The Maltese Condition (Malta)

Graft, Murder, and the Commercialization of a Former Island Colony

- Daphne Caruana Galizia Memorial in Valletta 2023

Another cruise ship pulls into the walled city of Valletta. Groups disembark and find their way to the front of Parliament, which sits near the main gate of the fortified city. There they meet tour guides who offer QR codes to allow them to hear about the history of Malta in their native tongue. Visitors wander the area as groups of Italians, French, Irish, and Germans crowd into the space. Other travelers arrive by buses that depart from towns throughout the Eastern part of the country and into the bus station that sits right outside the main entrance of the city. Restaurants fill outdoor and indoor seating. Patrons smoke cigarettes during their conversations as they wait for their meals. Pasta, seafood, and cappuccinos are served by Indian and Pakistani staff. The few nearby hotels are staffed by Filipinos. Individuals from African countries attempt to get people to fill the big bus for a tour on one of three quick tour routes around the region.

In towns such as Saint Julian’s and Saint Paul’s Bay, techno-music venues play until 2:00 a.m.. Maltese nationals will tell you to avoid those areas due to the recklessness of some party-goers after a long night of drinking too much alcohol. Hostels host their own roof parties, while American 1980s classics play in pubs for older patrons who choose to sit and reminisce. Southeast Asian restaurants fill the narrow streets, and people walk in all directions looking for the next interesting place to visit. In Sliema’s more cosmopolitan vibe, couples and families stroll the promenade as friends pose in front of one of the many squares and bays.

Among the buildings from Malta’s past are many churches, so many, in fact, that people say, “We have more churches than days in the year.” In their backgrounds, new office buildings stand tall over the small dugouts that can be called beaches. New plazas have old cannons for a touch of historical significance, at least enough for passersby to take pictures before moving on.

Behind closed doors, young Maltese have given up on democracy, do not find any use in voting, and plan to move elsewhere in Europe—a positive option for members of the European Union (EU). Depending on who you ask, the older nationals have mixed opinions about being a member state. Some say that they gave away their independence as the real price for membership. Yet they all agree that E.U. membership allowed ongoing corruption to plant more seeds in this small island country (only 122 square miles) and the subsequent fruits are still everywhere.

Street in Valetta - 2023

A Former Colony

When modern armchair historians refer to the decolonization process of Europe after World War II, the trendy focus is on the partitioning of Pakistan/East Pakistan (later Bangladesh) and India. Yet before we get to present day Malta, we must start with its days as a colony. The members of the Order of St. John were the occupiers of the islands from 1530 to 1798, but with their rule came developing the islands into prosperity to later despotism, the native population eventually pushed against them leading to the Order’s decline. The French Republic’s occupation under Napoleon was brief, only from 1798 to 1800.

The colonization of Malta by the British Empire started in 1813. Sir Thomas Maitland was the first civil commissioner and commander-in-chief from 1813 to 1824. In his dual role, he actively sought to replace Maltese nationals in positions of power with Englishmen. Thus, the process began to change almost every facet of politics, trade, and social life to match those of the British Empire.

Throughout the 1830s, the islands moved in the direction of some autonomy, leading to the creation of the 1835 Constitution, which favored the British government, but was still a marked improvement over the previous total lack of political representation.

By 1939, Malta was pulled into the Second World War. As a British possession, Malta came under frequent attack by Axis forces from Italy. The war formed a division between Malta and Italy and the islanders actively stopped speaking Italian and adopted English for government and business affairs.

-“Message from Malta” 1943 siege of Malta WW2 Allied Propaganda Film

Decolonization

During my stay in the Southern port of Marsaxlokk, what was most important to me was learning how Malta became independent and the locals’ thoughts on joining the European Union. As background, I had to understand the decolonization process.

It took 19 years after the Great War for Malta to become an independent commonwealth (1964) and 10 more years (1974) to become a republic. Decolonization was not a goal; in fact, former and future Prime Minister Dom Mintoff (Labor Party) was in favor of full integration. He wanted Malta to become a part of the United Kingdom, which would hasten the post-war reconstruction of the islands and put them on an equal footing with the other member nations in the Commonwealth. Prime Minister George Borg Olivier (Nationalist Party) wanted dominion status similar to what Canada and New Zealand established.

