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Party Financing and Democracy

There’s one MP in the house who has maintained a constant position with regard party financing. In an article appearing in today’s papers Franco Debono reiterates his call for proper regulation of party financing while drawing on international reports that describe how failed regulation leads to “trading in influence”. We publish the article in its entirety here as another Zolabyte with the kind permission of the author. General Franco strikes again!

Some months ago, while being interviewed on public television (Dissett), I had described the issue of political party financing as extremely urgent and a priority. I strongly argued that the issue should be tackled immediately, considering its direct bearing on our country’s democracy. The interviewer had dismissed my claims to urgency, apparently comforted by the fact that the issue was, at the time, being tackled by a parliamentary committee.

Recent events have, since, brought work in that committee to a standstill. Moreover, about 15 years ago and we were, compared to most countries, already late, a report (the Galdes Report, 1995) had been tabled in the House of Representatives but still, to date, nothing has come out of it. Since then, no significant developments have taken place and no concrete measures have been implemented with regard to the issue under discussion.

The issue of party finance is crucial and central to any democracy in this day and age.

As the Council of Europe’s Third European Conference of Specialised Services in the Fight against Corruption, held between September 28-30, 1998, had declared: “…political parties play an essential role in democratic systems.

“Their operation requires appropriate resources while electoral campaigns have become expensive. Faced with increasing expenses, political parties are unable to live only on their members’ fees and have to solicit and accept donations. Trading in influence has, thus, developed. In order to remedy this situation, which is detrimental to the rule of law and democracy, it is necessary to ensure political parties are financed in a wholly transparent manner.”

Political parties are challenged today with complex tasks, including researching and developing relevant and updated policies as well as communicating their message in the best possible manner in order to garner maximum support and win elections. Such tasks necessitate a sound structural organisation and infrastructure, which cannot be put in place and function without adequate financial resources.

The process of securing the necessary funds could lead to abuse. Parties could potentially end up at the mercy of particular donors who may seek to exert control through undue or unlawful influence. Legislation all over the world has been enacted precisely with the aim of averting such jeopardy and limit the dangers to democracy.

Since political parties are not just voluntary organisations accountable solely to their members, but organs of a constitutional nature and relevance, the necessary legislation tackling the most urgent issue of disclosure and public auditing of parties’ finances should be enacted. Strengthening democracy means ensuring political parties are financed in an accountable and transparent manner.

Thus, the Galdes Report, tackles such issues as whether there should be a ceiling on private donations, whether donations exceeding a certain amount should be prohibited and sums exceeding which amount should import a duty of disclosure.

In the United States, disclosure of small amounts by small donors was held by the Supreme Court to potentially seriously infringe on the rights to privacy and association and belief and, thus, one must always strive to strike a balance.

Tackling the issue of eligibility for state financing, linked primarily to the number of votes obtained by a party in the previous general election, the Galdes Report again establishes the requirement of the compulsory publication of financial statements and accounts, as well as disclosure of particular donations, exceeding certain amounts. It proposes strict penalties in cases of default or non-observance, enforced by a regulatory and supervising authority to be established under the same proposed legislation.

The report had, for instance, also tackled the issue of candidates’ expenses during election campaigns, which amount, just under €1,400, 15 years and four elections ago was deemed too low and unrealistic. It was suggested that it should be increased, in addition to proposing a more realistic definition of the relevant period preceding an election. We are still debating this today and nothing concrete has as yet materialised.

This aspect of transparency is important too.

It is time to rethink the structure and internal organisation and set-up of political parties as constitutional vehicles. It is time to think about the relevance of political party stations today. It is a time of great challenges where we must continue to revise and upgrade the constitutional architecture for the future.

As has always happened under successive Nationalist Administrations, we must continue strengthening democracy and this is the next step.

It is time to pass from reports and committees to action and legislation. And we must continue on the good work being done in public broadcasting , upgrading it too.

Dr Debono wrote his doctoral thesis for the law degree on The Constitutional Implications Of Party Organisation And Party Finance (1999).

Website: www.francodebono.info

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Zolabytes is a rubrique on J’accuse – the name is a nod to the original J’accuser (Emile Zola) and a building block of the digital age (byte). Zolabytes is intended to be a collection of guest contributions in the spirit of discussion that has been promoted by J’accuse on the online Maltese political scene for 5 years.

Opinions expressed in zolabyte contributions are those of the author in question. Opinions appearing on zolabytes do not necessarily reflect the editorial line of J’accuse the blog. Accompanying images selected by J’accuse.
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Politics

Return of the JS List

The logo of KPMG.
Image via Wikipedia

Seven months after its original mention in Parliament, Evarist Bartolo has once again brought to the fore the enigmatic “JS List”. Unlike seven months ago we no longer need to speculate as to the meaning of “JS” in the list (our speculations were wrong anyway) since Varist has referred us all to Joe Stellini, the PN’s former treasury. The sleuths at Malta Today (god bless their hard working souls so close to the ferragosto weekend) have followed up on a series of name dropping statements by the former education minister.

