Issue link: https://maltatoday.uberflip.com/i/1053035
9 maltatoday | SUNDAY • 18 NOVEMBER 2018 JOSEPH Muscat's decision to retain Keith Schembri and Konrad Mizzi (below right and bottom left) in the face of evidence that they owned off- shore companies in Panama has been Malta's greatest political mystery for the past three years – even more so after evidence showing they had two Dubai-based companies as target cli- ents, one of which – 17 Black – is owned by Electrogas shareholder Yorgen Fenech, who denies any wrongdoing. Sacking Mizzi and Schem- bri is still seen by many as the only logical thing for the Prime Minister to do. So why is this not the case? His official line is that as a believer in the rule of law, Muscat is waiting for the out- come of a magisterial inquiry called for by his nemesis Si- mon Busuttil, while he is also appealing to stop it from even hap- pening. So what is the real reason for Muscat's refusal to do what is e x p e c t e d of him? 1. No Keith, no Muscat It is often said you can't have Muscat without the Schembri-Mizzi combo, an integral part of the PM's 10-year plan to take Malta into a more liberal and pro-business direction. Schem- bri and Mizzi may well have been the enablers when breaking the ice within business circles and convincing the establishment to accept a Labour gov- ernment. It is often suggested that certain al- liances with big business like citizen- ship experts Henley predate the 2013 election, and that Schembri may have opened the way for Labour to gain their trust. Mizzi was also pivotal in lending credibility to Labour's energy plans before the 2013 election. This double-act could have regaled Muscat his two super-majorities in both 2013 and 2017, helping him to avoid the fate of Alfred Sant's weak and short-lived government. In short, the trio are in this together right to the very end. But is Muscat creating a system that can outlast him, or will a new Labour leader have to clean up the Augean stables? 2. The end is near, anyway Muscat's inaction at this par- ticular juncture is tied to his decision to quit politics some time after next year's MEP election. If that is the case why should he turn against his closest allies just months before quitting? The latest revelations may have a greater bearing on who Labour will choose as the next leader than on Schembri and Mizzi's fate. Will they choose some- one who will ditch them, or someone who keeps them or replaces them with simi- lar characters? Deputy PM Chris Fearne (bottom, cen- tre) is a district rival of Mizzi and has already had the ex- perience of having to clean up the mess Mizzi left behind after he sold public hospitals to an offshore company. If they feel threatened, how will Schembri, Mizzi and their allies react? 3. Elementary electoral math, my dear Muscat probably thinks he has more to lose by ditch- ing Keith and Konrad, than by keeping them on board. After all he still won an election with a 35,000-vote margin after Panamagate and the Egrant allegations. He has very little to fear in terms of loss in electoral support now that the Opposition is still in chaos. Neither has any internal party critic emerged to represent those Labour voters who feel frus- trated by the situation. Mus- cat's tight grip on the party ensures that this segment of the electorate has still not found a reference point. Neither has Muscat much to lose in terms of a future job in Brussels sim- ply because such hopes were already dashed by Daphne Caruana Galizia's assassination. 4. Scandal fatigue Buoyed by his absolution from the Egrant affair, Muscat banks on public fatigue with scandal and a climate of mistrust in the fifth estate that is itself fuelled by the Egrant allegations. 17 Black is actually backed by evidence, corroboration of sources and the terse non-denials of the protagonists, but Egrant made a large segment of the electorate immune to fur- ther 'news' related to the same protagonists of Panamagate – despite the seriousness of the new evidence, it is now per- ceived as yesterday's news by many. Labour's media machine has been very efficient in giving the perception that this is just another allega- tion as Egrant was, rather than a case based on new sub- stantial evidence. 5. Business is booming Historically corruption has never been an election-win- ner. The outcry against cor- ruption only resonated in 1987 and 2013 simply because it coincided with an economic downturn and a yearning for change after a long period of dom- inance by one particular party. Probably had Pan- amagate occurred in a pe- riod of economic decline, Muscat would no longer be in power. People gener- ally get angrier at corruption when they are suffering, but are more compliant when they are prospering. 