Issue link: https://maltatoday.uberflip.com/i/490723
maltatoday, SUNDAY, 5 APRIL 2015 8 MIRIAM DALLI FOREIGN Affairs Minister George Vella hopes the warring factions in strife-torn Libya will this week reach an agreement on a presidential council as proposed by the United Nations. The rival factions are expected to announce their decision on Wednesday, although it is also likely that a request could be made to al- low more time for discussions on the proposal. UN special envoy Bernardino Leon has proposed a council headed by a president and including two depu- ties and independent personalities not belonging to any party or affili- ated with any group. He also proposed endorsing the eastern House of Representatives as legitimate, a proposal which may not be so easily accepted by the Tripoli- based remnants of the General Na- tional Congress (GNC). Libyan News Agency (LANA) reported that US Ambassador De- borah Jones and UK Ambassador Micheal Aron, who were in Morocco attending the Libyan dialogue, ex- erted pressure on the GNC delega- tion to persuade them to recognise the legitimacy of the Tobruk-based parliament, in order for the dialogue to move forward. Earlier this week, a decision by the Congress to sack its prime minister, Omar al Hassi, was considered to be a step in the right direction for the peace talks. Al Hassi was dismissed, amid accusations of failing to tackle corruption and of misleading parlia- ment about government finances. "There are a lot of loose ends but the focus remains the setting up of a government of national unity," George Vella told MaltaToday, admitting that this was mostly de- pendent on the representatives of the Tripoli and the Tobruk political- military coalitions. Although a national unity govern- ment may not necessarily involve all representatives of the Libyan factions, a single legislative body that enjoys the support of the two main rival factions would allow the country to seek assistance from the European Union and the United Na- tions. "Once a legitimate body is in place, accepted by both sides, it will have the moral power to ask for help. The EU and the UN will then be au- thorised to cooperate with the legal body," Vella said. While the European Union stands ready to help Libya in terms of po- licing and securitisation operations, providing humanitarian assistance, Leon urged Libyan officials to transit from aspirations for a peaceful Libya to "real achievement". The meeting, which brought to- gether representatives of Libyan municipalities and local councils, in- cluded Federica Mogherini, the EU's High Representative for Foreign Af- fairs and Security Policy. A determining factor in the peace talks was the position taken by the western city of Misrata and its may- or's participation in the talks in Brus- sels. His presence was welcomed as an indication that Misrata – a city that holds a considerable degree of autonomy in its economic, political and security interests – would sup- port the formation of a government of national unity. The peace talks led by the United Nations Support Mission in Libya started registering progress when it became more evident that instability in Libya allowed Islamist extremism to rear its head across the North Af- rican country: in January, a suicide bombing and gun attack at the Cor- inthia Hotel in Tripoli killed 10 peo- ple. The attack was claimed by ISIS. In February, 21 Egyptian Copts in Libya were beheaded. Libya's foreign minister, Moham- med al Dairi, warned that over 5,000 foreign fighters have flocked to Lib- ya to join the ranks of radical Islam- ist groups. In comments to The Libya Herald, al Dairi said that many "terrorist leaders" were joining terror groups such as ISIS and Ansar al-Sharia. Islamic State leader Abu Bakr al- Baghdadi said that he had accepted oaths of allegiance from supporters in Libya: Derna was the first Libyan city to swear its allegiance to the IS leader. Unconfirmed reports have now surfaced claiming that Ansar al- Sharia's leader, Abu Abdullah al- Libi pledged loyalty to al-Baghdadi as well. THERE is no doubt that since July 2014, when Tripoli International Airport was attacked and destroyed, the flow of Libyan nationals and the numbers relocating to Malta in- creased substantially. These expatriates are not a bur- den, in the strict financial sense, on our national economy. On the con- trary, they pay for all the services they consume without any recourse for free, subsidised or other govern- ment services generally available to Maltese nationals. Consequently, their presence in Malta impacts positively on the sectors that are normally associated with reloca- tion, such as property sales and let- ting, medical and health services, education, retail and banking and professional services. It is roughly estimated that each Libyan household unit, comprising usually between five to seven mem- bers, spends as a minimum €40,000 per annum in property rental, pri- vate education, health, day to day disbursements and other retail ex- penditure. This equates circa to 80 tourists if one considers this annual expenditure against the