Issue link: https://maltatoday.uberflip.com/i/540322
maltatoday, SUNDAY, 12 JULY 2015 6 News MATTHEW VELLA AN appeals tribunal has over- turned a decision by the Informa- tion and Data Protection Com- missioner (IDPC), that upheld Malta Enterprise's decision not to disclose the contract of employ- ment for investment envoys Sai Mizzi Liang, wife of energy minis- ter Konrad Mizzi, and British na- tional Shiv Nair. Nair was appointed on a €6,000 fee to assist minister Mizzi on en- ergy matters; while Mizzi Liang was appointed as a trade envoy to Asia, and later consul-general in Shanghai, on an annual €160,000 salary. The decision by the appeals tri- bunal was made after Prime Min- ister Joseph Muscat published ex- tracts of Mizzi Liang's contract, following a rare appearance she made as part of a Maltese delega- tion to China. "It is an uncontested fact that Ms Sai Mizzi's appointment with Malta Enterprise is a matter of public interest, not only because her husband is a member of the executive, but because her sal- ary is paid out of public funds which should be under the great- est scrutiny possible, because this [Malta Enterprise] is a public en- tity," the tribunal, chaired by Dr Noel Camilleri, said. The tribunal said that since the appointments are of public inter- est, Malta Enterprise had to ac- cede to MaltaToday's requests while safeguarding any personal data included in the documents requested. The tribunal's decision was bol- stered by references to case law and parliamentary speeches on the legislation at the time, say- ing that the FOIA itself allowed a wide range of documents to be available to the public, and that refusal of disclosure had to be backed up by arguments proving that disclosure would harm the public interest. "It is a fact that since Ms Mizzi is the wife of a government minister, she is considered a public person so for the sake of transparency it is also important that the applica- tion of the FOIA and Data Protec- tion Act are done in a way that reflects the spirit of the legislator when these two laws, so important for transparency in government administration, were passed." But the tribunal said that the IDPC could not consider Mizzi's contract of employment as part of Malta Enterprise's confidential operations at attracting invest- ment. Originally, Malta Enterprise re- quested that it should be the IDPC that determines whether disclos- ing the information would breach the two envoys' privacy rights. In his decision, IDPC Saviour Cachia considered that while per- sonal data could be processed if "carried out in the public inter- est", he also invoked Article 21(5) of the Malta Enterprise Act, which binds its investment envoys to treat "documents and information relating to [Malta Enterprise] as secret and confidential." But the appeals tribunal over- turned this reasoning, saying that this clause dealt with secret infor- mation relative to the operations of Malta Enterprise, and when this concerns the country's economic development and investment. It agreed with MaltaToday's ap- peal when it pointed out that the IDPC did not make it clear as to why disclosure of the information would not serve the public inter- est, when it was the Prime Min- ister – on a political whim – who later decided to present the alleg- edly 'confidential' information in the House of Representatives. MIRIAM DALLI MALTA'S growth prospects re- main strong, with credit rating agency Standard and Poor's re- taining its 'BBB' rating for the country. Budgetary forecasts now set total debt to decline to 55% of GDP by 2018. "The positive outlook reflects a one-in-three likelihood of an up- grade within the next 24 months if medium term economic growth prospects are maintained," S&P said. Malta's real GDP grew by 3.5% in 2014, with S&P forecasting more growth that outpaces the euro- zone as a whole, notably because of investments in the energy sec- tor. More importantly, S&P said the ongoing financial crisis in Greece has no material bearing on Malta's credit profile. "We do not believe events in Greece will have a material bear- ing on Malta's credit profile. Like all eurozone members, Malta is exposed through common mon- etary, fiscal, and development in- stitutions such as the European Central Bank, the European Fi- nancial Stability Facility, and the European Investment Bank," the agency said. "Apart from contingent liabilities associated with those institutions, Malta's exposure to Greece is lim- ited. Malta's trade with Greece is small and direct financial links are few. We assess the external debt of Malta's domestic banks as suffi- ciently contained such that Malta would cope with a permanent real increase in external funding costs spilling over to eurozone markets from Greece." Malta's contingent fiscal liabili- ties stemming from its public enti- ties derive mostly from Enemalta's government guaranteed debt (9.7% of GDP as of end-March 2015). Enemalta will likely not gener- ate profits until 2017, but the drop in international oil prices is help- ing an expected return on invest- ments. "Nevertheless, other state- owned enterprises also represent fiscal risks, as exemplified by this year's government financial sup- port to Air Malta, estimated at 0.5% of GDP." Public sector debt totalled 16% of GDP at year-end 2014. S&P however reiterated the need for more reform in pensions and healthcare, and warned of contin- gent fiscal risks to public finances from the banking sector. "Malta's domestic banking sector operates alongside a large offshore sector which, we believe, the govern- ment would not support in case of financial distress. However, dislocations in their funding could affect the island's reputation as a financial centre." Malta's banks own assets that are seven times the size of the country's GDP – domestic banks' assets are twice the size of GDP: that includes Bank of Valletta with €7.7 billion and HSBC Malta with €5.15 billion, and also fast-grow- ing Mediterranean Bank with €2.2 billion. Finance minister Edward Sciclu- na said S&P's decision to upgrade outlook to 'positive' has re-af- firmed Malta's solid performance and prospects for the upcoming years. "Of particular satisfaction is their remark on the government's success in reforming key sectors, mainly energy, and concrete ef- forts to diversify the economy. We are also pleased to note the favourable comments in relation to Malta's low exposure to Greece, with the agency stating that events in Greece will not have material bearing on Malta's credit profile." Appeals Tribunal says Malta Enterprise must disclose Sai Mizzi contract to MaltaToday Freedom of Information Act (FOIA) requests upheld by appeals tribunal: Malta Enterprise must disclose contracts of employment of Sai Mizzi Liang and Shiv Nair to newspaper Exposure to Greece 'limited', says S&P Energy Minister Konrad Mizzi with his wife, Sai Mizzi Liang FACTFILE • SAI MIZZI LIANG Her appointment as a trade envoy in Shanghai was Labour's first blemish, sparking accusations of nepotism. Eventually it was also revealed that she had been made Malta's consul- general to Shanghai in 2014. Her contract was never published, and then excerpts were only made public in the summer of 2014, when Prime Minister Joseph Muscat published Mizzi Liang's contract in parliament after she accompanied the Maltese delegation in China – a rare public appearance that forced Muscat's hand into explaining how much the minister's wife was being paid for her Shanghai posting. Foreign minister George Vella has declared that it was not him who decided that she should be appointed consul, but that he had no objection to the appointment. Together with a salary of more than €73,000 a year, more than half of which is non-taxable, Sai Mizzi also receives a representation allowance of €3,261 a year; a child allowance of almost €3,000 a year; a fully paid residence; an official car with fully paid expenses and fuel; and the full reimbursement of the use of her mobile phone. She is also entitled for payment of private schooling for her children – up to €18,783 a year; a 90 per cent reimbursement of medical, dental, and ophthalmic care for all members of her family; a one-time settling-in and outfit allowance; and 15 free flight tickets between Malta and Beijing for all members of her family, 10 of the tickets being business class. The total amount per year works out at a little less than €160,000. Malta's ambassador to China in Beijing, Clifford Borg Marks, is paid a €34,000 salary and €40,000 for his posting overseas.