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3 NEWS 15.10.2020 FROM PAGE 1 And discussions on a possible reduc- tion of VAT rates in various sectors are still ongoing, the sources said. Other measures, such as the vouchers issued earlier this year to help prop up the tourism industry and the retail sec- tor, will also feature in the budget, as the government aims to alleviate the impact of COVID-19 on Maltese businesses. is confirms what economy minis- ter Silvio Schembri had previously told BusinessToday. Schembri said that the budget would include measures to con- tinue to assist businesses - and families - to weather the economic fallout forced upon them by coronavirus. He said that as it had done during the first wave of the coronavirus, the government would continue to assist Maltee businesses as they struggle un- der a prolonged period of uncertainty due to COVID-19. "Malta was amongst the first countries in the EU that immediately started to disimburse financial aid to protect busi- nesses and most importantly safeguard jobs." he said. Compared to other countries, Malta offered a holistic phased economic plan aimed at mitigating as much as possible the economic impact brought about by the pandemic followed then by a robust regeneration economic plan. "At all times as a Government we made sure to stand shoulder to shoul- der with our businesses. Our stance and approach was even lauded by the recent S&P report which black on white said that if we hadn't taken such approach the results would have been catastroph- ic on our economy," Schembri said. "Having said that discussions pursued with all stakeholders and the upcoming budget will continue to assist families and businesses." Budget 2021: Discussions on VAT reduction still ongoing Economy minister Silvio Schembri said that the budget will include measures to continue to assist businesses - and families - to weather the economic fallout forced upon them by coronavirus MATTHEW VELLA THE chairman of the Malta Tourism Authority said that it was outgoing prime minister Joseph Muscat who had instructed tourism chief Johann Butt- igieg to give his former minister, Kon- rad Mizzi, a three-year consultancy job worth €241,000 upon his resignation. e letter from Gavin Gulia to public standards commissioner George Hyzler is included in a report on the €80,400 a year revolving-doors job given to Mizzi, and withdrawn by Robert Abela soon after, following a complaint by Green Party chairperson Carmel Cacopardo. In his verdict, Hyzler declared that Muscat's direct order was against the law, as laid down in the Standards in Public Life Act, as well as a breach of ministerial ethics for behaviour that did not respect the country's laws. "In my view, Dr Muscat's instruction for Dr Mizzi to be engaged as consult- ant is a: discretionary power that repre- sented an abuse of powers as laid down in Article 22 [of SiPL Act]; a breach of ministerial ethics that obliges ministers to see that departments and entities under their purview are managed prop- erly and diligently; a breach of ethics where ministers are required to exercise the highest level of diligence on public funds." Muscat himself was asked to comment on his decision, to which he replied to Hyzler that even during the Decem- ber crisis - when his chief of staff Keith Schembri resigned in the wake of the arrest of Yorgen Fenech as the alleged mastermind in the Caruana Galizia as- sassination - "government's responsi- bility was to give the tourism industry continuity." He refuted all suggestions that his de- cision had been unethical. Muscat said Mizzi, whose secret Pan- ama company was revealed in the 2016 Panama Papers scandal, was needed since the MTA was in a transitionary phase with the appointment of a new CEO and because the Air Malta restruc- turing was still being implemented. Muscat even claimed the complaint was "a generic allegation" and "partisan criticism unfounded in fact and at law." He insisted that as Prime Minister and minister responsible for MTA after the resignation of Mizzi, he acted within his legal powers when appointing the former tourism minister as a consult- ant, so that the authority could execute government policy on tourism promo- tion. But Hyzler said this was not Muscat's job, but that of the MTA's board at law to decide on such recruitment. Even the total payment itself breached a €232,937 limit set by the Tourism and Travel Services Act on contracts: Miz- zi's perks included a chauffeur-driven car, international health insurance for his family, paid communications, and an €11,400 cash bonus if Mizzi drove his own car. Muscat replied that Hyzler's sugges- tion that the consultancy salary was excessively higher than his ministerial €60,000 salary, was a matter of subjec- tive opinion. "One must consider the critical need of the services recruited. I cannot see the relevance of such a com- parison, when a minister does not give professional services to the State but serves in a political position according to the Constitution." Hyzler also said that MTA chief ex- ecutive Johann Buttigieg failed to re- fer Muscat's instruction to Gulia, and instead rendered himself complicit in Muscat's overweening power that ig- nored the MTA board's duties. Hyzler said that Gulia did not declare when he found out about the consul- tancy, or what he action he took when he found it; "none of them took any ac- tion to safeguard the law or the public purse, and for that, they neglected their responsibilities." Hyzler said it was bad practice for a minister to overrule or ignore the board of a government entity, creating a space for abuse. "ese entities are not there to serve as cover for potentially abusive behaviour by ministers. Ministers must distance themselves from decisions on workers' employment and contract awards due to the peril of favouritism or non-meritorious awards." Muscat ordered illegal €241,000 contract for Konrad Mizzi Joseph Muscat and Konrad Mizzi

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