Prominent business stakeholders and constituted bodies have expressed varying degrees of optimism, yet underlined the need for caution, in response to new Prime Minister Robert Abela’s first moves since he took office on 13th January 2020.

The Malta Chamber of Commerce, Enterprise and Industry, the Malta Hotels and Restaurants Association (MHRA) and the Malta Chamber of SMEs (formerly GRTU), together with the CEO of Eden Leisure Group and President of the Malta Business Bureau (MBB), Simon De Cesare, prominent hotelier Winston Zahra and iGaming stakeholder, Alan Alden, were somewhat divided on the signals being conveyed by the new administration.

Malta Chamber President, David Xuereb, said that the entity is “cautiously optimistic” about Dr Abela’s reaction to its recent manifesto on good governance, noting that the Government has already begun implementing some of the proposals suggested.

Malta Chamber of Commerce President David Xuereb 

He also praised the establishment of a committee dedicated to the purpose.

“Both sides agreed that the foremost priority for the country was to safeguard Malta’s reputation,” said Perit Xuereb

The CEO of the Malta Chamber of SMEs, Abigail Mamo, also agreed that, so far, Dr Abela’s actions have been “encouraging”, saying the Chamber “is not naive and appreciates how delicate the situation is, and hence the difficulty in taking certain decisions. Yet there is no question of whether these decisions should or should not have been taken.”

After being officially sworn in, Dr Abela appointed one of the youngest – and largest – Cabinets, showing a lack of continuity from his predecessor. He also accepted the resignation of Police Commissioner Lawrence Cutajar, who was heavily criticised for his lack of action surrounding high-profile cases of alleged corruption, and gave instructions for the make-shift memorial to murdered journalist Daphne Caruana Galizia not to be cleared.

Malta Chamber of SMEs CEO Abigail Mamo 

Ms Mamo praised these developments saying that “Maltese businesses that also work outside our shores have already started feeling the change in attitudes.”

Yet, the CEO underlined the need for caution when she noted that “many more big strides are necessary to show how seriously we take corruption and good governance. We are not a corrupt nation and to show this we have to get to the bottom of it all.”

And, indeed, recent developments have lent credence to her prudence: ex-Tourism Minister Konrad Mizzi was nominated to the Head of the Maltese delegation to the Organisation for Security and Cooperation in Europe (OSCE), causing widespread anger, and leading to the nomination being rescinded just hours after it was revealed in the press. An €80,000 consultancy contract awarded to Dr Mizzi was also terminated.

Moreover, a consultancy role given to former Police Commissioner Cutajar also caused people to question whether Dr Abela is set on the right track.

Reflecting many of these sentiments, Tony Zahra commended Dr Abela for his initial decisions. However, he questioned whether such standards will be maintained. “If affirmative, then I think we are truly on the way to regaining our international credibility.”

Malta, Hotels and Restaurants Association President Tony Zahra 

Mr Zahra elaborated further, stressing that Malta “cannot be seen as at best being opaque in our governance. In our international dealings it is not just government that must maintain high standards, but it is also the private sector that must ensure that it adheres to the highest of standards.

Malta Business Bureau & Eden Leisure Group
CEO Simon De Cesare

Eden Leisure CEO and MBB President, Simon De Cesare also expressed mixed feelings. “The signal that he [Dr Abela] favours continuity in the economic vision for the country is positive for normality in the business community. Yet, non-continuity in certain other questionable activities and affiliations will also provide normality to business as well as the rest of society,” commented Mr De Cesare.

Mr De Cesare said it was imperative for the Prime Minister to bring about normality, and this could be achieved through the implementation of the recommendations within the Venice Commission and Moneyval reports; an analysis of the independence of all relevant authorities, in particular the Broadcasting Authority; and finally – echoing Ms Mamo –closure on the Daphne Caruana Galizia case with all involved brought to justice.

Prominent hotelier Winston Zahra was also cautious, stressing that there is still a long way to go “to ensure the proper level of confidence is reinstated in our institutions”. He said that, in his view, such confidence will only be achieved “from the way thorough investigations are carried out on the protagonists that have been implicated in some way in suspicions of corruption, money laundering, and mostly the murder of Daphne Caruana Galizia.”

Prominent Hotelier Winston Zahra 

“Until the country is completely convinced that this happens, and that absolutely no one is beyond reproach, I think it will be difficult to establish the desired level of normality expected within a modern European country,” he underlined.

Yet, out of the business leaders interviewed, Alan Alden proved to be the most sceptical when evaluating Dr Abela’s first few weeks, acknowledging that some actions taken have been positive, but cautioning that it is too early to make a judgement call.

He also criticised the retention of certain controversial figures. “Allowing people to resign, or to work in the background, does not reflect strength of character and power. That is why people are not yet convinced, as nothing drastic has happened to show that he means business or that things are about to change in a positive manner. Are we going to remain with all these persons of trust with everyone doing what they like with impunity? Unless, of course, you’re just a commoner without the right connections,” Mr Alden questioned.

This article first appeared in the January edition of The Malta Business Observer.