Employers' association lays out good governance demands

The Malta Employers' Association has come up with a range of proposals to tackle rising good governance and corruption concerns, which it warned is damaging business confidence and Malta's international image.

Key among these is the demand for public contracts to published in full within three months and for no public contracts to be signed with entities whose ultimate owners are unknown or hidden behind a trust - as was the case with Vitals Global Healthcare. 

It is also calling for persons of trust to be subjected to periodic audits by an independent board - which will include representatives from the Opposition - where they will report on time spent, activities and results achieved. The number of persons of trust must be subject to a ceiling and their employment contracts published in full.

The MEA's document also proposes that key positions in authorities be approved by a two thirds majority in Parliament, that direct orders be capped, and that local media must be represented on all state visits abroad.

Elsewhere, the MEA is calling for a leaner Parliament with 41 full-time MPs and for ministerial salaries to be increased to the level of Maltese CEOs. 

"It is evident that the current rates of remuneration will not attract the best persons to fill these posts - many skilled people are keen on entering politics but don't want to see art earning only €55,000 a year," MEA director Joe Farrugia said. "Besides, when they aren't paid well, ministers will be more tempted to increase their income on the sly."

Farrugia described the current situation in Malta as a “paradox” – with rising governance concerns and declining faith in the country’s institutions occurring at a time of positive economic performance.

“Corruption, even if perceived, is not good for business. Malta’s international reputation will only be secured if we can ensure and demonstrate that our institutions have strong values and ethics.”

What else is the MEA proposing?

• A detailed study on why Malta has such a high number of school dropouts and a low percentage of people having completed tertiary education, despite the fact that 5.5% of the country’s GDP is spent on education.

• Patients should pay for medicines and be reimbursed by government to foster public awareness of the true cost of free healthcare.

• A rationalisation exercise to the determine the extent of idle labour in the public sector, followed by the laying off of excess workers.

• A radical change in Air Malta’s work practices and industrial relations culture, to render the airline a more attractive investment opportunity.

• Less red tape in the processing of work permits for third-country permits

• Fewer public holidays with the saved hours allocated to other purposes such as paternal leave.

• A change in sick leave laws to design a “fair package” which will be beneficial to honest employees whilst discouraging abuse, which the MEA says is rampant.

• An in-depth study on the current occupants of social housing units, so as to ensure that they are only being occupied by people near the poverty line. 

• The total revamp of the Equality Act, which the MEA warns vests the Equality Commissioner with too many powers.