Malta Chamber president Marisa Xuereb has sounded the alarm over a culture of political clientelism while rebuking politicians for allowing developers to take advantage of planning loopholes.

Addressing Robert Abela's new cabinet on Monday, Xuereb did not mince her words: "Over the past years we witnessed a tendency of abuse of accessibility to politicians.

"We witnessed people circumventing institutionalised inefficiency by speaking to someone they know, who works for a particular entity, in order to be seen to within a reasonable timeframe.

"These practices propagate a culture of clientelism that increase inefficiency and lack of transparency," Xuereb told new ministers, adding that efficient technology could help stamp out clientelism and improve accountability. 

Xuereb noted that the chamber had no partisan interests, and considering the various economic sectors and diverse entrepreneurs it represented, it could not afford to be a single-issue lobbyist. 

Over the past year alone, it had met with over 50 members of the diplomatic corps or representatives of international entities in a bid to improve Malta's reputation abroad, she added.

"We, therefore, ask you to help us out. The government's strong mandate brings with it not only a lot of authority but also a lot of responsibility.

"We need a zero-tolerance policy for any kind of abuse that is facilitated by those entrusted with a political or administrative capacity."

Xuereb said the chamber also called for good governance within business circles, urging everyone to pay their dues and abide by employment legislation. 

'Excessive development'

It also called for respect for legal and regulatory frameworks and urged against taking advantage of loopholes "as is often happening when it comes to planning permits".

"We feel that there is a lack of political will at addressing excessive development. Developers do their utmost to stretch the limits of existing planning regulations.

"And, just like everybody else, you know that the splitting of large projects into a number of smaller projects is a way of avoiding certain planning considerations. For as long as this behaviour continues to be tolerated, so will speculative development," she said.

Xuereb expressed hope that over the coming two years, the new cabinet will not shy from seeking a balance between development, the environment and cultural heritage.

'More transparency with independent media'

In her address, Xuereb also expressed concern over the impact of the Ukrainian war on the economy and, separately, the shortage of resources within the government and the judiciary sectors.

Inefficient courts, she said, were detrimental to businesses.

Xuereb concluded her address by saying it was important to address the prejudice about Malta brought about by recent events.

"The only way we can do this is by being more transparent with independent media and ensuring a more balanced public broadcaster. 

"The subtle propaganda by national broadcasting media has an impact on the engagement between the media itself and a large sector of society."

She noted that the chamber itself, with the help of Malta Enterprise, had invested in a weekly, 15-minute programme about local businesses.

However, this programme is being aired on Thursdays at 3.15pm, at a time when audiences interested in the topic will definitely not be watching TV, she explained. 

The Malta Chamber on Monday met the new cabinet. Photo: ChamberThe Malta Chamber on Monday met the new cabinet. Photo: Chamber

'Helping the few to the detriment of the many'

During the meeting, the chamber's president listed a series of events that over the years helped a few businesses but were detrimental to many:

  • Public procurement procedures, especially when it comes to direct orders.
  • In sectors where the government is the largest, or only client, such as medicine and elderly care, the purchase conditions set by the government make it difficult for private operators to turn a profit.
  • Regulatory entities compete with the private sector, such as in tourism or waste management sectors.
  • Public corporations and regulatory authorities that operate without service level agreements do not commit to a timeframe or price when providing a service to the private sector.
  • The proliferation of government entities that take on tasks which could be otherwise subcontracted to the private sector.
  • Expenditure on promotional activities, especially one-time events, that could otherwise be put to use in a better manner. The participation of Malta in expos abroad should be well planned. 

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