Bring on the Czars

How best to tackle corruption in Malta?

Frank Portelli 13 June 2010, 12:00am

3 min read

On 30th May 2010 Prime Minister Gonzi urged everyone to come up with an explosion of ideas. Although in my experience as soon as an idea is floated the usual snipers are ready to try and shoot it down, I will raise my head above the parapet and I will be proposing a few ideas on this blog.

Here’s one idea – bring on the Czars (or Czarinas if you prefer). Three years ago - almost to the day - I had made a plea for a Public Interest Disclosure Act, more popularly known as a Whistleblowers Act, a law which in other countries has protected many individuals who acted in good faith to disclose evidence of corruption. It could do the same in Malta.

Whistleblowing can expose VAT fraud, income tax evasion, social security fraud, healthcare fraud etc. In the US one pharmaceutical company was fined millions of dollars by the government for giving commissions to health care providers – whilst yet another pharmaceutical company was fined for overcharging Medicare patients. In the EU, Paul Van Buitenen, an auditor to the Europea Commission, exposed the financial mismanagement which brought down Jacques Santer and Edith Cresson in 1998. Because Van Buitenen was not protected he was suspended on half pay.

Most countries now have a whistleblower act which protects individuals from retaliatory measures. In January 2002 Malta became a signatory to the Convention on Corruption of the Council of Europe - (Strasbourg, 4.XI.1999). In this Convention, corruption is defined as “requesting, offering, giving or accepting, directly or indirectly, a bribe or any other undue advantage or prospect thereof, which distorts the proper performance of any duty or behaviour required of the recipient of the bribe, the undue advantage or the prospect thereof."

I have simplified my definition of corruption since then. I now define corruption as any situation where one individual says "thank you" and the other replies "don't mention it ". And they both mean it! Hope springs eternal - so I am still hoping that one day Parliament will approve the Whistleblowers Act.

In addition I am now proposing that strengthen our fight against corruption by establishing a number of politically appointed “czars” in various fields (the term Czar - Russian derivative from Caesar - who wielded absolute political power and paid for it dearly).

Modern Czars are political appointees, with executive power in a particular field. Political power is normally wielded hierarchically from above downwards - political czars have executive powers horizontally across all departments that relate to their particular field. As political appointees they are accountable to the Prime Minister. In the US, Obama has to date appointed more than twenty czars to troubleshoot particular areas - with some good results. Czars may come from across the political divide - only recently British Conservative Prime Minister Cameron appointed ex Labour Minister of Social Welfare Frank Field as a "Poverty Czar “ .

Here in Malta I propose we start with an “Anti-Corruption Czar” and give him or her the means to fight corruption. Later we can appoint a “Drug Czar”, an “Environment Czar”, a “Health Czar”, an "Energy Czar”... did I hear you say a Grand Master?

More from Frank Portelli

Angelo Cassar •

You are right of course First we need to be more efficient especially in the Public Sector Last year 2009 - the European Commission published an analysis based on the data from the previous year "Public Finances in EMU 2008" The report makes salutary reading - ( excuse pun). It found for instance that efficiency in the Malta Health Service “is poor amounting to less than 0.4 “ This means that we could achieve the same level of output with 40% of the present expenditure http://ec.europa.eu/economy_finance/publications/publication12832_en.pdf The section on Malta is section 17 pages 247 -249 There's work for a good Czar here too. Thanks Frank Portelli

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indeed. With the eu now classifying our finances as not sustainable in the long term, the health care system will come under increased pressure even if inequalities are growing by the day. This does not bode well for us all. We need, as a nation, to take stock of our resources, remove financial pressure on the one hand, and printing-of-money philosophies on the other in the private sector, to identify an efficient system that will be sustainable and will serve our population well. Government, any Government, needs a critical mass of socially spirited individuals to run resources efficiently, effectively and without commercial pressures. Big debate.

Angelo Cassar •

Danny - thank you for your comments I promise you nothing hurts me more than seeing inequalities in health We still have 2 tier medicine in this Country Waiting for medical treatment is actually rationing of health care I have written in great detail how waiting lists can be tackled and I will continue to do so - of course none of my proposals have been taken up so far. I will take the subject up in a blog here in the near future – but look out for my next blog on the Greatest Medical Scam of this century. your comments much appreciated Frank Portelli

Angelo Cassar •

Had I given up ---- I would not have said that “in addition I am now proposing to strengthen our fight against corruption by establishing a number of politically appointed “czars” in various fields” Corruption does not have a particular colour --- indeed it often has the colours of the rainbow. I know that like me you would like to see the fight against corruption intensify – and that’s what we should be focusing on thanks and regards Frank Portelli

Luke Camilleri •

If Whistleblowing can expose VAT fraud, income tax evasion, social security fraud, healthcare fraud etc. why isn't Gonzipn implementing it? Why has Dr. Frank not continued to make "Pleas"? Qatgha Qalbu? Quote - I had made a plea for a Public Interest Disclosure Act, more popularly known as a Whistleblowers Act, a law which in other countries has protected many individuals who acted in good faith to disclose evidence of corruption." Somebody has swallowed the whistle?

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Dr Portelli for further info on the Czar concept. This concept can be a further addition to existing structures that seek to manage corruption. My immediate concern is that Government seems to apply no energy to make best use of existing structures and to send out a clear message that it stands for best practice. We have a car, yes it can be a better car, but the immediate priority sees to be the need of a driver. May I take this opportunity to thank you for your brave stance you take on realities in the health-care sector. Yes, the quality of health is depending more and more on how much money one has. The Labour Party seems to be able to put its weight behind the high cost of medicines, but seems to drag its feet on the waiting-list issue (beyond lists for operations) for possibly obvious reasons. The Nats, in turn, hibernate for most of the tie on both issues (the weight of so many years in Government seems to be weighing them down on most fronts). Thanks for taking time to react to my comments. I am sure that these will increase in the coming months.

Angelo Cassar •

Danny Political power is hierarchical – it runs from top to bottom A Czar is not bound by bureaucracy and his power lies across the various departments - so that he can effectively cut through bureaucracy that hampers investigations. Czars have been effective in many countries – in Britain, in the UK even in Korea ! Corruption has been around since time immemorial The greater the bureaucracy – the greater the chances of corruption Look at hospital waiting lists – relatives of patients who cannot bear to see their relatives waiting years for an operation will pay so that they jump the queue. A Public Disclosure Act is the back bone of any system designed to protect bona fide informers A Czar could ensure that the system works One area where he / she would be effective is tax evasion --- which in my view is a main factor causing Government Deficit However in essence we agree Frank Portelli

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Czar? just another mouth to feed. Proposed Public Interest Disclosure Act would be a welcome addition to checks and balances that are already in place. What is lacking is political wlil to stand up to corruption. True that any Government is under pressure to deliver but this Government seems to condone all sorts of misbehaviour and comes over as being disinterested in ensuring correct behaviour that promotes good governance.