Updated 12.50pm with ADPD statement
The Malta Chamber on Monday warned that systematic abuses were costing millions in public funds that could easily be invested in systems that would eradicate the possibility of rackets.
In a statement a day after Times of Malta revealed ex- Labour MP Silvio Grixti was implicated in a huge benefit fraud sheme, the chamber of commerce slammed politicians "who made headlines for the wrong reasons" and called for "a zero-tolerance policy" on abuse.
"The pervasiveness of practices that propagate a culture of abuse of power and clientelism puts a heavy onus on the government to urgently implement digital systems that increase efficiency, provide full transparency and ensure fairness," it said.
"The monies being squandered through such rackets could be better used to support those who really need help and to address issues which are leading to the country’s deterioration such as the traffic situation, the lack of investment in utility infrastructure, the shabbiness and proper waste management."
On Sunday, Times Of Malta revealed Grixti has been implicated in a years-long racket to help “hundreds” of people fraudulently receive monthly disability benefits they were not entitled to.
The Chamber warned on Monday that lack of appropriate enforcement, investigation and subsequent prosecution as well as failure to act on findings highlighted by the NAO and the Ombudsman were costing the country dearly and reflected badly on governance.
"The Malta Chamber expects the government's strong electoral mandate to be reflected in more decisive action and a zero-tolerance policy for any kind of abuse by everyone, particularly that facilitated by those entrusted with political or administrative responsibility.
"Politicians and public officials who make headlines for the wrong reasons, are putting in disrepute the entire political class and the public service, including those who are doing a good job in their areas of responsibility."
When the personal conduct of those who abused their power deviated from what was rightfully expected by the law-abiding, hard-working and tax-paying citizen, it had far-reaching effects on everyone, including businesses, the chamber said.
"Practices that encourage people to opt out of productive employment, either by taking up public sector jobs requiring minimal effort or by applying for benefits under false pretences, have a destabilising effect on our labour market," it added.
Last week, the Gozo bishop criticised people who got paid for no-show jobs, saying they were deceiving their fellow citizens and imparting rotten values to their children.
Bishop Anton Teuma warned churchgoers in Għajnsielem that some people in Gozo were taking salaries for jobs they only showed up briefly for.
'Abusive practices impact whole economy'
In its statement on Monday, the chamber said that at a time when everyone was concerned about persistent inflation, it was opportune to point out that such abusive practices ultimately had an inflationary effect on the whole economy, because they exert even more pressure on a very tight labour market.
They also increased public spending, which increased government debt, which is in turn financed by the issue of government bonds, which in turn put pressure on interest rates to increase, thereby increasing the cost of funding for everyone.
"The Malta Chamber therefore appeals to all politicians and policymakers to cut down on clientelism, to think about the repercussions of their actions and about the critical role they play in setting expectations and determining the choices people make in terms of their own employment and recruitment of others, consumption, savings and investments, and planning for their future.
"Proactive policymaking requires a thorough understanding of the interrelationships between all this, and of people’s perceptions of corruption, enforcement and fairness."
Ahead of the 2024 budget, the Malta Chamber is calling on the government to:
Fully digitalise government services with real-time tracking, whereby applications requiring approvals from various professionals/entities would be submitted directly into the system using their digital identity to eliminate the possibility of submission of forged documents.
Regularly rotate staff involved in the processing of sensitive applications to reduce the possibility of tampering with systems and improve the likelihood of detecting attempts to tamper with systems very quickly.
Automate various customer care and verification processes to improve efficiency, transparency and consistency.
Maintain accurate records on the provision of public services and reform the public procurement processes to ensure a level playing field.
Draw a clear line between political responsibility at the ministerial level and the administrative and executive responsibility of the civil service. For example, deciding whether to privatise the provision of a public service or not is a political decision, but selecting the contractor is a matter of executive competence.
Allow NAO to scrutinise public contracts above a certain value without requiring a formal request and outrightly prohibit the use of side letters that significantly modify key provisions of an agreement, like offsetting financial risks.
Cap the number of people holding a position of trust and limit positions of trust to those of high political sensitivity or carrying specific security risks. Compensation and benefits received by people in positions of trust need to be fully disclosed and independent audits carried out regularly against stipulated compensation criteria.
'Fraud is never justified, justice must be served' - ADPD
Reacting to Times of Malta's Sunday revelations about the former PL MP, ADPD said in a statement justice must be served and every person involved must pay for their crimes, irrespective of who they were.
"If current laws of social security are not sufficiently up-to-date, they need to be revisited. The vulnerable should not be made to suffer twice by being forced to use fraudulent means to seek the required help," the Green Party said.
Deputy chair Mina Jack Tolu said the government had the power to change and implement laws that ensured people did not suffer poverty.
Chair Sandra Gauci added that every official, PL operative and activist involved in the matter must be brought to justice, whether their gain was financial or political.