Issue link: https://maltatoday.uberflip.com/i/791658
maltatoday, SUNDAY, 26 FEBRUARY 2017 12 PRIME Minister Joseph Muscat's deci- sion to retain Konrad Mizzi in his Cabinet and Keith Schembri as his chief of staff, despite the political backlash of the Pana- ma Papers baffles political observers. As socialist MEP Anna Gomes suc- cinctly put it, given the chance she would have asked Mizzi: "why don't you resign in order to stop embarrassing your gov- ernment?" But in the absence of Mizzi's resignation, the other pertinent question is: why has Muscat kept Mizzi by his side? These five situations map out the hypo- thetical mind-map of the man most im- pacted by Panama Papers in Malta. 1. He believes that "demoting" Mizzi was the right thing to do MUSCAT may genuinely believe that in this case his actions were proportional to the impropriety committed by his then energy minister. For Muscat did demote Mizzi to a minister 'without portfolio' and he also forced him to give up his post as Labour deputy leader. As for Schembri, Muscat has consistently argued that he is not an elected public of- ficial and therefore he felt no ethical impera- tive to remove him. But such a course of ac- tion contrasts with Muscat's past reputation for decisive and ruthless actions. Before the 2013 general election, he had no qualms in abolishing the post of secretary- general to get rid of Jason Micallef. Neither did he show any qualms in ridding himself of deputy leader Anglu Farrugia, whom he asked to resign on the eve of the election after the latter alleged a magistrate was po- litically biased. On that occasion Muscat claimed that Farrugia's resignation reflected the difference in standards between the two parties, "with those within the PL bearing their responsibilities and the PN's Austin Gatt evading a no-confidence vote till the end". Moreover after the election Muscat reluc- tantly but decisively also sacked Emmanuel Mallia from home affairs minister (despite the latter's resistance). One may even argue that owning a company in Panama is a far more serious matter than Mallia's political responsibility for the actions of his driver. With this in mind, Muscat's decision to reinstate Mallia as a minister came as no surprise, seeing he decided to retain Mizzi. Muscat was also unequivocal in demanding parliamentary secretary Michael Falzon to step down after the publication of an Audi- tor General report on the Gaffarena expro- priation scandal. And Mizzi's demotion was half-hearted to the extent that Muscat was quick to use the EU presidency as a way to legitimise Mizzi's position as de facto energy minster, by hav- ing him preside the EU's energy council. This suggests that Muscat's decision may have been motivated by other reasons. 2. Muscat had to stand by his men MUSCAT may have calculated that Pan- amagate had already done enough damage to his party, and sacking Konrad Mizzi and Keith Schembri would have simply made things worse by turning what he may have perceived as a venial omission, to a resigna- tion matter. He may have also feared passing on the message that his government was constantly losing pieces in the face of attacks by the op- position and in the wake of Mallia and Fal- zon's sacking. Muscat may also have been comforted by public opinion polls conduct- ed by MaltaToday, Xarabank and the Malta Independent which showed him retaining a considerable trust lead over opposition leader Simon Busuttil albeit the Panama revelations. Moreover, personal considerations may have dictated Muscat's course of action. Muscat may well have concluded that he can still win the election despite Panama. Schembri is a close friend of Muscat since his school days while Mizzi gained a repu- tation of being indispensible to the govern- ment, a troubleshooter who comes to aid wherever he is needed. Muscat may also have been put in an un- comfortable position – for asking Mizzi to resign without making the same request to Schembri may well have created more bad blood. 3. Mizzi is too much of an asset for the government IN Labour circles Konrad Mizzi is revered as some sort of guru and indispensable fixer, a workaholic known for his intense work ethic and long hours and someone who can think outside the box. Like him or hate him, Mizzi has delivered in commencing the epochal shift from reli- ance on heavy fuel oil to more environmen- tally friendly natural gas. Still, delays over the opening of the new power station, suc- cessive power cuts which exposed depend- ence on cheaper energy from the intercon- nector, the retention of his wife as a trade envoy in Shanghai despite a promise by Mizzi himself that she would not continue to serve in that post, and the secrecy around complicated energy deals with private inter- ests, including Azeri kleptocrats and Chi- nese bureaucrats, have robbed Mizzi of his sheen as a technocrat who has altruistically lent himself to public service. Even MaltaToday's surveys showed Mizzi falling from second-best rated minister to one notch above transport minister Joe Miz- zi at the very bottom of the rating list. Without any doubt Konrad Mizzi is pivotal to government's energy policies. His influ- ence goes beyond the energy sector, given that he is responsible for Projects Malta which presides over land deals like the one involving the ITS and other privatisations and PPPs. Muscat may well have calculated that the cost of losing Mizzi at this stage was great- er than the inevitable political backlash. Schembri is also regarded as an important cog in the party's electoral strategy and pro business appeal. In some way, Mizzi's in- dispensability is reminiscent of the awe in which Austin Gatt (who also had a reputa- tion of a doer) was held by the Nationalist Party, despite facing allegations of impropri- ety. 4. Joseph Muscat had given his blessing to Mizzi and Schembri's arrangements ONE of the greatest risks of Muscat's deci- sion not to nip the problem in the bud by asking Mizzi and Schembri to resign is that Keeping Konrad against all odds? Analysis Panama Papers JAMES DEBONO DEBONO How can a Prime Minister afford to retain a minister whose secret company in a tax haven looks like 'a textbook case of money laundering' according to PANA committee MEPs from across the political spectrum? JAMES DEBONO asks a year after the Panama scandal rocked Malta Muscat is known to change his views after weighing public opinion. Inevitably his unwillingness to sack his closest associates in government has given the Opposition fodder for speculation The stain that will never go away: Konrad Mizzi's choice to open an offshore company will weigh heavily on the Labour government for months, if not years to come