Public finances are resources entrusted to the State by its citizens, and those responsible for managing them must be prepared to explain clearly and honestly how they are used, Speaker of the House of Representatives Anġlu Farrugia said on Monday.
Addressing the European Court of Auditors Summer School at the Grandmaster's Palace in Valletta, Speaker Farrugia said that accountability must remain at the heart of public administration, particularly at a time of growing global uncertainty and increasingly complex financial systems.
Speaking before representatives of the European Court of Auditors, national audit institutions, Members of Parliament, academics and public officials, Farrugia said public audit should be viewed as far more than a technical examination of accounts and procedures.
"The true value of audit lies in determining whether public power has remained faithful to its purpose and whether citizens' money has been used properly, effectively and in the public interest," he said.
The Speaker said that Parliament's responsibility does not end once public expenditure is approved.
Instead, legislators must ensure that spending achieves its intended objectives, delivers value for money and addresses shortcomings identified by the Auditor General.
Audit reports, he said, should not simply be tabled and forgotten. Rather, they should prompt scrutiny, explanations and corrective action where necessary.
"Where the same shortcomings continue to appear year after year, Parliament must have the courage to ask why. Where recommendations are ignored, it must ask who is responsible," Farrugia said.
He warned that public confidence in institutions can be undermined when recommendations are repeatedly left unimplemented and deficiencies persist despite promises of improvement.
"Accountability without follow-up is unfinished accountability, and unfinished accountability is dangerous because it gives the appearance of scrutiny while allowing the substance of failure to continue," he said.
At the same time, Farrugia said that auditing should not be seen as a tool for embarrassment or blame. The purpose of effective scrutiny, he said, is to strengthen public administration and improve the functioning of the State.
"The best audit report is not the one that embarrasses, but the one that improves the State," he said, adding that public officials acting in good faith should welcome transparency because it helps distinguish responsibility from negligence and public service from self-interest.
Placing his remarks within a broader European and international context, Farrugia described the current geopolitical climate as a "new world disorder," characterised by conflict, inflation, migration pressures, climate risks, artificial intelligence, cybersecurity threats and rising defence spending.
In such an environment, he said, audit institutions must be capable of navigating growing complexity while Parliaments retain their ability to scrutinise effectively.
Farrugia also highlighted the importance of accountability within the European Union, arguing that the European project depends not only on treaties and shared values but also on sound financial management and public trust.
"Europe cannot ask citizens for trust while treating accountability as secondary," he said.
He added that when public funds are allocated to defence, security, emergency responses or solidarity measures, citizens have a right to know whether that spending is achieving its intended aims and reflecting the values it is meant to uphold.
Concluding his address, Farrugia said public audit provides discipline in uncertain times and helps reinforce confidence in democratic institutions.
"The true measure of public expenditure is not found only in accounts, reports or balance sheets; it is found in the confidence of the people," he said.
"When the people know that their resources are protected, their trust is strengthened. And when the trust of the people is strengthened, democracy itself is strengthened," Farrugia said.