interview

On Dom, De Marco and Daewoo

Former Labour candidate Reno Borg believes that as chairman of Bank of Valletta, he was treated very badly by the Nationalist administration. But, he tells RAY ABDILLA, political vindictiveness is not something he supports and a quiet life is what he desires

Learning from mistakes plays a pivotal part in moving forward, as has been shown so often.

Former Bank of Valletta chairman and Labour party candidate Reno Borg will not be drawn on whether there was any wrongdoing during the infamous Daewoo case, but admits it was a case of bad lending which banks shouldn’t repeat and concedes that the loan was not administered professionally.

Dr Borg, who told me he will not be contesting the general election next time round, also says he is sceptical about the reasons former premier Dom Mintoff gave for voting against the Labour government, thereby sealing its demise.

"Someone has to explain the Mintoff - De Marco friendship some day," are his enigmatic words.

Dr Borg stresses that although he is no longer active on the political scene, and is only supporting the Labour party from the sidelines, politics played a major part in his life for many years.

"When I was a university student way back in the seventies, I took an active part in politics through the formation of a political group with a social democrat inspiration together with some other fellow students, among them Evarist Bartolo," he says. "We tried to make the public aware not only of Malta’s social problems, but also the injustices being committed in foreign countries.

"We organised national protests against the dictatorial regimes in places such as Greece and Chile."

Having left university, he contested the general elections on behalf of the Malta Labour Party.

I ash him whether his decision to affiliate himself with the Labour party stemmed from his family background.

"My parents never interfered in my life," he answers. "Although of humble origin they always respected my choices in life.

"But for me the Labour party was a natural choice. I believed it was the force of change and the catalyst to effect social reform in the interest of those who had no voice."

Dr Borg fared well in his first two attempts at the polls, but fell short of a few votes which would have seen him elected. I am interested in what he regards as the reason for his lack of success in the general elections, and his reply is immediate.

"I never came to grips with the system of intense internal competition based on a great element of deception," he explains. "Those who make the most promises of favours to the electorate stand a better chance of getting elected.
"Door to door canvassing used to make me feel ill. I could not adapt to the system."

Dr Borg is also known to be fairly moderate in his views. Does he think this put him at a disadvantage?

"I think the days of militancy are gone," he answers. "Normally people in Malta tend to vote for those candidates that can help them on an individual basis.

"The Maltese electorate has not been educated enough to vote on political issues. Rather the majority of voters try to invest their vote in obtaining maximum dividends.

"I believe that in Malta everyone is important and can contribute to the common good, irrespective of one' s political creed."

From the disillusionment that is evident, can I presume he will not be contesting the next general election?

"Once you leave the political arena it is very difficult to return. I do not intend to contest the next general election," he says.

I ask him what he believes to be the MLP’s greatest achievements.

"Labour secularised Malta," he says. "It strengthened independence.

"Labour governments created and maintained the welfare state and made the Maltese realise that we are inferior to none.

"The l996-l998 Labour government made us aware of the precarious economic situation that we are in. In its short term of office, Labour started to reform the economy and embarked on a programme of restructuring which unfortunately was not followed up by the present government."

So what does he believe to be the reason for the MLP’s dwindling popularity?

Dr Borg disagrees with the fundamental idea that the Labour party’s popularity is ailing.

"The Labour party was and still is a very popular party," he replies. "In 1987 it did not win the election, partly because it has been too long in office and partly because certain Labour ministers became so arrogant that Labourites themselves felt deceived.

"The same is happening now. The Nationalist government has been governing the country for such a long time that certain ministers are as arrogant as some Labour ones in l987.

"With Alfred Sant's election as Labour leader, the party embarked on a programme of modernisation - in its policies and in its political tools.

"The Labour party had and has a problem, but it is not one created by itself: it is the problem of the media.

"Even the so-called independent media in reality militates against Labour. In this way, democracy is being betrayed."

Having brought up some political controversies of the past, I am interested to know what changes Dr Borg perceives in Malta’s Labour party to the one that was elected just over 30 years ago.

"The MLP has changed a lot in its outlook," he replies. "It still retains its basic beliefs of social justice and the process of modernisation and change. But the problems we are facing today as a country are different from those of the seventies and by necessity Labour had to change to address contemporary difficulties.

"Unfortunately this is not appreciated by certain elements who are too nostalgic of those days. These are however few in number."

Staying on the subject of today’s Labour party, I ask him how he reacts to criticism that the MLP is not united.

"The strength in Labour was to allow diversity of opinion within its flanks," he replies. "Questions of policy are discussed, but finally majority prevails.

"This is not political division, but a democratic process which should be encouraged. It is natural that some 'old Labourites' do not feel comfortable with change but I think they still vote Labour."

On the subject of Old Labour, I ask Dr Borg whether he feels that the Labour government should have striven harder to find a solution with Mintoff rather than opted for an early election with disastrous results.

"Labour wanted to introduce reforms, it was trying to get the economy back on its feet.

"I think Mintoff did not respect the will of the majority. He wanted to dictate his own views. Labour could not carry on governing with such a hindrance. Mintoff did a lot for Malta and should be respected for that. "Some think that he grew jealous of Alfred Sant who was doing well as Prime Minister.

"I do not believe Mintoff's excuses for voting against Labour. Someone has to explain the Mintoff - De Marco friendship some day."

And how does he explain Lino Spiteri’s decision to leave the MLP?

"Lino Spiteri declared that he no longer had the same views as Labour on the issue of the European Union and on VAT," he answers. "His position was different before the l996 election.

"Having changed his opinion on such basic issues, I think it became natural for him to leave the Labour party."

As we turn to the issue of European Union membership, Dr Borg is quick to say that he believes the Nationalist government has wasted too much energy on this issue to the detriment of other important duties.

"It did not concentrate on attracting foreign investments; unemployment is increasing, the financial deficit is deepening, tourism is falling," he asserts. "No new initiatives are being taken. As a country, the debate is absorbing all our energy.

"The EU was a good phenomenon to the Continent. Malta has to look at the question of entry with more caution The political career of a person should not be a substitute to our common good."

While he is offering up some thoughts on the government, I ask him how he felt he was treated by the Nationalists as chairman of Bank of Valletta.

"I was treated very badly," is his answer. "When I became chairman I resigned as a Party candidate.

"I voluntarily stopped my weekly contributions in ‘L-Orizzont’ and tried to manage the bank on a professional basis."

But he does not talk as if he holds grudges, saying: "Although I have been abused a lot by the Nationalists I still believe that Malta needs everyone and political vindictiveness does not appeal to me."

He was, of course, Chairman of Bank of Valletta when the whole ‘Daewoo’ scandal broke. What are his views on this now, I ask.

"In Malta we do not have the culture of resignation on wrongdoing," is his reply. "The Daewoo case was a case of bad lending.

"Banks should never repeat it. I cannot say whether there was any wrongdoing but I firmly believe that the loan was not conducted in a very professional manner."

I ask him finally whether he would expect the MLP to pick up where it left off if re-elected.

"I am sure that Labour would not be vindictive to anyone," he stresses. "It is not in the Labour veins.

"Every government makes mistakes and if Labour made any mistakes, I do not think it would repeat them.

"But Labour cannot avoid its instinct of change and modernisation. Back in power, it would have the task of modernising the economy and restructuring it.

"The present government is not reforming the economy, which the country so badly needs."