Updated 1140
Electrogas inquiry finds Schembri and Mizzi planned ‘corrupt payments’: A magisterial inquiry found that former Maltese officials Keith Schembri and Konrad Mizzi orchestrated corrupt energy deals, laundering millions from Azerbaijan through Panama and UAE structures. The €450 million Electrogas power station contract was allegedly manipulated to fund the scheme, with Azerbaijani partner Socar passing illicit payments via fake invoices and art purchases. Funds flowed through 17 Black, owned by Yorgen Fenech, linking to secret Panama companies. The operation unraveled after the 2016 Panama Papers leak. Schembri, Mizzi, Fenech, and others face charges, which they deny. Investigators say the Electrogas selection was rigged, with government advisors like Brian Tonna ensuring a facade of fairness while favouring pre-selected bidders. (Times of Malta)
€11m less recovered from Panama Papers, Swiss Leaks than originally thought: New government data shows Malta’s tax authorities recovered around €23.8 million from Panama Papers and Swiss Leaks investigations between 2016 and 2023, €11 million less than initially reported. In 2020, then-finance minister Edward Scicluna said €27.6 million had been recouped, but revised figures reflect taxpayer objections and reassessments. Only high-risk cases were fully investigated, with just five concluded between 2021 and 2023. Globally, authorities reported recovering $1.3 billion from the leaks, though actual figures may be higher. Malta’s recovery, cited at €16.5 million by the ICIJ, lags behind countries like the UK and France. The revisions highlight discrepancies and challenges in tracking recovered tax revenues. (Times of Malta)
Children not sitting for MATSEC exams expected to stay home for 2 months: The Education Commissioner, Vincent De Gaetano, urged authorities to protect the right to education for children, especially those with disabilities, who are being told to stay home during the MATSEC exam period. Parents of children supported by Learning Support Educators (LSEs) and those in the Core Curriculum Programme (CCP) raised concerns about a lack of alternative education options. Although a special course is available, poor communication meant few parents enrolled their children. De Gaetano criticised union directives that prevent redeploying LSEs to support younger students and stressed that children with disabilities must not face discrimination. He also highlighted the emotional and financial strain already borne by affected families. (Newsbook)
Morning Briefing
HSBC to choose preferred bidder by late Spring – reports
HSBC is expected to choose its preferred bidder by late spring, with media reports indicating that Hungarian bank OTP is now out of the running. The first negotiation phase, where HSBC met interested parties, has ended, and final bids are now being submitted. Initially, six bidders expressed interest in acquiring HSBC Malta, but the field has narrowed. After APS withdrew last week, sources say OTP cancelled a scheduled meeting, suggesting it too will not proceed, although it has not formally withdrawn. Both APS and OTP are believed to have sensed weak backing from regulators, with Finance Minister Clyde Caruana previously stressing the need for “more competition” and a reputable buyer. This leaves German fintech RS2 and two unnamed non-EU banks still in contention, after months of discussions with HSBC. (Times of Malta)
Abela highlights economic growth driven by workers’ resilience
Prime Minister Robert Abela praised the government’s achievements in the labour market, saying Malta’s economy grew five times faster than the EU average, thanks to the resilience, prudence, and skills of Maltese and Gozitan workers. He said this success was possible because the government strengthened workers’ rights. Abela recalled that when Labour took office in 2013, 8,000 people were unemployed, but the government reversed this trend, creating seven job opportunities for every jobseeker. Abela pointed to reforms like the tapering of social benefits, in-work benefits, free childcare, and other initiatives that encouraged more people to join the workforce, leading to today’s full employment. (TVM)
Traffic plan will fail without population control, Grech warns
Opposition Leader Bernard Grech said on Sunday that the government’s traffic plans will fail if Malta’s population keeps growing by 35,000 people a year. Speaking to Peppi Azzopardi, Grech argued that more people inevitably mean more cars, putting further strain on traffic, healthcare, and infrastructure. He welcomed the government’s plan to pay people to surrender their driving licences but said it was not enough. Grech pointed out that the PN had proposed offering €10,000 to families who give up their car for five years without losing their right to drive, allowing flexibility to borrow a vehicle if needed. He claimed the government copied this idea and should give the PN credit when adopting its proposals. (The Malta Independent)