PL MP denounces 'rampant nepotism' in financial services sector

Speaking in parliament, Labour MP Josè Herrera during a debate on a bill to implement budget measures, Herrera hit out at the financial services sector, describing it as a quagmire of nepotistic influence and direct funding that serves to benefit “friends” of those in authority.

Herrera affirmed that the former Gaming Authority CEO, Mario Galea, had been involved in the industry while still serving at his official post. He said Galea was authorised to issue licences to people involved in the company he himself was involved in, even liaising between the gaming authority and the company at times.

Herrera also said there was no problem about getting betting licences so long as one approached Belmed, but if one looked elsewhere, he or she would face “huge problems”. Herrera affirmed that Belmed is in a position to charge four or five times the going rate for its own services - but it was still successful because of its connections.

Herrerra referred to online shopping as another example of flagrant nepotism. He affirmed how online shopping local website trolleymania.com had been formed under the pretext of performing a function which no other company could do locally, and it had received €300,000 in subsidies from the Communications Ministry towards this end. Yet in reality, he affirmed, there already is another company, Ħanut.com, performing that same function.

When trollymania.com was launched, IT Minister Austin Gatt had affirmed that such an important project should have been an initiative driven by the private sector and not by government. 

Herrera went on to add that government had also instructed Bank of Valletta to promote the Malta Expo’s services when it had not yet been Payment Card Industry (PCI)-compliant. This also held true for another company being helped, Icon.

According to its website, maltaexpo.com proposes “to give companies/ sole traders the opportunity to sell their products online in a cost-effective and secure manner.” Its website also proclaims the initiative as “a joint venture between Alert Communications Ltd and Bank of Valletta.”

Yet the agencies set up to regulate the industry had not stepped in to regulate or caution either company, even while other companies were unjustly being undercut, Herrera said.

He also said that when the Malta Expo event had wound up, most of the ‘work’ the event had generated had been given over to Trolleymania.com. This, Herrera said, had now formed Malta Supermarket, a new private company, which had been selected by the government for a financial package in precedence over others.

The company has just launched its website less than two weeks ago – claiming to be Malta’s “first, truly” online supermarket, according to Tony Cassar, managing director of Cyber Space Solutions, the project’s designer.

Herrera accused the government of using “nice words” like “transparency”, “free market economy” and “fair competition”, while at the same time giving precedence and preferential treatment to “friends” who want to exploit a market or business opportunity discovered originally by someone else - through direct financial assistance and undue pressure on clients to use their services.