Local councils face their worst crisis ever

If there were any doubt that the politics of ‘local government’ went slightly beyond the local, one need look no further than the recent shenanigans at the Sliema council.

The saga climaxed this week with the ‘expulsion’ of mayor Nikki Dimech from the Nationalist Party over bribery allegations; but even at a cursory glance, the raw ingredients of a much deeper malaise, affecting most councils to a greater or lesser degree, are plainly visible.

Starting with the allegations themselves: Dimech at first admitted during a police investigation that he had asked for ‘commissions’ on a public contract. He now contests this version of events, with friends insisting that he was coerced into signing the confession following extraordinary pressure from the Nationalist Party.

Either way, the claim of ‘soliciting bribes for contracts’ is hardly limited to the Sliema local council. Earlier this month, Santa Venera’s Nationalist mayor Elizabeth Vella resigned after allegations that she had accepted an (admittedly small) €80 bribe. Elsewhere there are at least four local councils currently under police investigation over financial misconduct: one mayor has had his laptop confiscated in connection with criminal investigations into fraud; another stands accused of falsifying documents; and in San Gwann, the mayor himself asked to be investigated, in a bid to clear his name of similar accusations.

By MaltaToday’s count, eight out of Malta’s 68 councils are somehow embroiled in allegations of criminal activity… mostly financial impropriety, but also including one case of a deputy mayor assaulting a police officer, and another case involving sexual offences.

From this perspective, it is difficult to escape the perception that local government is in deep crisis.

Political jockeying

Back to the Dimech case – it seems financial misconduct is not the only underlying issue. This week, PN secretary-general Paul Borg Olivier was witnessed “bullying” another Sliema councillor during an informal meeting at the Lady Di pub in Sliema into signing a declaration of no confidence in the mayor.

This in turn suggests that the problem runs far deeper than a small-scale ‘tangentopoli’ in Sliema: Nikki Dimech has clearly lost his party’s trust, and there is mounting evidence to suggest a concerted effort by the party machinery to supplant him with a preferred candidate… believed to be Johanna Gonzi.

Without entering into the merits of the case, it must be pointed out that this situation – so symptomatic of the naked power-hunger that characterises national politics – is by no means limited only to Nationalist-led councils.

Last month, Fgura’s Labour mayor Darren Marmara chose to resign rather than face a vote of no confidence called by councillors from his own party.

As in the Dimech case, the Labour Party also lost trust in Marmara, and went as far as to say so in a public statement before the vote was even due to be taken.

But in the scramble for power than followed, it turned out that his automatic successor to the post, Anthony Degiovanni, did not enjoy his party’s trust either. In a politically engineered manoeuvre, Degiovanni also resigned to make way for Byron Camilleri, the party’s chosen candidate.

In all this unsightly mess, with candidates backstabbing each other and parties jostling to install their own protégés as mayors, a couple of small questions are crying out to be asked.

How are the ‘best interests of the locality’ being served by all this political jockeying? And are local councils really an exercise in devolution of power… or just a playground for junior politicians to rise through their respective party ranks?

Political pandemic

Labour Party deputy leader (and local council spokesman) Dr Toni Abela admits that something is very seriously amiss, though he is careful to cloak his words in diplomacy.

“First of all, I must pay tribute to the many councillors, on both side of the political divide, who work relentlessly and honestly for the exclusive benefit of their locality. What I will say today should be taken within this context,” he begins.

Disclaimers aside, Abela immediately launches onto the offensive.

“Yes. The local government system is in a crisis, though I believe that we have not arrived beyond redemption. The system can still be salvaged...”

According to Abela, a “good moral and ethically correct reference” is urgently needed.

“I believe that at present this reference does not exist. What we are seeing on the local level are but the signs of the times in the current national administration. In effect, most institutions are in a crisis. There seems to be a deficiency of morality in politics at all levels of administrative structures.”

Perhaps predictably, the PL deputy leader attributes this to the recent spate of high-level corruption allegations, contributing to a widespread perception that ‘high ethical standards’ (ironically, of the kind exacted by Paul Borg Olivier from Nikki Dimech) are markedly absent at government level.

