arrogance. More seriously, they highlight its predicament.

It is obviously in distress and cannot readily find Lm8 million to save itself the embarrassment of a court confrontation, which may potentially go all the way to Strasbourg, and the added possible embarrassment of resorting to additional tax measures.

The resulting situation makes a figure of fun of Ministers and spin doctors who claim that the economy is “on track”, and that the administration is moving in “the right direction”

The stubborn facts and the untarnished truth are coming into the open, partly at the instance of some players, who were carried along on the crest of the wave when the going was good, and turned a blind eye at the government’s profligacy.

The day of reckoning had to come. Belatedly, seeing is believing.

Those who can afford it, can now go to the courts and try to cut their losses.

Who will make good for the rest of the damage?

Will those who were administratively or politically responsible for what has happened disappear into the void, and leave the taxpayer to face the music?

Things are fast reaching a stage where the issue is one of survival, not of routine taxation.

It is an issue that calls for urgent, focused action in Malta – not in Brussels – with the involvement of all who are qualified to contribute to sensible solutions with the consent of the governed..

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