Gloves come off ahead of European Parliament’s rule of law in Malta debate ● EU Parliamentary resolution calls for investigation into FIAU PEP reports and Pilatus licensing process ● Socialists prepare back-up, watered down resolution

The gloves have come off ahead of Tuesday’s European Parliament debate on the rule of law in Malta, with the lion’s share of parliamentary groups signing on to a proposed resolution calling on the Police Commissioner to investigate the Panama Papers revelations and the politically-exposed people (PEP) in the leaked Financial Intelligence Analysis Unit’s reports.

It also calls on the Maltese supervisory and judiciary authorities to investigate the licensing process of Pilatus Bank. A vote on the resolution will be held the following day.

The Socialists and Democrats, the grouping of which Malta’s Labour Party forms part, has prepared a backup, significantly watered down resolution to be put to a vote should the joint resolution fail to be passed.

But European Parliament sources speaking to this newspaper yesterday said that it would be “near to impossible for joint resolution to not be passed through the EP given the breadth of support it has received”.

The proposed joint resolution is backed by the EPP [of which the Nationalist Party forms part], the ECR, GUE/NGL, ALDE and Verts/ALE parliamentary groupings.

Tuesday’s debate comes in the wake of the assassination of journalist Daphne Caruana Galizia. It will be the second time the rule of law in Malta is debated by the European Parliament, the first having been called last June in the wake of the Panama Papers allegations.

It will be the third time that a contentious Maltese issue will be specifically treated by the EP, the first having been the highly controversial Individual Investor Programme (sale of citizenship) which had seen the vast majority of MEPs lined up against Malta’s stance.

The joint resolution

The proposed European Parliament resolution demands an urgent investigation into Pilatus Bank and Nexia BT and slams the lack of a police investigation into Politically Exposed Persons in the Panama Papers and FIAU reports.

It calls on the European Commission to launch an official ‘Rule of Law Dialogue’ with the Maltese government; for an international, independent investigation into the assassination of Daphne Caruana Galizia and expresses concern at the deterioration of the situation in Malta over the last years. It specifically calls on the Police Commissioner to investigate PEPs mentioned in the Panama Papers and FIAU documents, as well as on the Maltese supervisory and judiciary authorities to investigate the licensing process of Pilatus Bank.

The EU parliamentarians, through the resolution, say they “regret that several serious allegations of corruption and breach of anti-money laundering and banking supervision obligations have not been investigated by the police in Malta, which represents a threat to the rule of law in this Member State”.

The resolution also acknowledges several magisterial inquiries under way regarding some of the allegations. MEPs through the resolution would “specifically regret the fact that there has been no police investigation to date in Malta into the revelations regarding the Panama Papers and Politically Exposed Persons in the leaked FIAU reports, and notes that some of those named in the FIAU reports remain part of the government, calling on the Maltese Police Commissioner to open such an investigation.”

With regard to Pilatus Bank, the EU Parliament through the resolution calls on the Maltese supervisory and judiciary authorities to investigate the bank’s licensing process, “in particular regarding fulfilment of the fit and proper requirements for the management body of financial institutions, as mentioned in the Capital Requirements Directive, and to investigate the compliance of Nexia BT with the AMLD [Anti-Money Laundering Directive].”

The resolution also calls on the Conference of Presidents to create a ‘European Daphne Caruana Galizia prize for investigative journalism’ to be awarded annually for outstanding investigative journalism in Europe.

The motion for a resolution reads that Parliament regrets that the developments in Malta in recent years have led to serious concerns about the rule of law, democracy and fundamental rights, “including freedom of the media and the independence of the police and the judiciary”.

The resolution calls on the Euro- pean Commission to establish a dialogue with the Maltese government regarding the functioning of the rule of law in Malta and to ensure respect for European values. It also calls on the Commission to keep Parliament fully informed of its assessment, while reiterating the need for a regular process of monitoring and dialogue involving all Member States in order to safeguard the EU’s fundamental values of democracy, fundamental rights and the rule of law.

EU Parliamentarians also take note, in the proposed resolution, of the comments made by Malta’s Chief Justice with regard to the rule of law “and support his assertion that without proper law enforcement the rule of law in Malta cannot be safeguarded”.