“The continuous flow of news that reveals unethical and unorthodox practices at higher echelons of the administration, has unleashed, it seems, this pandemic feeling within government, that being mildly unethical in governance is acceptable. Mildness is the first stage; much worse usually follows…”

Considering that Labour councillors have also been embroiled in controversy: what exactly is the PL doing to counter the perceptions of a slump in ethical standards among its own representatives on local councils?

“The PL has adopted a stricter candidate selection process for local councils, and will continue to make the selection stricter,” Abela asserts.

“The Labour Party took immediate steps whenever it came to its knowledge that there was misbehaviour or improper practices, irrespective of any political fallout. When the position of any councillor or Mayor was no longer tenable with principles of good governance, we did not mince words. We gave ample proof of this.”

In more concrete terms, Abela indicates administrative changes in the screening and selection of prospective candidates.

“Since last year, prior to local council elections, the party set up an ad hoc commission to evaluate candidates and make its recommendations to the National Executive.  The commission considers the candidate from all relevant aspects.

“The Commission also takes into consideration past performances if the candidate. I can reveal that there were a number of cases where, to the candidates’ disappointment and that of their family, they had their application turned down...

“We are also insisting that team spirit is of essence for the good running of the council.”

Systemic reform

Significantly, Paul Borg Olivier – understood to be deeply involved in the ongoing saga regarding the Sliema local council – ignored all questions sent to him in his capacity as PN secretary general: including what concrete steps (if any) his party was currently taking to address the issue of corruption at local government level… and whether there are any sort of screening procedures in place to approve the candidature of Nationalist contestants for local council elections.

But Dr Chris Said, the parliamentary secretary within the Office of the Prime Minister responsible for local councils, was considerably more forthcoming.

While acknowledging that problems do exist within the system, Said is understandably keen to downplay talk of “crisis”.

“It is very unfortunate that the misdeeds of the very few can throw into disrepute the excellent work being carried out by the majority of the 68 mayors and the 450 local councillors around Malta and Gozo,” he said.

“But it is a fact of life that only when problems occur, does it make the news. The normal and efficient workings of the absolute majority of our system of local government is taken for granted.”

Said however concedes that the council system had to be reformed last year, in part to address mismanagement and transparency issues.

“The Reform of Local Councils, which was unanimously approved by Parliament in 2009, includes a number of measures which are meant to ensure and guarantee maximum transparency in the use of public funds by local councils. For instance: an audit of each Local Council is carried out at the end of each financial year in every Local Council. The Department of Local Government, in collaboration with the Office of the Auditor General, is now carrying out a detailed audit of three local Councils chosen at random.”

Said also points out that it is now obligatory for the Executive Secretary to have the Payments Schedule put forward for approval attached with the meeting’s agenda. Penalties were introduced for those Councils that fail to submit financial statements.

“Any allegations of corruption are handled at once by the Department of Local Government. Should there be the slightest of suspicions about any irregularities, all the information is passed on to the competent authorities for investigation: the National Audit Office (NAO); the Internal Audit and Investigations Department (IAID); the Police; or the Monitoring Unit within the Department for Local Government (DLG).”

Elsewhere, Said points towards “various mechanisms” to oversee the operations of Local Councils.

“The Monitoring Unit within the Department of Local Government continuously monitors Local Councils, their public accounts, payments, and the council meetings’ minutes. The monitoring unit also handles all types of allegations levelled against any Local Council or councillor.

In Said’s view, one of the most important reforms carried out in Local Councils involves the role of the Executive Secretaries of Local Councils.

“Prior to the Reform, the Executive Secretary was employed by the council and his employment and performance bonuses depended on it. Now, the Executive Secretary is a public officer and is hence is in a better position to bring any improprieties to the attention of the relevant authorities without fear of repercussions.”

The parliamentary secretary claims this system has already yielded results.

“The system of checks and balances has helped in bringing to light the few instances of improprieties that have recently made the news. Some of the cases (mentioned above) were in fact flagged and brought to the attention of the Department of Local Government by Executive Secretaries…”

But Chris Said rejects out of hand the suggestion that the local council situation may be a reflection of a ‘culture of misconduct’ emanating, as it were, from the very top.

“The Prime Minister’s stand on zero tolerance towards corruption applies to whoever occupies public office, even at a local level. Whoever is found guilty of corruption faces the consequences of his or her actions accordingly.”