‘Crisis in governance threatens Malta’s security and stability’ – The Malta Chamber

The Malta Chamber of Commerce, Enterprise, and Industry is “deeply concerned” about ongoing governance failures that are harming Malta’s reputation as a credible jurisdiction.

The latest strongly worded statement from the representative body of Malta’s largest businesses comes as yet another scandal plays out on social and traditional media, with allegations that thousands of Maltese identity cards were issued on fraudulent grounds in exchange for bribery payments.

“The identity card scandal is a symptom of broader governance failures,” said The Malta Chamber on Saturday (today) morning. “Businesses rely on official documentation, such as ID cards, for their proper functioning, and management of commercial risk.”

The “gross mismanagement and failure in upholding good governance,” it continued, is symptomatic of a "complete breakdown in the distinction between Government, civil service and political party in power.”

The business lobby questioned Government's silence on this issue, which it said “raises suspicions about the severity of the scandal and its potential to severely damage Malta's international standing.”

It said that the lack of good governance “has slid to abysmal level, resulting in ethical companies being faced with higher commercial risk arising from uncertainty on the veracity of official document.”

It added: “Moreover, The Malta Chamber is alarmed by the blurring of lines between Government, civil service and the political party in power. This lack of crucial separation leads to the collapse of democracy.

“The lack of transparency in employment contracts, unclear procedures for handling high-ranking officials under investigation, and the frequent turnover of CEOs and Chairpersons within public institutions further destabilise these entities and undermine public trust.”

It warned that the long-term implications of these governance failures could be “devastating” for Malta's international reputation, business environment and public confidence: “The lack of trust in critical systems signals a deeper crisis in governance that threatens the nation's security and stability.”

The Malta Chamber pointed to two detailed documents (here and here) it presented that called for sweeping changes to ensure that good governance is placed at the heart of Government.

“These documents provide recommendations to protect institutional integrity. Unfortunately, these recommendations have largely been ignored, as evidenced by the continuing governance breakdowns.”

It therefore called on Government to take “immediate action to restore good governance.”

This includes ensuring transparency in all appointments and processes, addressing the blurring of lines between Government, civil service and the political party in power, and also rebuilding the public’s trust in Malta's institutions.

“Without urgent reforms, the nation risks further damage to its reputation and undermining the foundations of its success.”