Issue link: https://maltatoday.uberflip.com/i/1508764
A few days ago, in an inter- view on Net TV, Paul Bonello, a financial services practitioner, raised the possibility that the benefits fraud scandal is a case of organised crime. This, in my opinion, is a differ- ent aspect of the scandal. The fraudulent scheme in- volved falsification of documents, theft of public moneys; corrupt practices when it was used for vote catching; bribes or protec- tion money and depended on a number of persons in order to succeed. This does indeed raise the possi- bility that the fraudulent scheme is a case of organised crime. According to the UN Con- vention Against Transnational Organised Crime, an organised criminal group is a structured group of three or more persons existing for a period of time and acting co-operatively with the aim of committing one or more serious crimes or offences. The EU, however, has another definition: 'planned and co-or- dinated criminal behaviour and conduct by people working to- gether for a common illicit profit that are often in great public de- mand, including the exercise of illegal governance'. It almost seems that this word- ing was written with the benefit fraud scandal in mind! Moreover, according to Article 83A (1) of Malta's Criminal Code (ironically enacted recently by the Labour administration): (a) Any person who - pro- motes, constitutes, organises or finances an organization with a view to commit criminal offenc- es liable to the punishment of imprisonment for a term of four years or more; (b) knowing or having rea- sonable cause to suspect the aim or general activity of the organi- zation set up for the purpose men- tioned in paragraph (a), actively takes part in the organisation's criminal activities, including but not limited to the provision of in- formation or material means or the recruitment of new members, shall be guilty of an offence and shall liable, on conviction, to the punishment of imprisonment for a term from four to nine years It goes on to say: (2) Any person who belongs to an organisation referred to in sub-article (1) shall for that mere fact be liable to the punishment of imprisonment for a term from two to seven years. (3) Where the number of persons in the organisation is ten or more the punishment in the preceding sub-articles shall be increased from one to two degrees. From the above quote from the Criminal Code and considering the way the fraudulent benefits were obtained, it is clear that the possibility of the case being one of organised crime cannot be dis- counted. The Minister for the Fami- ly, Children's Rights and Social Solidarity, my namesake, was reported in it-Torċa last Sunday to have declared in an interview on RTK radio that the fraudulent scheme was not an exercise in vote buying. I do not know how he is so sure, although when one considers the electoral districts where the beneficiaries of this fraudulent scheme live, there is no doubt that the fraud was done behind this minister's back - it certainly did not to give him any electoral advantage. This was because the benefi- ciaries are concentrated in the south of Malta and there is prac- tically no one from the electoral districts that Michael Falzon con- tests. This also implies a structured organisation, nay a conspiracy, made of people familiar with a particular area in the south of Malta, including the electoral dis- trict that elected former Labour MP Silvio Grixti. Inflation I have already written on the fact that the COLA increase of around €13 weekly will continue to fuel inflation, and this inflation is home-made and not the result of increases in prices of imported goods. This is a well-known fact. So, I cannot understand how the editorial of last Sunday's it- Torċa was an attack against lo- cal businessmen for increases in prices. The editorial followed a three page story starting from the front that reported how 85% of consumers blamed retailers for the recent increases in pric- es. This figure was the result of a survey carried out by well- known pollster, Vincent Mar- mara. I am not saying that Marmara, who is a professional, was incor- rect. But Marmara reported the prejudice of those polled and not the actual reasons for price in- creases. Blaming retailers for price in- creases rather than what is hap- pening in the rest of the world is an old leftist ploy that confuses the impression of many tradi- tional Labour Party supporters who do not even reckon that goods are imported at fluctuating rates before they are sold in our shops. To them it is the retailers that ask more for their imported products and therefore the retail- ers are at fault. I am not saying that there are no rogues among retailers, but it is obvious that the recent spate of price increases in consumer goods is the result of increases in cost of imported goods. These cost increases are the result of several factors beyond the local market and do not therefore re- sult from capricious local retail- ers. Playing on the ignorance of some to depict all retailers as thieves is an old left-wing trick and is certainly unfair. The edito- rial in it-Torċa even said this sit- uation must be addressed. How? Inflation is not controlled by per- secuting retailers! I would have thought that expe- rience has shown this is not on. But old habits die hard. Meanwhile, speaking at a pre- budget consultation meeting with the social partners, Finance min- ister Clyde Caruana on Wednes- day warned that while subsidies on energy, fuel and grains are set to continue into next year, the mentality that the government can continue to spend indefinite- ly needs to change. Caruana admitted that inflation has led some to increase prices with little justification: 'The el- ement of profiteering exists in Malta too, where people increase prices with the excuse of infla- tion. This exists all over Europe and Malta is no exception.' Caruana said the country needs to be weaned off the psychologi- cal effect brought about through the financial aid provided by government, first during the pandemic and later to ease in- flation. In total, Caruana said, the gov- ernment will be spending €350m in subsidies next year, some 1.7% of Malta's total GDP. This cannot go on indefinitely. 'Now we are back to reality, where we can spend what we earn. You can spend a little more than you earn for a little while, but you cannot do that forever,' he said. Minister Clyde Caruana is down to earth while it-Torċa promises pie in the sky! 7 maltatoday | SUNDAY • 1 OCTOBER 2023 OPINION Is it a case of organised crime? Michael Falzon micfal45@gmail.com Former Labour MP Silvio Grixti is at the centre of the benefits fraud scandal