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18 maltatoday EXECUTIVE EDITOR Matthew Vella MANAGING EDITOR Saviour Balzan Letters to the Editor, MaltaToday, Vjal ir-Rihan, San Gwann SGN 9016 E-mail: dailynews@mediatoday.com.mt Letters must be concise, no pen names accepted, include full name and address maltatoday | SUNDAY • 17 JUNE 2018 15 June, 2008 Gonzi won't appoint JPO to Cabinet post Prime Minister Lawrence Gonzi yester- day said he would not be appointing Na- tionalist MP Jeffrey Pullicino Orlando to a Cabinet post, after the police arraigned three people over the controversial Mis- tra disco project that was earmarked for development on land owned by Pullicino Orlando. "I have made my political judgement on this case when I appointed the Cabinet. I see nothing new that makes me change my judgment. Correctness in public state- ments has to be maintained, given that criminal proceedings will start in the courts," Gonzi said yesterday. The case concerns the investigation over the way a permit was issued for the disco on the land Pullicino Orlando had leased out to Tattingers disco owner, Dominic Micallef, who used a third party to apply for the permit for the open-air disco. The controversial permit was issued for the disco on the land against Struc- ture Plan policies. When the case was revealed by former Labour leader, Alfred Sant, in the last week of the elections, Sant claimed corruption had taken place in the award of the permit. Pullicino Orlando subsequently said he knew nothing of the project or about who had applied for the permit over his land, despite having signed a consent form for a third party to apply for the permit. Three months after the Prime Minister asked the Commissioner of Police to car- ry out investigations into Sant's claims of corruption, the police on Friday said they had arraigned Philip Azzopardi, for- mer chairman of a DCC board, and An- thony Mifsud, a former board member, for "private interest in adjudication". George Micallef, a high-level consult- ant with the Malta Tourism Authority who claimed he had been "collared" by Pullicino Orlando to discuss matters connected with the Mistra permit, was also charged over a false declaration and planning development crimes. Micallef had been previously commissioned by Dominic Micallef's company DJRL to issue an independent report arguing in favour of the project. As an MTA con- sultant later, he prepared a report justi- fying the project. Commissioner John Rizzo, however, said there was no criminal case in Pul- licino Orlando's regard. Yesterday morning, Pullicino Orlando issued a statement explaining his version of events, this time claiming he was "ful- ly aware that the applicant had applied for a permit for an underground lavatory and an open-air dance floor with a plat- form less than two metres high." MaltaToday 10 years ago Quote of the Week Wanted: independent regulators for our financial sector ON Thursday, Justice EU Commissioner Vera Jouro- va raised some important questions about Malta's regulation of its financial services sector. The commissioner was here on a fact-finding mission to investigate Malta's Individual Investor Programme (IIP), and the measures in place to com- bat money laundering, as well as to investigate the impartiality of the judiciary. On the latter front, there seems to be little cause for concern. After meetings with Justice minister Owen Bonnici, the Chamber of Advocates, the As- sociation of Judges and Magistrates and Chief Justice Joseph Azzopardi, Jourova noted that: "I didn't get any worrying indications or information that the judiciary is under pressure. I didn't get such informa- tion." Nonetheless, her conclusions about Malta's finan- cial regulations were less optimistic. Jourova said that while Malta was "undoubtedly an economic success story, there were worrying events that had drawn the attention of Europe to the island", adding that "[her] role as justice commissioner is to sometimes ask dif- ficult but honest questions." Among these questions was whether there was willingness on the part of local authorities to trans- pose the necessary EU money-laundering directives, and to ensure their enforcement. On this score, Jourova said that there were two sides to the issue. "One is what there is on paper, and I am convinced that Malta will be doing everything to have the trans- position done [...] The second is how rules are ap- plied in practice and here I want to see more activity and a better functioning system because the Pilatus Bank case revealed that there are some shortcomings and the question remains whether it is just this one case or whether it revealed a systemic problem." More ominously, the Commissioner also hinted at the possibility of punitive measures. "Any time we [detect a] systemic problem with the implementa- tion of EU law, the Commission has the possibility to launch infringement procedures," she said, adding that she had instructed the EBA to delve deeper into the case. Jourova also commented that: "We don't want the EU to become a safe haven for people who want to launder money." If that were not enough, Commision vice-presi- dent Frans Timmernas said that "the Commission fully agrees that the European Banking Authority (EBA) should assess whether the Maltese banking supervisors are fully equipped and free from conflicts of interest to perform their supervisory duties", and that "the EBA should also assess whether the MFSA has fulfilled its obligations given the apparent lack of action against private banking institutions that con- tinue to hold a licence to provide services in the EU." These concerns, voiced at highest levels of the EU, underscore the fact that Malta's expanding economic growth requires massive regulation: the sort of regu- lation that can only come from strong and independ- ent regulators and inspectors. Sadly, it is equally obvious that the EU does not view Malta's inbuilt regulatory authorities to be in control of the situation: or even, for that matter, above suspicion themselves. By openly question- ing whether the Malta Financial Services Authority (MFSA) – Malta's financial services and banking regulator – was 'free from conflicts of interest', he was effectively pointing towards possible political interference. Taken together, these admonitions constitute a warning shot fired across Malta's bows. It is now more than evident that the fall-out from the Pilatus Bank affair – which resulted in its chairman being arrested on money-laundering charges in the USA – has cast an indelible shadow over Malta's bank- ing and financial services sector. Admittedly, Malta cannot be viewed in isolation on this matter: Jourova herself acknowledged that Malta was not the only country facing such difficulties, and vowed to visit as many countries as possible in order to apply pressure in this regard, before her mandate is up. But even if money-laundering is a Europe-wide – indeed, global – problem, Malta's laxity in coming to grips with the issue, still stands out. Above all, recent experience strongly suggests that 'independence' and 'autonomy' – so necessary to the proper function- ing of regulatory authorities in all spheres – are not conspicuous when it comes to investigations involv- ing people in high office. Even if the inquiries are still ongoing, it is clear that the involvement of Cabinet ministers and high-ranking government officials (Konrad Mizzi and Keith Schembri allegedly held accounts with Pilatus) had an impact on the relevant institutions' ability to function. It is therefore unsurprising, that the EU clearly has its eyes on Malta over this very lack of inspection and regulation, and fears that so-called "state capture" is compromising these regulators. The Maltese government has to take heed of these warnings. It is within its rights to defend its econom- ic record and its successes on civil liberties, but the independence of institutions, and reaching optimal institutional capacity, is key to protecting Malta's own economic growth. The so-called 'problems of success' – the added risks that come with unfettered economic growth – can only be mitigated by strong regulators and inspectors, as we have seen in cases of mafia infiltration. From this perspective, it is pointless to complain of 'bullying' by the European Union. Quite frankly, until we get the assurance of strong independent-minded regulators, we should not expect the EU to let Malta off the hook. Editorial "Salvini is violating international law. He has once again shown that we are under an extreme far-right government." Leoluca Orlando mayor of Palermo These concerns, voiced at highest levels of the EU, underscore the fact that Malta's expanding economic growth requires massive regulation