Reading through the weekend press, critics wax lyrical on the recent shocking experience of persistent power cuts. These blackouts spread across the island like wildfire. Theories about the cause for such failures have sprouted like weeds in a fertile patch. Nobody believes Enemalta, a state utility pontificating that the true cause for such blackouts is the excessive heat on the tarmac which caused many underground cables to burn. With temperatures reaching 40 degrees Celsius there were 33 persons that died during the intense heat. Some tourists are claiming refunds from hotels and the MHRA is critical of the energy ministry.  For once, they are blaming her for the loss of reputation as a tourist resort and are politely claiming compensation.  The Chamber of SMEs is also openly pleading for compensation for lost business and tons of refrigerated food thrown away by households and retail business. A wild guess of €200m in damages is doing the rounds. Naturally during the blackouts, party apologists in their entirety feel angry and betrayed saying such power failures was the menace of a hidden hand (perhaps Martians) aimed to sabotage the nation.

The country is also angry following the accidental death of young Jean Paul Sofia when visiting a factory still under construction, which collapsed and killed him. A tragedy, which sent his crying mother pleading to the prime minster to hold a separate inquiry on administration weaknesses which led to the death of her son. The prime minister and his entire parliamentary group of 40 collectively voted against a separate inquiry, three days later the prime minister had a holy Damascene moment to concede an inquiry. This death was deeply felt by the public to be avoidable given that the authorities had previously tightened the rules to ensure safety during construction in building sites.

All the while, the Opposition was baying for justice and pleaded in parliament against the selling of three hospitals to Vitals Health Care and a secret pact signed with the Azeri for Electrogas (the selection board in both tenders was headed by a partner from Nexia BT). Millions were lost following the bankruptcy of Vitals group. The private-public-partnership was paid millions pursuant to a 30-year contract to build a new Gozo hospital and run three major hospitals. No such embellishments were done, while the Opposition has taken three ministers to court to account for the millions squandered. The Court declared such contracts null and fraudulent.  

Previously, the coup de grace was four Panama companies commissioned in 2014 from Nexia BT, a disbanded audit firm. This was a potent scoop posted in a blog by a journalist, later savagely slain in a car bomb. Caruana Galizia revealed two of these Panama structures belong to the chief of staff and Dr Mizzi, then health minister. This long introduction needs to be read in the light of an island which previously boasted it was a maverick and recorded the best economic performance within Eurozone. A multi-million-euro property market has been built over the past decade and Malta has never seen such grandiose projects in the pipeline. Such affluence, which came with a wanton greed for erecting soulless concrete structures, sent the domestic rents sky high.  

Let us celebrate our fortune while migrants clean our streets and serve us everywhere as in the airport, hotels and restaurants. An artificial sense of promiscuous living made us blind that the party will never stop. Our yacht marinas are full of luxury craft and some owners afford sailing weekend trips to Sicily. So one may ask what is so wrong in the isle of milk and honey?  Perhaps history repeats itself and human nature tends to score its own auto goals.  

In context, I found reading the seminal yet controversial book, The war of the worlds by H. G. Wells sets a parallel of the fear and devastation from alien Martian attacks. The novel written between 1895 and 1897, is a narration about a conflict between mankind and an extraterrestrial race. This fiction gave me a shocking reminder that the world is being shaken to its knees by an unstoppable climate change and a seemingly impossible task to cut emissions to net-zero by 2050.  Back to the shocking narrative by H. G. Wells, one is given a good pointer to elucidate the paradox that Malta has just experienced. In our case, humanity can anticipate the apocalypse at the ravages of ecological disasters casually blamed on climate change. We face a dichotomy - that while Muscat's seven-year legacy enriched all strata of the population - yet this regime was rated by the Opposition as corrupt - the fruits of ill-gotten gains. State propaganda helped create a false sense of a virtuous administration that the going is good - watch the budget temporarily moved to a surplus.  

In hindsight, we observe how private vices result in public benefits like expanded industry, a misfired Blockchain adventure, three million tourists all blessed with persistent scarcity of skilled workers. Bank credit is still cheap and mortgages are attractive particularly to lower income earners. Banks report bumper profits. Cheap shopping trips to Dubai for the entire family became affordable while youths can sport a second imported car even though the cost of a garage has escalated and is beyond the means of many households. This is a paradise state, where society flourished in many ways, yet on closer scrutiny it transpires that no trade/project was pure as the driven snow.

The Opposition party (itself in disarray) regularly preached to its faithful, pointing incessantly to moral corruptness. Such vices served as an indispensable role in the economy during the Muscat golden regime by stimulating trade, industry and upward economic improvement that is public benefit. Today, we face a drastic change in mentality that marshal thousands of low-wage TCNs to deliver fast food in scooters, drive buses, clean streets, handle tough construction jobs and do most menial tasks previously under the Maltese yoke. Of course, the top curse is persisting inflation which is affecting and worrying employers leading to a cost-push menace. With this, we also need to consider the wage inflation does not help the situation where Cola this year went up to €10 a week and next year this will be going over €13 - it will cripple some businesses. There is an ephemeral lack of good governance and trust in the institutions, the abuse in public procurement and the direct orders leading to millions siphoned to loyalists. A survey shows 90% think corruption is rife. As expected, some businesses get red carpet treatment but most struggle to compete. All this is anathema to inculcate a thriving business attitude so crucial to an open economy. The only way to fight the plague of Martians is to work harder, redeem widespread nepotism and greed while tenaciously turning vices into virtues. 

The writer is a partner in PKF Malta, an audit and business advisory firm

gmm@pkfmalta.com