The MEPs express concern at the report drawn up by the PANA Committee following its visit to Malta, stating that the public institutions in charge of compliance, fraud and financial crime are highly politicised.

Another issue highlighted in the proposed EU Parliament resolution is Malta’s citizenship by investment schemes. They reiterated: “The frequently expressed concern by members of this House about Citizenship by Investment Schemes in general, including Malta and other EU Member States, and calls on Malta to make it clear who has purchased a Maltese passport and all the rights that come with it, and what safeguards are in place to ensure that all these new citizens have actually spent a year in Malta prior to the purchase.”

They also call on the Commission to monitor such citizenship programmes in Member States, “as the latter must have due regard for EU law when exercising their com- petence in the area of nationality”.

If passed, the resolution will be forwarded to the Council, the Commission, the governments and parliaments of the Member States, the Council of Europe and the President of the Republic of Malta.

The Socialist backup resolution

But should this joint resolution not be voted through on Wednesday, the Socialists and Democrats, of which the Labour Party forms part, has prepared a significantly watered down version.

The resolution, signed by Labour MEPs Miriam Dalli, Alfred Sant and Marlene Mizzi, among others, condemns the assassination of Daphne Caruana Galizia and calls on the Maltese government “to deploy all resources to bring her murderers to justice”.

It “acknowledges efforts undertaken by the Maltese Government to carry out independent investigations into the murder, which include the collaboration of Europol and other third-country forces, including the FBI and Dutch forensic experts”.

The Socialist resolution “registers the genuine concern that this case has aroused among its members, particularly given that it constitutes a direct threat to freedom of expression” and “notes the frequently expressed concerns by members of this House about citizenship by investment schemes in general in some EU Member States.”

Expressing concern “about the involvement of politicians in the Panama Papers scandal”, the resolution “invites the Maltese Government to be transparent with all relevant EU institutions on all matters arising from the aforementioned concerns, in an impartial, evidence-based and cooperative way”. It also “reiterates the need for a regular process of dialogue involving all Member States in order to safeguard the EU’s fundamental values of democracy, fundamental rights and the rule of law”.

The resolution also strangely notes: “The most recent polls among Maltese citizens show that the major institutions are trusted by the majority, with trust ratings of 72 % for the government, 69 % for the police force, 51 % for the Law Courts and 51 % for the media”.

Orchestrated effort to damage Malta’s reputation Sant –

Head of the Labour delegation to the EP, former Prime Minister and current MEP Alfred Sant, has accused the EPP and the PN of “orchestrating a joint effort to attack Malta’s reputation next Tuesday at the European Parliament”. Sant said in a statement yesterday, “A strong faction within the PN that is afraid of losing power, irrespective of whoever may be in government, is trying to avoid this at all costs, by inflicting enormous damages on the whole country. MEPs from other groups who previously criticised Malta’s tax system, mainly from the Greens and the extreme left, have joined this effort which is endangering thousands of jobs in the financial services sector which constitute 20% of Malta’s economy.

“The EPP is being criticised on its handling and defence of the Hungarian government currently being accused of breaking the rule of law in the country. The European Conservatives are also defending accusations levelled by the European Commission at the Polish Government on the rule of law.”

Next Tuesday, Sant said, “MEPs from these groups will attack the Maltese Government on Malta’s taxation system, the Malta Citizen by Investment Programme and the rule of law.”

Dr Sant noted that the EPP and the Conservatives have for the last months defended Poland and Hungary who have consistently being accused of breaking the rule of law in their countries.

“Now they have grabbed the opportunity to level the same accusations at the Maltese government and pay back the S&D in which Labour MEPs play an active role,” Sant said, observing that there are people in Malta who are labelling the country as a mafia state to denigrate Malta.

“These Maltese should be ashamed of themselves for circulating texts aimed at poisoning political groups at the European Parliament. The only exceptions are the Socialists and Democrats (S&D). I referred to the situation in Malta in a meeting of the S&D Bureau and the S&D group of MEPs.

“The damage could be incurred on Maltese and Gozitan citizens and workers who are benefitting from the wealth created in Malta during the tenure of the last two Labour governments. These Maltese are spreading damaging arguments which are harming Malta and its citizens. This damage could be irreparable.”