During this period, the two main political parties emerged: center left Labor (Partit Laburista) and center right Nationalist Party (Partit Nazzjonalista). Concurrently, Maltese (a mix of Arabic and Sicilian) was made the official language, and the Maltese Constitution was ratified in 1964.

To gain more clarification about this period, I reached out to Comm. Professor George Cassar, president of The Malta Historical Society. His answers were edited for length and clarity.

Thibert: “Can you clarify why Malta was never allowed to become a part of the United Kingdom, despite the 1956 referendum opting for joining?”

Professor Cassar: “The British liked the idea, it seems, but it did not want to take it as far as Mintoff wanted. Why? Because Mintoff wanted Malta to be a part of the United Kingdom. The British saw it as taking on the burden, all the expenses, and all the other realities of doing this. Mintoff said that if the Maltese were like the British in everything, then they would be British. This was a time after World War II that was very difficult. The British realized that economically they could not finance Malta.”

Thibert: “Simply put, is this an instance of ‘we would love to have you, but can’t afford to at this time.’”

Professor Cassar: “Yes, that is a safe way to put it. During this time, the British were trying to decrease the number of military bases and personnel at the dockyard in Valetta, which was owned by the Royal Navy. Mintoff would say, ‘Yes, you would welcome us, but at the same time, we are out of a job.’”

Thibert: “When speaking with Maltese nationals, they speak of this period in the 1960s and 1970s, especially in relation to the political parties as a time when the parties worked for them. Is it fair to state that this was the golden era of Maltese politics?”

Professor Cassar: “Let me explain the political scenario here. In the 1960s, the Nationalist Party was in the government. It is important for me to explain that they were not a fascist party. They were the party of independence. The Labor Party was left wing. Mintoff was described as a socialist, or what we say is Maltese style, meaning ‘when it was convenient to be.’ The 1970s were a new era after independence. The Labor Party was the main party until the 1980s.”

“Going back to your question, let’s say this: no politicians work for you. They work for themselves. Some work more for themselves and some less. However, it is true that in the 1960s, the Borg Olivier government had to build a Malta out of nothing. Remember that Malta had to come out of colonialism and build everything—the economy, social life, education—everything. Now it is ourselves for ourselves. They had to build the modern state of this nation. Mintoff came in 1971 and built on top of what Borg Olivier had started. He began to build his own version of the Maltese state. Here is the difference: Olivier was pro-west and Mintoff was not. It is thought that we simply said good bye to the UK after our 1964 independence. There was an agreement for 10 years between the British and Maltese to continue to use the military bases under the Mintoff government. NATO also had a base here at this time.”

“Mintoff negotiated for more money and a longer contract of 15 years. People say that Mintoff was the liberator of Malta, but these people don’t know history. He did not free Malta from Britain. In 1979, we had Freedom Day when the contract expired. The British did not want to pay anymore. The Maltese government created a situation where they started to say that they kicked out the British. They did not. They simply left.”

“It was not a golden era. It depends on the side you are on. For the Laborites, it was a golden era because Mintoff was the savior, the liberator, the architect. The Nationalists said that Olivier had all of these titles. It really depends on where you stood. If you ask me, the Mintoff era was not a golden era. I consider it an era of tyranny. Mintoff had a way to play with democracy. In a lot of cases, it was either his way or no way.”

-Former Royal British Legion Club in Valletta 2023

Corruption Finds a Home

My original intention when visiting Malta was to learn about its Mafia connection. Throughout the late 2010s, news about various mafia clans using the proliferation of legal and illegal gambling websites after joining the European Union started making the rounds. This was only the surface story. Mob families had infiltrated various schemes such as human trafficking (mostly migrants), narcotics, bird poaching (titled Zoomafia), weapon trafficking, fuel smuggling, money laundering, cybercrimes, and possibly other activities.

