Revelations about a scandal in the way Enemalta bought a windfarm in Montenegro were yet another blow to Malta’s international reputation which could have long term repercussions on the economy, the Malta Employers' Association has warned.

"As more scandals connected to Malta are hitting the international media, the MEA fears that the situation could hit a point of no return and it will take decades to restore Malta’s standing as a reliable investment destination," the association said.

Referring to an approaching deadline by the Council of Europe's Moneyval for the introduction of an effective mechanism to fight money laundering, the MEA said Malta cannot afford to lose its standing and be grey or black-listed.

Governance reforms were therefore critical to reverse 'this descent towards chaos'.

"Although there can never be a system that offers complete safeguards against corruption, the current situation whereby members of parliament are also involved in the executive, the dependence of political party financing on corporate donors, the gratuitous manner in which persons of trust are appointed and the proximity of politicians to criminal elements of society are a hotbed for corrupt practices," it said.

The Association urged the government to adopt a non-compromising stand towards corruption, irrespective of who is involved, and to engage with the social partners to start much needed institutional reforms.