In a democracy, citizens expect those in a position of trust to act honourably and do the right thing at all times, even when no one is looking. Integrity is essential for building strong institutions and assures citizens that the government is working in their interest, not just for the select few.
Integrity is not just a moral issue. It is about restoring trust and not just in government but in public institutions, regulators, banks and corporations. In the last few years, the abuse of trust has led to a crisis of credibility for public officials, ranging from cabinet ministers to regulators and heads of institutions. This damage can only be addressed when politicians and public officials who failed the integrity test hold themselves accountable for their failures.
The governor of the central bank represents the country in essential meetings and sits on the board of the European Central Bank. Governments usually nominate, as their central bank governor, a person with impeccable academic qualifications and a proven record of integrity in his career and private life.
The governor of the Central Bank of Malta is the former finance minister, Edward Scicluna. His academic qualifications are undoubted.
His performance as finance minister is questionable. Thanks to various inquiries, the public has learned of the massive failures of governance that occurred in the few years Joseph Muscat was prime minister.
Scicluna was a senior member of Muscat’s cabinet. He declared under oath that he was often sidelined in important decisions that involved significant public expenditure. The Electrogas project, the contract for the refurbishment of St Vincent de Paul residence, the privatisation of three public hospitals… all were tainted with abuse of power, as confirmed by reports from the auditor general.
Scicluna claimed he had little or no say in the decisions taken in these contracts, arguing that the decision makers were a small group of politicians and their cronies who acted as a de facto “kitchen cabinet”.
The fact is, a senior cabinet minister responsible for the public purse should never have tolerated such a severe failure of public governance. Scicluna did, and by doing so, he confirmed that integrity in his public duties was not his priority.
Scicluna is now out of politics. As central bank governor, he has to satisfy the proper scrutiny that all bankers undergo. The European Banking Authority, which sets the ethical standards and other qualifications for bankers, insists that bank directors should demonstrate ‘independence of thought’.
This means they are able to act on what they believe is right for the institution they serve and not what more powerful colleagues say or do.
When Scicluna was a minister in Muscat’s cabinet, he repeatedly showed he could not act as an effective gatekeeper against the abuse of taxpayers’ money by some of his colleagues.
In politics, inactivity is often equivalent to surrender. Scicluna had a duty to stop the rot that has now landed the country in a quagmire of reputational damage. He failed the integrity test. He does not deserve to represent the country in important international institutions that closely watch our efforts to turn the page on corruption and abuse of power.
There were new calls for his resignation earlier this week following his defeat in a libel suit against Simon Busuttil, over the latter’s statement that Scicluna was “embroiled in a money-laundering investigation”.
Scicluna’s presence at the helm of the central bank presents an obstacle to the healing process in public life that the country urgently needs to get on with.