The Direzione Investigativa Antimafia (DIA), an anti-mafia investigation unit based in Italy, ruled in 2022 that Italian mafia clans were increasingly “migrating” to Malta. Clans such as the Costa Nostra (Palmero), Santapaola-Ercolano (Catania), Apulian (Puglia), ‘Ndrangheta (Calabria, currently the most powerful family in the world) and families such as the Santa Paola and Cappello divided the opportunities presented to them and opened fronts for illegal cash to flow in and out of the country and into what the news reported in 2021 as “networks of companies and other businesses worldwide.”

What was discovered during the investigations, for example, Operation Double Game by the Organized Crime and Corruption Reporting Project (OCCRP) and Operation Beta by the Italian Carabinieri, Operation Alter Ego D.I.A was that a number of these illegal fronts (i.e., Phoenix International Ltd., Centurionbet, BetUniq, etc.) were tied to Maltese citizens in prominent sectors, including the Maltese Gaming Authority.

The D.I.A went on to comment, “Thanks to a privileged fiscal system and a rapid process to set up a company in the past few years, Malta attracted large investments, even from Italian criminal organizations. This led to Malta being referred to in 2018 as the ‘ATM for the Italian Mafia.’”

Yet this is only a layer of sediment in which Malta slowly sank in. When I inquired about the mafia, the immediate response was, “There is no mafia in Malta.” This quickly drew parallels to the formation of the Sicilian mafia who for decades were referred to as non-existent until the bodies of whistleblowers and honest citizens became too many to ignore. For me, there was a name that popped up that I could not dismiss: former Malta Gaming Authority officer Iosif Galea.

-Internet Vikings On-line Betting Promotion in St. Julian’s 2023

Exposed to the World

For most people, the October 16, 2017, assassination of anti-corruption blogger Daphne Caruana Galizia serves as their introduction to Maltese politics. The car bomb death of Mrs. Galizia is the unfortunate result of the corruption she was highlighting within the country. She wrote her now famous last words in her blog shortly before her murder, “There are crooks everywhere you look. The situation is desperate.”

Her connection to Iosif Galea is his involvement with former EU Commissioner and Minister John Dalli, a Labour Party member who was referred to by Mrs. Galizia as “Dalli’s henchman.” Dalli is currently in a trial over charges that he traded his influence and that his aide attempted a bribe of 60 million Euros to influence E.U. tobacco legislation in 2012.

To understand how we get to this point, we have to return to the period when Malta became a republic, specifically the 1970s. In conversations, Nationals often refer to the period after becoming independent as when the two parties lost their focus and became corrupt.

In the book, A Death in Malta, journalist Paul Caruana Galizia explains, “The post-independence economic model—some manufacturing, low taxes to attract wealthy foreigners, grants for public land for hotels—benefited [Prime Minster] Borg Olivier’s [Nationalist Party] base in the import and distribution trades and the professional class. But while he broadened the availability of national insurance and pensions, the welfare state struggled.”

As the British revenues slowly dwindled during this period, Dom Mintoff (Labor Party) was reelected to stabilize the country’s economy. His solution was a deal with Britain to allow a military base on the island for 14 million pounds a year. NATO members could also use the base. However, these funds did not trickle down to Maltese citizens. Instead, restrictions were placed on many sectors, specifically trade, freedoms were handed over to allies, and bribes were starting to become readily accepted for the importation of international brands such as televisions and food stuffs while nationals received inferior-quality products.

All sectors of Maltese life became nationalized, from banks and hotels to restaurants and newspapers. The monopoly allowed for funds to go to a select few, while the lower classes received little compensation. Personal freedoms were also put more in line with the Catholic church (which is the main religion): no divorces, women became the possession of their husbands, and sex education of both sexes was kept to a minimum. Education was also affected by the closure of art, social science, and humanity curriculums. By 1979, Mintoff (Labor Party) controlled everything. He continued to hold onto power until 1984. To move ahead in almost every position involved knowing someone on the inside.

