The many scandals hitting Malta are damaging the country’s reputation as an investment destination, the outgoing director general of the Malta Employers’ Association has warned.
“We do have a very serious and worsening governance deficit. But the fact that you open the newspapers and you come across a new scandal every day is simply not sustainable.
"It is damaging our reputation as an investment destination – and Malta does have quite a bit to offer. Sadly, our reputation is getting worse by the minute,” Joe Farrugia said.
Farrugia, who has occupied the top role at MEA since 2001 recently made way for Kevin Borg.
In an interview with Times of Malta, he cited the lack of good governance as the biggest challenge for Malta’s economy, saying it was proving a stumbling block towards attracting new investment and pushing youths away from the country.
He said the Vitals hospitals inquiry and “the disappearance of €400 million” from Malta’s public coffers should be an eye-opener on the way things were managed. But, he added, the social benefits scandal may be even worse because it impacted work ethic and the values of Malta’s young generation.
'How does that affect the values of our young generation?'
“You hear about many individuals enjoying life because they are getting these funds from the Social Security Department without working. How does that affect the work ethic? How does that affect the values of our young generation?”
The social benefits racket saw hundreds of people being given falsified documents which they then used to apply for monthly severe disability benefit payments, costing taxpayers upwards of €5 million.
Farrugia says it is no wonder so many of Malta’s youth feel disenchanted, indifferent, and the urge to seek a better life abroad.
The outgoing director general also surveyed the general state of the economy, stressing on the need for a revamp which leaves an economy relying less on cheap labour and construction and more on diversification.
His comments come after the EY Attractiveness Survey for Malta published last October ranked environmental, social and governance matters as the fourth top-most priority for Malta to remain globally competitive.
At the time of the release of the EY survey, the magisterial inquiry into the Vitals Healthcare deal recommending charges against several individuals, including politicians and companies, was still months away.
The full interview will be uploaded separately.