Office of the Prime Minister silent on ministers’ business interests

MaltaToday attempted to acquire the list of ministers who by now should have informed the Prime Minister they have given up interests in private companies following their appointment to the Cabinet.

According to point 46 of the Code of Ethics, every minister must inform the Prime Minister in writing of the arrangements made.

The 1994 Code of Ethics of Ministers states that ministers must see that no conflict arises nor appears to arise between their private interest and their public duties.

"In order to safeguard the personal integrity of the Minister and the collective integrity of the government, every Minister is duty-bound to avoid any conflict, real or potential, between his private interest and his public duties," the Code of Ethics reads.

As soon as a minister is appointed, he or she is expected to stop private work, even if it is not remunerated. The prohibition also covers consultancies, attendance at offices and clinics to give professional advice and so on.

For this reason, Godfrey Farrugia made headlines in newspapers for having continued to see patients, by appointment, at his private clinic in Haz-Zebbug soon after becoming health minister.

However, conflict of interest does not arise only through meeting clients but also from holding directorship posts in private companies.

According to the Code of Ethics, as soon as he or she is appointed, a minister should resign from any other public office and also from any post of director or other similar post, whether in a public or private agency or a voluntary association.

In the case of Tourism Minister Karmenu Vella, until recently chairman of Orange Travel Group - exclusive agents of Costa Cruises in Malta - he had to divest himself of the chairmanship of the company, together with that of chairman at Corinthia Hotel Group.

While MaltaToday has been unable to confirm the ministers have resigned their private posts - with government failing to communicate this information - Finance Minister Edward Scicluna appears to still hold a directorship role at HSBC Malta Funds SICAV plc, among other companies.

The Code of Ethics also states that in the case of ministers who, before their appointment, were self-employed, exercised a profession or were in business, they are not bound to dispose of interest or shares.

However, the necessary arrangements must be made to ensure that the minister dissociates himself from the direction or management of the office, trade or business and that he does not continue to participate in the payments or profits, except for a fixed sum each year considered as due in return for his previous investment.