OK, Mario go ahead… waste our money

The damning report by the National Audit Office on the reacquisition of the Café Premier published this week slams the Prime Minister’s own decision to authorise a bailout of €4.2 million out of taxpayers money. The auditor’s report included an email from the Prime Minister, copying in his chief of staff, to the Principal Permanent Secretary, instructing “ok – Mario speak with finance to go ahead”. 

This information was only revealed following the auditor’s report, an investigation which was requested by the Opposition way back last summer when the Café Premier scandal was revealed. Had it not been for the Opposition, this scandal would have remained under wraps. 

What is scandalous about the Café Premier is the fact that the government could have reacquired the site without spending one cent of taxpayer money, as the terms of the ground rent had been violated for a number of reasons. The fact that the tenants had fallen back on payment for three consecutive years, provided the government with legal grounds to terminate the lease. However, for some reason, the Labour government decided that the easiest way out was to pay €4.2 million of taxpayer money. Joseph Muscat selected the most expensive and unfair option!

What stinks in the scandal is the Prime Minister’s involvement. The chronology of events raises doubts on whether this was a pre-electoral promise. The Prime Minister has to explain how the cafeteria closed its doors the day after the general election, with a request for a bailout made a few days later directly to the Prime Minister. 

The auditor concluded that not only did the Prime Minister authorise the transaction, but he was also involved in negotiating the sum, starting at some €3.5million up to €3.9 million. We are paying for Joseph Muscat’s incompetence (and probably also for his electoral promises). Through this scandal, we have paid for Café Premier’s bank loans, utility bills, VAT arrears, social security contributions, arrears of unpaid ground rent, legal expenses related to court cases by the Lands and VAT Departments respectively, and arrears owed to third parties for unpaid sales. 

The auditor general however investigated the €210,000 in commissions paid, which brought the figure up to €4.2 million. My colleague Jason Azzopardi had in fact stated that this bailout smells of corruption, with a clear reference to the commissions paid. What were these commissions paid for? As though paying debts owned by a bankrupt private company through public funds would not suffice, Joseph Muscat agreed to hand out a further €210,000. The report concludes that a clear justification was not provided and that this figure happens to be 5% of the total deal – coincidentally the typical rate for commissions. 

Another aspect that raises suspicion is the Prime Minister’s decision to keep the Lands Department out of the negotiations. Months back, I had addressed a news conference on the doorstep of the Lands Department stating that the former Lands Commissioner’s resignation was mainly due to the lack of communication and political influence. Back then, I had stated that Joe Bugeja was made to sign for decisions he never made, but was nonetheless legally responsible for. Café Premier was one of them. 

The civil service is there to assist the government in implementing its electoral manifesto, but has an added responsibility to ensure that decisions are taken properly and according to established procedures. This is what ensures good governance and transparency. By keeping the Lands Department in the dark, Joseph Muscat has effectively discarded established procedures. He acted like a hero, autocratically and above the law. I wonder whether Malta is the only modern democracy whereby the Prime Minister, personally, negotiates a cafeteria bailout! Considering that the Café Premier scandal is the makings of he who promised a new style of politics, transparency and good governance, it is ironic, to say the least. Indeed, what we got is the exact same opposite.

This is the biggest scandal the Prime Minister has been involved in since his election to power. This is his making from beginning to end, and likewise he must shoulder responsibility. When he was Opposition Leader, he used to boast in using and abusing the word accountability. Does accountability mean anything, any more, to him? 

Uncovering this scandal was our responsibility. Labour does not give a hoot about equality and fairness. An old lady who can’t cope with paying her utility bills and ends up without electricity, should be asking – will Joseph Muscat pay my bills? A young couple who have just undertaken a mortgage for their first home, might ask – will Joseph Muscat pay our debts? A businessman or self-employed person whose business is going wrong, should ask – will Joseph Muscat bail me out? A tenant who’s falling back on his ground rent, might also ask – will Joseph Muscat pay my arrears? If he paid Café Premier, why shouldn’t we be treated the same?

No, the Prime Minister won’t pay this for you or Malta would become another Greece. If you then feel you have been treated differently, then this is the time to hold the Prime Minister to account.