6. Muscat is implicated Some still suggest that Muscat does not sack Mizzi and Schem- bri because he is personally involved in their shady business. These doubts are demeaning for a politician like Muscat who is known to have ambitions of statesmanship and who cares about his legacy. Un- like Egrant – in which Muscat took the matter to a magistrate – it is Muscat's lack of political action that keeps all sorts of conspiracy theo- ries alive. Insiders point out that the wilder these conspiracy theories are, the stronger Muscat becomes. Indeed, by constantly raising the stakes by en- dorsing unproven allegations, former PN leader Simon Busuttil (left) had often given Muscat space for manoeu- vre to turn the tables on the Opposi- tion. In this sense Muscat's offer now to resign if implicated on any wrongdoing on 17 Black may betray Muscat's disappoint- ment at the fact that this time around, the Opposition was more prudent in its ap- proach, asking for the res- ignation of Schembri and Mizzi and not of Muscat. But have we now reached a point where questions on Muscat's personal role in this saga become unavoidable? People are justifiably baffled by Muscat's declaration that he does not "interfere with his chief of staff's business affairs" when asked whether he had ques- tioned Schembri on 17 Black: his statement that he will rein him in only if implicated in any "wrongdo- ing" does not absolve him from his own political responsibility to take action against government officials for their actions while in office. The PM owes the country an expla- nation on when he learned about his closest allies' offshore interests and dealings. For apart from a judicial truth, a political truth still needs to be estab- lished on Panamagate. Muscat may be banking on people getting tired of hearing about the same things. But he also keeps on de- nying them closure. jdebono@mediatoday.com.mt NEWS Six reasons Muscat is keeping Schembri and Mizzi Why does Joseph Muscat keep the mother of all conspiracy theories alive by keeping Schembri and Mizzi in office? JAMES DEBONO asks The PM owes the country an explanation on when he learned about his closest allies' offshore interests and dealings. For apart from a judicial truth, a political truth still needs to be established on Panamagate If they feel threatened, how will Schembri, Mizzi and their allies Muscat probably thinks he has more to lose by ditch- ing Keith and Konrad, than by keeping them on board. After all he still won an election with a 35,000-vote margin after Panamagate and the Egrant allegations. He has very little to fear in terms of loss in electoral support now that the Opposition is still in Neither has any internal party critic emerged to represent those Labour voters who feel frus- trated by the situation. Mus- Historically corruption has never been an election-win- ner. The outcry against cor- ruption only resonated in 1987 and 2013 simply because it coincided with riod of economic decline, Muscat would no longer be in power. People gener- ally get angrier at corruption when they are suffering, but are more compliant when they are prospering. 6. Muscat is implicated Some still suggest that Muscat does not sack Mizzi and Schem- ents, one of which – 17 Black – is owned by Electrogas shareholder Yorgen Fenech, who denies any Muscat is waiting for the out- come of a magisterial inquiry mon Busuttil, while he is also appealing to stop it from even hap- pening. So what is the real reason for Muscat's 2. The end is near, anyway Muscat's inaction at this par- Schembri and Mizzi's fate. Will they choose some- one who will ditch them, or someone who keeps them or replaces them with simi- lar characters? and has already had the ex- perience of having to clean up the mess Mizzi left behind non-denials of the protagonists, but Egrant made a large segment of the electorate immune to fur- ther 'news' related to the same protagonists of Panamagate – than a case based on new sub- Historically corruption has never been an election-win- ner. The outcry against cor- ruption only resonated in vre to turn the tables on the Opposi- tion. In this sense Muscat's offer now to resign if implicated on any wrongdoing on 17 Black may betray Muscat's disappoint- this saga become unavoidable? People are justifiably baffled by Muscat's declaration that he does not "interfere with his chief of staff's business affairs" when asked whether he had ques- tioned Schembri on 17 Black: his statement that he will rein him in