Thibert: “How are the later years (1970–1984) of Dom Mintoff’s political career viewed through today’s lens? In simplistic terms, is he the hero who saved the country during a tense economic time or is he the villain who nationalized many facets of Maltese life leading to the political corruption, for example, the National Bank Scandal of 1977?”

Professor Cassar: “In Malta, the leader of the party is important while he is in the position. When they are out, they are simply forgotten. Maltese have a habit of only looking at politics now.”

“I am not saying that everyone from either party would not say that Olivier or Mintoff were great men. They would say they were and that’s it. They are too much in the past. We are in 2024. They are the past. They are just names.”

“That is important to remember. In schools, you do not mention politics. We are too much a bi-party country. If you say the wrong thing, people may say that you are pro-Labor or pro-National. To safeguard their jobs and lives, teachers stay clear of modern politics. They stay in the early 20th century, but they stay away from anything modern.”

-Port of Valletta 2023

Meeting in Valletta

I was a bit nervous to meet Arnold Cassola, journalist, former professor, and former head of the Green Party. Our first conversation, while I was in the States, was an onslaught of information about the current state of the country. Meeting him in person made me feel as though it was the first day of school.

Prior to our lunch, I read his latest book, The Marsa Junction Hidden Secrets, to make sure I was up-to-date on what was happening within the country. The book details Turkish businessmen Yorgen Fenech (former head of the Tumas Group and ElectroGas Malta) and Fredrick Azzopardi (cousin of former prime minister Joseph Muscat and the former head of numerous companies including Infrastructure Malta, The Central Link Project, Roadworks in Dingli, Roadworks at Ħal Farruġ and Marsa Junction), as well as various Turkish and Maltese businessmen who shared a number of secret texts and messages via Whatsapp and e-mails given to Mr. Cassola by The Malta Times.

What the book broke down was the level of graft and corruption that is currently active in the country in giving out sweetheart long-term deals to develop bridges, manage ports, and conduct other projects that are unnecessary but given the green light to proceed at inflated budgets.

The name of the book refers to the Infrastructure Marsa Project that was completed in 2021, a 70-million-euro project given to Infrastructure Malta to “cut 79% of travel time and up to 70% of air pollution in the country’s busiest intersection, along the principal route to Southern Malta.” Out of the names behind the project, including Azzopardi, Ian Borg (Transport Minister), Dr. Stefan Zrinzo Azzopardi (Public Works and Planning Minister), and Prime Minister Dr. Robert Abela, only the latter two are not currently or have been embroiled in charges of corruption.

I thought it would be interesting to meet in front of Parliament. I texted him what I was wearing and he did the same. When we finally met, we got right into it. I quickly realized that there was so much more going on and I had barely scratched the surface.

As he shared his memories of Valetta, he turned each story into an example of corruption. First was Valetta itself. He remembered that it was once much quieter and cleaner, more of a community. I asked why it was different after EU membership.

He then explained how it worked for the night clubs and venues that often stayed open late allowing tourists to play loud music into the late night and leave trash out on non-pickup days. Complaints did not work, but numbers did. All you had to do is get friends, family, and associates to use their voting power and purses to sway decisions. This often kept politicians from making decisions that should, according to EU policy, put them in alignment with other member-nations.

As we walked down a corridor, a gentleman in a nice suit stopped to have a conversation with Mr. Cassola. They conversed in Maltese for a few minutes and he re-joined me. “He is one of the wealthiest men in Malta, but he will never vote for the Green Party.” When I asked why, he remarked that to him and many others a vote for the Green Party is a wasted vote. Although it is changing, it is a little late as many young people are leaving because of this very issue. They feel that they have no voice, no real vote. This is a new occurrence.

He shared his memories of Saint Julian’s before the towering structure of Portomaso was put in and with it the yachts of the wealthy that cruised in and out before and after lunch. I later learned that Yorgen Fenech had an office in Portomaso and it was from here many details of the assassination of Daphne Caruana Galizia were organized through his cab driver Melvin Theuma.