The only people damaging Malta’s reputation are the criminals in Castille PN MEPs –

Taking particular exception to Sant’s statement, Nationalist MEPs David Casa, Roberta Metsola and Francis Zammit Dimech yesterday said, “If Alfred Sant had any backbone he would ensure his S&D colleagues support the resolution on Wednesday and stand with the Maltese people and not the criminals in government.

“Alfred Sant should know very well that all political groups except his own are of the same view concerning the rule of law in Malta. He is therefore either delusional or is intentionally attempting to contort the truth.

“Allowing criminals to take hold of the country and cause havoc is what damages Malta’s reputation.

“Appointing and refusing to sack a puppet, incompetent Police Commissioner to save the skin of those in power is what damages Malta’s reputation

“Allowing a bank strongly suspected of laundering money for Maltese PEPs and Azeri dictators to operate in Malta is what damages Malta’s reputation

“Systemically, intentionally, weakening Malta’s institutions is

“The EU parliamentarians, through the resolution, say they “regret that several serious allegations of corruption and breach of anti-money laundering and banking supervision obligations have not been investigated by the police in Malta, which represents a threat to the rule of law in this ” Member State”

what damages Malta’s reputation.

“The only people damaging Malta’s reputation are the criminals in Castille.”

PN against Malta but defends Hungary Miriam Dalli –

Echoing Sant’s line of thought, Labour MEP Miriam Dalli yesterday remarked, “The Nationalist Party in the European Parliament is against sending a delegation to investigate the rule of law in Hungary. “The Nationalist Party in the European Parliament has voted against sending a mission to investigate the rule of law and other failings in Hungary, which have been reported several times. The vote was taken this week, at the same time that the PN MEPs are working tirelessly against Malta.

“On Monday 6 November, the PN representative of the EP’s civil liberties committee, Roberta Metsola, voted in favour of a resolution not to send a delegation to Hungary to investigate the situation.

“On the other hand, MEP Miriam Dalli supported sending the delegation to Hungary. Likewise, Miriam Dalli is in favour of a delegation coming to Malta so that the Members of the European Parliament can see that the rule of law in Malta is strong.

“Roberta Metsola’s vote has obliterated any doubts as to whether the campaign of Adrian Delia’s PN was working against Malta or not.

“The vote to send a delegation to Hungary was taken after the European Parliament agreed to a resolution that accuses Hungary of going against the rule of law, the rights of civil society rights, civil liberties including LGBTIQ, irregular migrants’ rights, pluralism in universities and education, among others.

“While the PN is supporting Hungary against sending a delegation of the European Parliament to investigate grievous accusations, it is supporting a resolution against Malta. This resolution is replete with points that have nothing to do with the debate on the rule of law, and instead includes issues which certain political groups and MEPs always used to attack the economic services Malta has to offer. “The Nationalist Party is simply working against Malta for its partisan matters. “The Nationalist Party and its representative in the European Parliament are defending other countries, but not Malta.

We demand respect for the rule of law, accountability and change Metsola –

In reaction, Nationalist MEP Roberta Metsola’s office said in a statement, “After failing so spectacularly with wheeling out Alfred Sant to defend the indefensible this morning, Labour is now trying to repeat is mistake with Miriam Dalli. Again they will fail.

“MEP Dalli is either deliberately taking everyone for fools or is in such desperation to deflect attention that she has resorted to halftruths and obfuscation.

“Roberta Metsola and the entire PN delegation stand for the respect for the rule of law everywhere and will always say so. As regards, MEP Dalli’s pathetic attempt to compare Dr Metsola’s position on Hungary and Malta, here is a speech Dr Metsola gave to Hungarian Prime Minister Orban. It speaks for itself.

“No panicked Labour attempt to deflect attention from the crisis engulfing Malta and its Prime Minister will work. The eyes of Europe are on us, we demand respect for the rule of law. We demand accountability. We demand change.”

She added in a Facebook post, “This is not business as usual. Having an electoral majority does not mean you can ride roughshod over the rule of law. The EU will not turn away from what is happening. And we will not be intimidated, not by Muscat, not by Sant, not by anyone. We will do our duty.

“Change. Accountability. Justice.”