The accountability of the police and Attorney General is “deficient” and reports on allegations related to money laundering, corruption and abuse of power are often not followed up with charges, the European Commission has said in a country report about Malta.
The government has been rocked by allegations of high-level corruption over the past years, with little consequence for those involved.
Prime Minister Joseph Muscat has continued to protect his top aide Keith Schembri and Tourism Minister Konrad Mizzi after their plans to receive payments totalling $2 million via offshore companies were revealed in the Panama Papers.
The police failed to open an investigation when their plans were revealed in 2016 and former Opposition leader Simon Busuttil had to ask the courts to take action.
Read: Simon Busuttil embarks on new Panama Papers battle
Malta’s anti-corruption institutional framework presents “serious shortcomings”, the Commission said in its report.
The report flags up the “structural flaws” inherent in Malta’s corruption watchdog, the Permanent Commission against Corruption. These flaws hindered the Commission’s ability to fulfil its role independently and effectively, it said.
The facts that its membership and appointment of special experts depended on the Prime Minister and its findings were reported to the Justice Minister were viewed as problematic by the Commission.
Very limited transparency
“It is unclear what follow-up measures have been taken on the Permanent Commission against Corruption reports or why only one case was forwarded to the police for further investigation.”
A 2017 report by the corruption watchdog said it was “morally convinced”an attempt had been made by former Labour secretary general Jimmy Magro to solicit a kickback on a public waste management tender.
The police never took any action against Mr Magro. The former Labour official has since filed court proceedings claiming he suffered huge reputational and financial damage thanks to the corruption watchdog’s report.
Referring to last year’s opinion by the Venice Commission about Malta’s institutional setup, the European Commission report acknowledges the “long standing” double role of the Attorney General as an adviser/representative of the government and as a prosecutor.
It said the police’s economic crimes unit appears understaffed although a major reform is planned to increase its capacity in 2020.
According to the report, the unit investigated 20 bribery cases in 2016, nine in 2017 and eight until October 2018. Two people were indicted in 2016, one in 2017 and none in 2018.
Conflicts of interest by sitting MPs also came under the Commission’s microscope: part-time salaries received by MPs affect their ability to operate independently from the government, and this practice was exacerbated by the appointments of MPs to important paid posts such as heads of a public authority.
The Labour government had ushered in changes allowing MPs to sit on government boards and head authorities shortly after sweeping into power in 2013.
On Malta’s controversial passport sale scheme, Brussels said transparency and governance could be improved, also noting the lack of a regulator and “very limited transparency” as regards the Maltese residence scheme for wealthy investors.