yardstick of tourists' expenditure in Malta, as per MTA. It can safely be stated however that the positive economic and fi- nancial impact is both visible and tangible and that it is contributing considerably to the value added of the local economy in sectors where their multiplier effect is to say the least, generous. Libyan nationals and businesses relocate to Malta because of our advantages vis-à-vis other neigh- bouring and European countries. For starters and as common de- nominators, we speak a similar Semitic language and by and large pronounce analogous attitudes and traits. Proximity and communica- bility are definitely critical factors, as are also the relative ease of con- ducting business and the quality of education and health. Having said this, it seems that we are not optimizing our potential as a prospective regional financial and corporate hub given the mo- nopolistic and at times restrictive practices employed by the banking sector as well as the lack of medium and long-term strategy in adminis- trative matters and the consequen- tial decision making on a day to day basis. I consider the impetus at this juncture should be on how to con- solidate and plan forward within a national economic and financial framework to avert stale, inefficient and backward looking scenarios which could erode this current ad- vantageous positioning. Banking is an example par excellence with one bank enjoying quasi-monopolistic power. To aspire for regional hub status, Malta needs to do away with restrictive practices, provide an au- thentic competitive environment and improve the quality and effi- ciency of governmental and quasi- governmental structures, especially those which are in direct contact with expat civilians and businesses. Historically, it has always been proven that where restrictive prac- tices are present, countries become stale and slide backwards. The Spanish and Ottoman examples are prime examples, the former restricting the power of the Cortes whilst the latter refuting the effects of the Industrial Revolution, includ- ing printing, with disastrous results in education especially. On the contrary, England, with the advent of King William and his acceptance of the declaration of Rights and supremacy of Parlia- ment in taxation and legislation, paved the way for inclusive practic- es which eventually brought about the Industrial Revolution, great economic and financial wealth and tangible social and civil strides for- ward. I would say that from today's van- tage point, it was auspicious that we inherited British systems and practices. This model has served us well in corporate, tax and financial legislation, regulation, education and practice. This is the attraction which, if harnessed and cultivated properly, could appeal not only to Libyan nationals but also to other MENA and Gulf nationals. It is then, and only then, that we will be able to claim to be a real corporate and business centre. 'Libyan exodus has served Malta well' News Libya's financial exodus planting Malta roots MATTHEW VELLA KHALID Albibas, the former chief commercial officer of the Libyan telephone operator Al Madar, has founded in Malta a firm named Masarat Company, to specialize in computer services and telecommu- nications. Al Madar is a subsidiary of the LPTIC (Libyan Post, Telecommu- nication and Information Technol- ogy Holding Company) run by Faisel Gergab, who recently moved opera- tions over to Malta. The LPTIC is the holding company that controls all of Libya's state- dominated ITC companies: Libyana, LTT, Hatif Libya, Al Madar, Al Jeel, Al Jadeed, LITC and Bareed Libya. Maghreb Confidential reports that Al Madar announced recently it was re-establishing its mobile network in eastern Libya, a sign of rapproche- ment to the Tobruk government. LPTIC boss Gergab set up a new subsidiary – LPTIC Services – in Malta earlier in February. LPTIC controls Libya's telecoms operators, at least on paper, and monitors all contracts to install optic fibre and wireless networks. The company set up its offices at Oilinvest House on Triq il-Falkun, in San Gwann, where the Tamoil Af- rica Holdings and Chempetrol oper- ations are already housed. They are both subsidiaries of the Libyan In- vestment Authority (LIA) on whose board Gergab sits. Gergab also set up the Libyan In- vestment Authority's sovereign fund LIA Advisory in Malta, back in De- cember last year. The other directors are Osama Siala, the new chairman of LIA appointed by the internation- ally-recognised government in To- bruk, Hassan Ahmed Bouhadi, and managing director Ahmed Ali At- tiga, a former World Bank official. Joe Sammut, an accountant and auditor who serves the Libyan business community, says Libyan families in Malta spend €40,000 per annum Joe Sammut Sliema is one the main hotspots for Libyan migrants setting up base in Malta Libyan upheaval: Tripoli prime minister Omar al Hassi has been removed All eyes on Tobruk, Tripoli representatives hoping for agreement on UN proposal 'There are a lot of loose ends but the focus remains the setting up of a government of national unity' George Vella