This is a government that may talk the talk. But it is a miserable failure when it comes to implementation. The VAT debacle is but another example.
In 2005, a year after Malta became a member of the European Union, we were assured that the new VAT procedures had proved successful as considerable resources were being employed to carry out investigations, credit controls, audit trails, validations and reviews of assessments; electronic auditing, no less, was on its way. ‘State of the art’ one would say.
It did not take too long for a major fraud bombshell to explode. In 2009, one newspaper actually reported that employees at the VAT department had suspected VAT irregularities “for years”.
As the nature of corruption came out into the open, the government had no option but to set up a board of inquiry. This board found a lack of accountability and risk awareness at all levels, saying this posed a “grave risk” in terms of insider fraud.
It was indeed the responsibility of the Prime Minister and Minister of Finance to ensure that all the systems were in place. Throughout this time they had been continuously receiving performance plans and reviews, meaning that all shortcomings went unobserved by them as the goings on happened under their very noses (more irony heaped on their decision to increase their own pay so robustly).
The failure of Dr Gonzi’s government to act provided a congenial environment where the architects of the intricate web of corruption could thrive. To add insult to injury, it took Dr. Gonzi’s administration 15 whole months to publish the damning findings of the board of inquiry, a delay that was accompanied by stale excuses from a Minister of Finance whose own performance is as tragic as that of the government of which he forms part.
Bad apples can certainly be found everywhere and we do appreciate that no system can be foolproof.
Yet once again, and in the wake of the BWSC scandal, we have another case where the government lacked the energy and determination to nip it in the bud, when it had all the opportunities to do so.
That this government has proved to be incompetent in so many sectors has been beyond doubt for a long while now. What is of grave concern is the government’s lack of commitment in dealing with the bad apples wherever they may be. And because this government has the habit of appointing blue-eyed guys in every nook and cranny of governance, it is vital that people can at least believe that these blue-eyes guys do not benefit from protection from high up. We need to be able to exclude thoughts of collusion from the long list of shady events.
Unfortunately, the government’s reactive behaviour and questionable approach in this and many other instances falls desperately short from dispelling doubts that have taken root.
We as a nation cannot afford to let this happen.
Stefan Zrinzo Azzopardi is
the president of Partit Laburista