Malta’s party financing system is broken. As it stands, our political landscape is being shaped by the richest individuals, who donate not out of principle or ideology but to ensure their influence, no matter who wins.
It’s time for a radical overhaul – starting with a ban on private donations to political parties and people involved in politics as well as more transparency across the board. This must be complemented by electoral reform.
Take property magnate Joseph Portelli, who casually admitted in a recent ONE TV interview to donating to both major political parties at the same time. This isn’t about supporting a political vision for the county’s future; it’s about securing influence.
The rich are hedging their bets, ensuring their interests remain protected, betting on both horses in the race, leaving the rest of us stuck with the consequences. Overdevelopment, disappearing public spaces and Malta’s ever-expanding concrete jungle – these aren’t accidents. They’re symptoms of a system where money speaks louder than people.
Critics of state financing often argue that it’s expensive but the price we are paying today – both economically and socially – is far greater. Political scientist Susan Rose-Ackerman, an expert on political corruption, explains: “When politics relies on private donations, the voices of the poor and middle class are drowned out by those with the most financial clout.”
This imbalance skews policy decisions, leading to environmental degradation, compromised public health and an overall decline in quality of life.
Even high-net-worth individuals and businesses, unless their finger is in the pie, are finding it difficult to make Malta their base because of this unchecked system – it’s driving the genuine ones away.
We need to look at countries that have their act together. Germany and Sweden have long introduced state financing for political parties, and for good reason. As The International Journal of Constitutional Law points out, “public funding reduces the potential for corruption by limiting private financial influence over political parties, thus promoting a healthier democracy”.
It levels the playing field, ensuring that policies are shaped by the public interest and not by who can write the biggest cheque.
Malta’s democracy cannot be left at the mercy of the rich and powerful any longer- Cyrus Engerer
But let’s not stop there. Reform must cover donations to individual persons involved in politics and the gifts they receive – look at the UK right now. The donations and gifts scandal involving British MPs and the prime minister himself, even though all declared and all legal, has left the public disillusioned and raised serious concerns on accountability. Imagine opening that Pandora’s box in Malta.
The Council of Europe and GRECO (the Group of States against Corruption) have long called for member states, including Malta, to tighten party financing regulations.
We have a responsibility to adhere to these standards. GRECO has repeatedly urged for greater transparency and stricter oversight of political financing, yet, Malta lags behind. This is not just about national reform – it’s about fulfilling our obligations as part of the European community of values based on the rule of law, democracy and fundamental rights.
Spain offers a valuable lesson: following corruption scandals involving illegal political donations that rocked the conservative Partido Popular, Prime Minister Mariano Rajoy was forced to introduce sweeping reforms by the progressive political forces and the people who took to the streets. The Gürtel and Bárcenas scandals led to tighter regulations on party finances and an outright ban on corporate donations.
According to Transparency International, the reforms “helped rebuild trust in Spain’s democratic institutions and reduced the risk of political capture by private interests”.
The message is clear: Malta’s democracy cannot be left at the mercy of the rich and powerful any longer. We must cut the strings and ensure that our political parties serve the people, not the pockets of the few.
Reforming party and politician financing isn’t a nice-to-have; it’s a must-have in a well-functioning democracy, and it needs to happen now.
Cyrus Engerer is a former Labour MEP.