Issue link: https://maltatoday.uberflip.com/i/1223727
19.03.2020 8 OPINION George Mangion The War of the Worlds George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island R eading through the weekend press, critics waxed lyrical on the frantic emptying of shelves of su- permarkets by shoppers buying essential foods and face masks. e hoarding is caused by fears about any potential scarcity of supplies fol- lowing the intensive corona virus scare killing thousands. We have over 38 infected persons (mostly imported). Naturally party apologists in their entirety feel angry and betrayed saying such scaremonger- ing was the menace of a hidden hand aimed to sabotage the nation's well be- ing. is angst comes four months weeks since the collective resignation on 26th November of two senior ministers and a chief of staff. Joseph Muscat resigned voluntary on 12 th January and his re- placement - Dr Robert Abela, a young lawyer with limited cabinet experience immediately calmed down protests with a smile; he started to prune the garden (a light touch was administered but this gave hope that we turned the corner and the sins of corruption will be atoned). His stars were not favourable follow- ing the sudden collapse of a house next to a building site. is tragedy sent a mother of two to her untimely death. Her demise was deeply felt by the public to be avoidable given that the authorities had previously legislated to ensure safety during excavation in building sites. All the while, the Opposition was baying for justice and pleaded in par- liament against the selling of three hos- pitals to Vitals Health Care and a secret pact signed with the Azeri state for Electrogas (the selection board in both tenders was headed by a partner from Nexia BT). While the oil price tumbled to $30, Malta did not benefit, since the Elec- trogas deal had a fixed price supplying electricity spanning 18 years. Millions were squandered following the bankruptcy of Vitals group. e private-public-partnership was paid €240m in the past four years pursuant to a 30 year contract to rehabilitate and run three major hospitals. Cosmetic embellishments were car- ried out, while the Opposition has tak- en three ministers to court to account for the millions so squandered. e coup de grace was four Panama compa- nies commissioned in 2014 from Nexia BT ( the managing partner previous- ly enjoyed patronage from the justice ministry). is was a potent scoop posted in a blog by a journalist - she was slain in a car bomb in 2017. Daphne Caruana Galizia revealed two of these Panama structures belong to the chief of staff and Dr Mizzi, then health minister. is long introduction needs to be read in the light of Malta running an economy which prior to the onset of the pandemic was the envy of all EU states. A multi-million euro property market has been built over the past sev- en years and Malta has never witnessed such grandiose projects. Public land worth millions was grant- ed at fire-sale prices to encourage pro- motion of upmarket tourism. Such af- fluence came with a wanton greed for erecting of soulless concrete structures that sent the average rents payable-sky high. Money was no problem — yet the effect of increased demand resulted in acute shortage of workers which was solved by recruiting migrants. In fact, thanks to Muscat 's adminis- tration, the economy has turned the ta- bles with a feel good factor that saw the nation throwing caution to the wind. e slogan was 'Aqwa Zmien". Let us celebrate our fortune while mi- grants clean our streets and serve us in hotels and restaurants. An artificial sense of promiscuous living made us believe that the party will never stop- but it did with the discovery last De- cember of a lethal virus in Hubei China. So one may ask what is so wrong now in the isle of milk and honey? Perhaps history repeats itself and human nature tends to score its own auto goals. e Bible story of the seven years of bounty to be followed by another seven years of famine rings familiar. In context, I found myself reading the seminal yet controversial book e War of the Worlds, by HG.Wells, which sublimely sets a parallel of the fear and devastation suffered by unprecedent- ed Martian attacks. e novel written between 1895 and 1897, is a narration about a conflict between mankind and an extraterrestrial race. is fiction gave me a shocking re- minder that the world is being shaken to its knees by an unstoppable pan- demic (Covid-19) for which as yet no vaccine exits. It has killed thousands while infection grows exponentially in every corner of the globe. is shocking narrative by H.G.Wells is a good pointer to elucidate the par- adox that Malta has just experienced. e novel also drew upon a common fear which had emerged in the years approaching the turn of the century, known at the time "fin de siecle " or 'end of the age', which in our situation one can equate to the apocalypse of the unstoppable virus. It is a stark reminder that the last pan- demic which started in 1918, namely Asian flu, Swine flu, SARS and Ebola (among others) killed over 50 million world wide. Notice how our streets are bare as people fear physical contact and stay indoors. A 14-day quarantine mandat- ed for all incoming passengers by air or sea is enforced by police knocking on doors and charging a heavy sum for those caught breaking the seclusion pe- riod. We face a dichotomy in that while Muscat's seven year regime enriched all facets of the population (with particular emphasis to soldiers of steel ) yet this legacy was rated by the Opposition as corrupt - the fruits of ill-gotten gains. State propaganda helped create a false sense of a virtuous administration un- der which the going was good and the island is now rich-in surplus. In hindsight, we observe how private vices result in public benefits like ex- panded industry, three million tourists with full employment to boot. Bank credit is cheap and mortgages are af- fordable to the lower income earners. Cheap shopping trips to Dubai for the entire family became popular while many can sport a second imported car even though the cost of a garage has escalated and is beyond the means of many households. is is a paradise state, where society flourished in many ways, yet on closer scrutiny it transpires that no trade/pro- ject was pure as the driven snow. e Opposition party (itself in disarray) regularly preached to its faithful, point- ing incessantly to moral corruptness. Such vices served an indispensable role in the economy during the Muscat golden regime gained by stimulating trade, industry and upward economic improvement i.e., public benefit. Today, we face a drastic change in mentality that drives thousands of white collar workers to telework at home so as to avoid all physical con- tact (except for procurement of med- icines and essential food). In less than a month, this pandemic has devastat- ed the domestic economy. All schools, university, hotels, restaurants, gyms, cinemas, bars and places of worship are shut as if the Martians have landed and citizens fear for their life. is is anathema to inculcate a thriv- ing economy. e solution of working at home to minimise human interac- tion is a smart move but business suf- fers as efficiency and cash flow drops. International business - so crucial to an island economy - is currently on the rocks. Layoffs and redundancies in the retail, manufacture, financial services and hospitality sector are piling up and the Chamber for SME's pleads with gov- ernment to dig deeper in its pockets. A mini budget helps to assist its mem- bers by subsidising salaries and reduc- ing taxes. Sadly, the only way to kill the Martians is to produce an effective vac- cine.