After finally finding a place to eat, I remarked that the restaurant does not accept credit cards. Mr. Cassola asked the waitress, “Do you not accept credit cards because the business is now corrupt?” The patrons and waitress went silent as he turned his attention to the menu. I asked him, “How is it corrupt?” He showed me a receipt. He explained that each business is supposed to take a VAT (value added tax) with each purchase. More often than not, what a business will do is ask for payment in cash, void the transaction, and hold onto that cash without paying any tax.

Our lunch was leaving an impression that forced me to look at Malta differently, so much so that later when I read of a historical building being moved for another project, despite a survey stating that it would harm the integrity of the building, I had to e-mail him and ask if this was another example of graft. His response was, “Now you see it.”

- Portomaso Building in the background 2023

The Referendum

I had once assumed that many of Malta’s current issues revolved around joining the E.U.. (May 1, 2004). The working-class southerners in places like Marsaxlokk, many of them belonging to the Labor Party, were dead set against joining due to the limits that would be imposed on them after membership. While in the north, in places like Sliema (former British community) and St. Johns, people are more national and wanted to join for the future of the country and their children to get closer to the UK (until Brexit) and allow their children to have the freedoms their parents did not allow. A sticking point for many nationals is how the freedom of movement is used by migrants who view Malta as a transitory country before moving on.

Since the late 1980s, the National Party had been the leading party. That changed in 1998, when Labor was able to regain its dominant position. After this period, the party started to slowly rebrand throughout the early 2000s into a more central and liberal leaning. This allowed for new freedoms like same-sex marriage, improved liberties, and legalization of marijuana.

The head of many of these reforms was Joseph Muscat—a young new face for a new century. Muscat went on to not only lead the Labor Party but become the prime minister of Malta. During his tenure, he established the golden passport program to bring in revenue for various projects through the purchase of a passport to any foreign agent who could afford one (590,000 to 740,000 EUR) and real estate worth at least 700,000 EUR plus additional donations. Controversial from the beginning, it allowed individuals who, in many cases, never set foot in Malta once to have access to the E.U.. Muscat was later discovered to be connected to the murderer of Daphne Galizia. He stepped down from office on January 13, 2020, after a large public outcry over her death and subsequent connections to many individuals involved in Parliament, law enforcement, and the private sector.

As my time in Malta came to an end, I realized that joining the EU was more about hoping that the Union in its regulation to bring all member countries in line with one another ranging from personal freedoms to laws to create a standard would help end corruption. Instead, many Maltese simply feel ignored.

Conclusion

A few weeks after returning home, I reached back out to Mr. Casola for three final questions. After learning more about the history and politics of the country, finding answers on my own became elusive since I did not have the insight of living or experiencing these events. My questions and his responses are below.

Thibert: “In your opinion, is corruption a phenomenon that seeped into government under Mintoff or was it there prior to his 1971–1984 term?”

Cassola: “Forms of corruption have always existed and will always exist when there are human beings present. That is why we need serious checks and balances. In the post-1977 period, thuggish violence seeped in and the checks and balances were severely weakened.”

Thibert: “Do you believe that after the assassination of Daphne Galizia and the work of journalists such as yourself, people are more comfortable about being vocal about corruption?”

Cassola: “I am not a journalist, but I believe that Daphne’s assassination has had two opposite effects: (1) A few people, including journalists, have become more vocal in their exposure of corruption and (2) the majority of people have become more fearful of expressing their views.”

Thibert: “What do you think is the future of Malta when it comes to government and politics?”

Cassola: “Unfortunately, Prime Minister Robert Abela is proving to be even worse than I thought. He is totally amoral and is more concerned with personal political gains than the common good. He is busy normalizing the corrupt behavior and the nepotism of politicians, as opposed to the natural values of honesty and sincerity. His crazy way of twisting things to suit his personal political agenda is causing an exodus from the country of the morally and ethically sane youth. It is a veritable brain drain for which we will pay a collective price as a country. My hope is that more people will see through this mode of governance and revolt with their vote in the polls.”

-Translated “In memory of the 25 years since Dom Mintoff became leader of the Workers Party”