I may be tired and packing for a ten day trip along the Rhine that kicks off tomorrow does not augur well for deciphering Evarist Bartolo’s version of the Lost Symbol but if I am not mistaken he is insinuating that huge companies in Tokyo and Copenhagen had more than a hand in the assignation of the BWSC contract (remember that hot potatoe). The name dropping is not on the scale of ENRON style scandal but by Maltese standards it is big. There is an alleged web of intertwined interests that lead to linking the tenderor and the tenderee on the energy contract. There’s more. Bartolo does not shy back from implying that KPMG auditor to many of the parties involved served as a bridge between all the parties and government. And all this to lead to where? it’s not clear Who, What, When, Why or How but the conclusion is that:

“The PN has a system of fundraising where companies win government contracts and donate money to the PN. They are all part of the PN’s JS list,” Bartolo said, referring to the so called list named after former PN treasurer Joe Stellini.

Which is one hell of a whopper. From DimechGate to JS-Gate. Only, as I have been lamenting all the while, we need more tangible proof. We need cases before the Public Services Commission. It’s not a problem that the allegations surface on a newspaper – the newspaper is only attempting to perform its duty as part of the fourth estate – but there must be a follow up using the full strength of our democratic institutions. In a way there was never a shadow of doubt that contractors in various markets benefited from their contacts with the PN and that they performed services or investments in return. We just needed someone to get talking about them as a first step to something more direct being done about it. We do not have a magistratura in Malta as they do in Italy so do not expect a flurry of avvisi di garanzia very soon.

The “mani pulite” that began with Dimech Gate might (and I stress the might) be about to widen up to something big. The biggest problem remains the prevailing culture that will probably read to a shrug of the shoulders and a “no shit sherlock” approach. In the land of the blind the parties supported by major contractors are Kings.

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J'accuse: Stable government and its price

So David Cameron got to move to number 10 after all. With a little help from his new-found friends, Cameron (and Clegg) ushered in an era of “collaborative politics” that promises to combine effective representation with reasoned administration for the greater good of the people. The much-maligned monster that is coalition government settled in and is already working on an Emergency Budget to tackle the continuing ails of the economy (British, European and worldwide). And there we were thinking that pesky third parties would ruin the show.

When the pros and cons of coalition governments are being discussed, the question of stable government always figures as one of primary concern. The fear of government breaking down or collapsing mid-term and of provoking multiple elections over short spans of time have been one of the main arguments against the possibility of coalition governments – that and the ugly duckling of a “kingmaker” party – a minor party able to call the shots on who gets to form a government.

Whenever such considerations are made we are making implied choices between stronger representation and stable government. The implication seems to be that perfect, proportional representation is not conducive to stable government. In a way that is because, given our “black or white” bipartisan all-or-nothing approach, we are automatically suspicious of compromise politics and confidence building. But is our “stable government” system really so perfect after all?

Stable or bust

Speaking to the party faithful at the PN General Council on Friday, minister Tonio Borg reassured those present that “the government will be safeguarding the people’s clear verdict given in the general election two years ago which was for the Nationalist Party to govern the country for five years.” This was Tonio’s summary refusal of the PL thesis of a government hanging onto power by its talons. Forget Auditor General investigations, forget disquisitions on Erskine-May and forget companies with ugly acronyms like BWSC.

It’s all about who is in power for five years. The reverse side of the coin is the same. Look at the fracas in parliament – the yelling, the motions, counter-motions, the childish insults and defences (you’re drunk and she’s pregnant – oh the shame) – it all boils down to one thing and one thing only: the PL wanted so desperately to bring this one seat-majority government crumbling down (on a vote which technically does not do that) and to undermine whatever sense of legitimacy GonziPN still has to govern.

gonzidhondt

When the results of the last election were out, our Bertoon had Gonzi celebrating on a small bucket representing his “relative majority”. A party that garnered less than 50 per cent of the vote in the country would govern, thanks to a constitutional mechanism of seat compensation. Our caption read: “D’hondt worry, we’re happy” – a nod to the D’hondt system of calculation in elections – invented by a Belgian (Belgian? now that’s a sure source for stable governments). The toon was our way of saying “at least someone’s happy”. Sure. GonziPN had every right to be happy as the next legitimate government of the nation, having snatched victory from the jaws of defeat. But was the voter really getting a good deal in constitutional and representative terms?

The cost of ‘stable government’

Two years ago a party that had a 1,500 vote advantage over the next party that had failed to get to the 50 per cent threshold could claim two extra seats in “constitutional compensation”. Those two extra seats (voting value approximately 7,000) are given to the party with the relative majority in order to ensure that it can govern for the next five or so years – assuming that all the members on its side of the House will vote in its favour.

So we have constructed our “stable government” around a fictive majority that in effect exercises something akin to absolute legislative power in parliament. If government wills it, anything becomes law – unless its bench members decide (knowingly or out of fatigue) to vote against it. The Opposition may – rightly or wrongly – yell, cry, perform its least flattering resurrection of 80’s parliamentary thuggery, walk out in indignation and shout “foul” to an angry nation. It may do all that and more but, barring a revolution, the government is as firmly in place as a limpet – crisis averted, n’est-ce pas?

