Issue link: https://maltatoday.uberflip.com/i/1524716
8 maltatoday | WEDNESDAY • 31 JULY 2024 NEWS MATTHEW VELLA mvella@mediatoday.com.mt ANTI-CORRUPTION and hu- man rights groups said govern- ment has failed to address rule of law recommendations made by the European Commission from the preceding year. Repubblika, the Daphne Caru- ana Galizia Foundation, Aditus and SOS Malta said the current year's recommendations were nothing more than a reiteration of pending recommendations. They said the EC had employed diplomatic language to note "some progress" on pledges made by the government. "The devastating observation of the Commission that the Maltese State has not successfully con- victed anyone despite the ram- pant corruption within the gov- ernment is completely accurate and remains the most compelling evidence of the weakness of the rule of law," the NGOs said. The NGOs insisted that exag- gerated delays from the courts emanated from fundamental defects in the administration of justice and the lack of human resources. "These are the respon- sibility of the government," they said. "Apart from this, the level of digitisation of the judicial system needs substantial improvement. Court cases are still taking too long. We reiterate that the ex- aggerated delays stemming from major problems in the adminis- tration of justice and the lack of human resources, are the respon- sibility of the government and are in and of themselves an injustice and a violation of everyone's right to a fair hearing in a reasonable time, particularly for victims of crime." The NGOs said an inquiry in- to the Vitals hospitals privatisa- tion that led to charges against disgraced prime minister Joseph Muscat was a result of the efforts of civil society despite attempts by Prime Minister Robert Abela to discredit the inquiry and belit- tle the prosecution in this case. They also accused the govern- ment of ignoring the recommen- dations of the Caruana Galizia public inquiry regarding the pro- tection of journalists, as well as that of a media experts' commit- tee, failing to publish a promised White Paper about legal reforms in this sector. "Journalists work- ing in Malta still face the same risks which led to a journalist be- ing killed," the groups said. Not even the recommendations to strengthen anti-corruption measures made by the Daphne Caruana Galizia public inquiry have been implemented yet. "This is crucial, since a culture of impunity is one of the factors that enabled Daphne's murder," they said. Although Malta is supposed to have a National Strategy Against Fraud and Corruption, this has not been implemented yet. The Commission also reiterated its concern about the large num- ber of persons appointed directly as persons of trust in government, and the great risks of corruption in the systems of public procure- ment, and in the sale of passports. The Commission reiterated a long-standing recommenda- tion to set up a National Insti- tution for Human Rights. "The government is committed to publishing for consultation a revised version of a proposal re- garding this measure which, so far, it has not published. A gov- ernment that, year after year, ignores a recommendation like this is hostile to human rights," the NGOs said. Anti-corruption NGOs say Malta fails on Commission's rule of law report Anti-corruption activists Repubblika and the Daphne Caruana Galizia Foundation, Aditus and SOS Malta, say government has failed to register improvement on rule of law recommendations issued by European Commission The NGOs laid the blame of exaggerated delays at the feet of the government. Pictured are Prime Minister Robert Abela and justice minister Jonathan Attard THE Maltese-owned franchise of Italian fashion stores, Melite Retail, will delist its €9,250,000 bonds – issued back in 2018 – in the wake of an unfortunate saga that saw COVID shut down its stores and re- cently, its main tenant defaulting on rent- al payments. Alf Mizzi & Sons, holder of 40.3% in Melite Retail, will forward the compa- ny's finance vehicle Melite Finance plc a €9,250,000 loan to fully repurchase the outstanding bonds for eventual cancel- lation. In February 2024, Melite's Italian sub- sidiary, Melite Properties Srl, terminat- ed its rental agreements with third-par- ty tenant Giadea, for not settling rent payments for January 2024 on 10 stores across Italy it had leased. Melite Properties holds the lease and rental agreements for a portfolio of fashion stores for the Accessorize, Cal- vin Klein Underwear, and the 3INA Cosmetics brands in Bologna, Bolzano, Como, Firenze, Genova, Milan, Padova, Pavia, Torino, Treviso, and Verona. Melite Finance's buyback is still being offered at par despite the bonds having traded below par since 2020. Melite Retail will pledge all ordinary shares in Melite Finance in favour of Alf Mizzi & Sons, as security. Melite Retail's shareholders Michael Soler of Daystar Holdings (7.43%) and MMGH (9.7%) will offer guarantees, by way of 7.6% and 9.7% respectively, of any eventual shortfall in the loan repay- ment. Shareholders Andrew Ganado Limit- ed (21.65%) and related company GAN (9.11%) will also commit funds receiva- ble from existing loans to Melite Prop- erties, as a guarantee to Alf Mizzi for the loan, at a value of 5%. This means Alf Mizzi is relying on Melite's assets for the repayment of 77.7% of the loan. Melite Finance had said in February that it would safeguard the interests of bondholders, adding that the Alf Mizzi loan and buyback were the most viable means for securing bondholders' inter- ests through a return of the capital pre- viously invested in the bonds. Melite Retail caught a gasp of air in 2022 after registering a €883,000 gross profit following the lockdown on its Italian stores due to COVID. The profits reflected the increase in rental income upon the re-opening of outlets. Melite was caught in the eye of the storm in 2020 and 2021, when the COV- ID lockdown forced shut some 26 of its Italian stores, affecting the payment of its 4.85% coupon. Melite to delist bonds with Alf Mizzi €9.2 million loan