There is no coalition partner forced upon a party that has not obtained the majority of national votes. No coalition partner to act as a moderator of the more radical of the government policies that might only have enjoyed the favour of a national minority (relative majority it well may be, but it is still a government by national minority). The closest we can get to the coalition partner scenario is in the infamous “rebel backbenchers” picture where, for reasons that can be highly volatile (not as clear as those of an elected coalition partner), a fraction of the party in government decides to make use of his newfound disproportionate weight.

I don’t know about you but if that’s stability, then give me instability any day. Not that I would want instability, but this kind of conundrum really makes the examination of an alternative scenario with coalition partner worth revisiting. AD chairman Mike Briguglio wrote of the current state of affairs in an article that also appeared in J’accuse (Symbol of a Stagnated Duopoly). At one point Mike suggests that the Nationalist Party might even pull off a victory at the next general election. What then?

Mike wrote: “The Nationalists can save their day if the economy recovers, yet, if in government alone, in the next election, we can only expect more arrogance, disregard for the environment, confessional politics and a lack of civil liberties and social rights.” The “if in government alone” bit did not escape me. It is obvious that AD of all parties would entertain thoughts of coalitions in Clegg style and Briguglio’s message is clear – if the Nationalists were to be part of the next government it would best be with a check and balance system guaranteed by a coalition partner.

bert4j_100516
Cleggmania?

The problem in Malta is that voters will weigh this option with the usual suspicion. Elections are depicted as an all or nothing battle themselves. The rules are such that – as I have shown – the trophy of governance is intricately merged with the trophy of absolute power at all costs. Even in such telling times as these, when the bipartisan representation exposes all its ugly warts, messengers like Briguglio will find it incredibly hard to sell the idea of a different form of “collaborative government” that has just been launched in the UK. Selling the idea might not be enough – without electoral reform, laws on party financing and a clear awareness among the voting population, we are far, very far, from being anywhere near the kind of movement that brought the UK Cleggmania.

Meanwhile the BWSC saga with all the parliamentary repercussions rolls on. Joseph Muscat of the Same, Same but Different Party has just presented his 15 points to battle corruption. The monster, once defined, failed to bring the PN government down. So now Don Quixote invents a few swords and sabres and bandies them about. We shall see how gullible the voters can be by the way they accept this new set of “promises”. In our analysis of the 15 points on the blog we point out (among other things) that:

(a) promising a working electricity system is just the mediocre kind of electoral gimmick you can expect from our bipartisan stable system in the 21st century; (b) you cannot fight corruption if you are unable to define it legally; (c) there is no such thing as retroactive application of criminal law; (d) when Joseph Muscat promises to implement a directive he is stating the obvious – he will have to implement directives when in government whether he likes it or not; and (e) a law on party financing must not be limited to “corruption” whatever that means – transparency means knowing even what are the “legitimate” sources of party funds.

Somebody stabilise that euro

I know it’s egoistic of me but I have begun to notice that ever since I booked a June trip to New York, there seems to be a general conspiracy to threaten my holiday. As if Iceland’s bucolic volcano and its random outbursts of paralytic ash were not enough, the combined effect of Greek woes and economic disaster on the continent have daily gnawed away at the purchasing power of the beloved euro, once I cross the pond to the other side. Also, if you please, those bigoted maniacs that fabricate religious excuses at the same rate as they strap bombs to their chests have upped the ante once again in the city that never sleeps.

Conspiracy or no conspiracy, I have “New York or Burst” (as Balki Bartokamous would have it) tattooed on my brain. No volcano, euro devaluation or fanatic terrorist will come between me and the joys of the 24-hour Apple Store on Fifth Avenue – open 24/365… beat that GRTU! How’s that for stable determination?

www.akkuza.com has been on a go-slow this Ascension Long Weekend in Luxembourg. We’ll be discussing stable governments all next week so do not miss out on the action.

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What Goes Around Comes Around (at least 1/410.6 does)

solounasanaeconsapevolelibidine....

A funny thing happened in the news today. This morning the Times was informing us of the PLPN’s respective takings in the farcical “donations” to the needy parties race. This evening the magnanimous dudes at Triq Herbert Ganado relished a photo op while donating €1,000 from the record sales of the book about former “lijder” Eddie Fenech Adami to the Community Chest Fund. Apparently all copies of the book Inservi were sold out and PiN is expecting a new print run soon. It would have been a lovely piece of photo op  info for Paul BO and the rest of the gang at the Christian Democrat Business Enterprise were it not for the fact that the news of a €1,000 “donation” to the Community Chest Fund inevitably jars with the €410,625 received by the Nationalist Business Enterprise in (untaxable) donation from the party faithful in the phone-a-thon on Sunday.

Essentially 1 in every 410 euros donated to the PN went to the Community Chest fund. A bit better than the Italian otto per mille don’t you think?

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Politics

Christmas Party Hampers (declared)

Everybody wants a nice donation
Everybody wants a nice donation

In which J’accuse provides the commentary on the annual charade of Christmas donations to the Nationalist and Labour parties.