 IMEX Malta |
IMEX Malta - It's a personal service. The Gateway to Europe. |
 | 
|
Corruption Perception in Malta: A Growing Concern
Last changed: July 26 2024 10:12
A recent Eurobarometer survey reveals a troubling increase in the perception of corruption in Malta, with 95% of respondents believing that corruption is widespread in the country. This figure marks an increase from 92% in 2023. The survey highlights that one in four people in Malta personally knows someone who has taken or accepted a bribe. Additionally, a quarter of the population feels that "everyone knows about these cases and no one reports them."
Reasons for Underreporting
The primary reason cited for not reporting corruption is a pervasive belief that doing so would be pointless, as those involved are unlikely to face consequences. This sentiment reflects a broader skepticism about the effectiveness of anti-corruption measures.
European Context
Across the European Union, 10% of citizens personally know someone who has accepted bribes. Malta ranks second in this regard with 26%, only behind Greece at 32%. Lithuania and Latvia follow at 23% and 22%, respectively. On the other hand, Ireland (4%), Italy (5%), and Romania (6%) report the lowest percentages of personal acquaintance with bribery.
Malta also leads in terms of fear of repercussions for reporting corruption, with 35% of respondents expressing such concerns. Lithuania follows at 33%, while Greece and Cyprus are both at 26%.
Lack of Action Against High-Level Corruption
A significant 79% of Maltese respondents feel that high-level corruption cases are not pursued with sufficient vigor. When asked whom they would trust most to handle a corruption report, 59% indicated the police, followed by the national ombudsman (21%) and journalists (14%).
Broader European Perceptions
The Eurobarometer report, titled *Citizens’ Attitudes Towards Corruption in the EU in 2024*, surveys attitudes across 27 EU countries. Conducted with 26,000 participants between February and March of this year, the findings depict a bleak picture of Europe, where 68% of citizens believe corruption is prevalent in their respective countries.
The Situation in Malta
In Malta, the perception of corruption has intensified, with 95% of citizens acknowledging its widespread nature. While 70% of Maltese believe that corruption levels have increased over the past three years, 23% think it has remained unchanged.
Bribery is perceived as most prevalent within political parties (73%), followed by the issuance of building permits (67%), and among national and local politicians (63%). Conversely, the education sector (20%), banks and financial institutions (26%), and private companies (27%) are seen as less corrupt.
A significant 56% of Maltese people feel that corruption impacts their daily lives, compared to the EU average of 27%. The majority believe it is unacceptable to offer favors, gifts (82%), or money (84%) to achieve personal goals.
Furthermore, 88% of Maltese respondents believe that close ties between business and politics foster corruption, and 80% think that favoritism and corruption stifle business competition. Over half (54%) assert that political connections are essential for business success.
Additional Insights
Historical Context of Corruption in Malta
Malta has long struggled with corruption, particularly concerning land development, public procurement, and political patronage. These issues have been exacerbated by a lack of transparency and accountability in public administration. The Panama Papers scandal in 2016, which implicated several high-ranking Maltese officials, underscored the deep-rooted nature of these problems.
Efforts to Combat Corruption
The Maltese government has taken some steps to address corruption, such as implementing legislative reforms and establishing anti-corruption bodies. However, these efforts are often criticized for being insufficient or lacking enforcement. Calls for stronger whistleblower protections and more independent investigative agencies continue to grow.
Economic Impact of Corruption in Malta
Corruption has a profound impact on the Maltese economy, affecting various sectors and the overall business environment. Here are some of the key ways corruption impacts the economy:
1. Reduced Foreign Investment
Corruption undermines investor confidence and deters foreign investment, which is crucial for a small economy like Malta. Investors often seek stable and transparent environments, and perceptions of widespread corruption can lead to hesitation or outright avoidance. This reluctance affects economic growth and job creation, limiting Malta’s ability to compete globally.
2. Increased Costs for Businesses
Corruption introduces inefficiencies in the marketplace, leading to increased operational costs for businesses. Companies may be forced to pay bribes to obtain permits, secure contracts, or navigate regulatory processes, which adds to their expenses. These additional costs can discourage entrepreneurship and innovation, stifling economic progress.
3. Distorted Market Competition
When corruption is prevalent, market competition becomes distorted. Businesses that engage in corrupt practices can gain unfair advantages, such as preferential treatment in government contracts or expedited services. This undermines fair competition and can lead to monopolistic or oligopolistic market conditions, reducing overall economic efficiency.
4. Impact on Public Resources
Corruption often results in the misallocation of public resources, with funds being siphoned off for personal gain rather than being invested in infrastructure, healthcare, education, and other public services. This misallocation diminishes the quality of public goods and services, impacting the broader population and hindering social and economic development.
5. Erosion of Trust in Institutions
High levels of corruption erode trust in public institutions and governance, leading to a lack of public confidence in government initiatives and policies. This erosion of trust can have long-term implications for social cohesion and political stability, further impacting the economic environment.
6. Hampering Innovation and Growth
Corruption can stifle innovation by creating an environment where businesses focus on navigating corrupt systems rather than investing in research and development. This focus diverts resources away from innovation and growth-oriented activities, limiting Malta’s potential to become a leader in emerging industries.
Public Opinion on Reforms
Public opinion in Malta reflects a strong desire for more effective anti-corruption reforms. While there have been efforts to address corruption, many Maltese citizens feel that these measures have been insufficient and that significant changes are needed to restore public trust and ensure accountability. Here are some insights into public sentiment regarding reforms:
1. Support for Stronger Whistleblower Protections
Many Maltese citizens advocate for stronger whistleblower protections to encourage the reporting of corruption without fear of retaliation. The lack of such protections is seen as a barrier to transparency, as individuals are often hesitant to come forward with information about corrupt practices.
2. Demand for Independent Investigative Bodies
There is widespread support for the establishment of independent investigative bodies that can operate without political interference. Such bodies are viewed as essential for conducting impartial investigations and holding those responsible for corruption accountable.
3. Calls for Greater Transparency in Government
Public opinion strongly favors increased transparency in government operations, particularly in areas such as public procurement and political party financing. Citizens believe that transparency is crucial for preventing corruption and ensuring that public funds are used appropriately.
4. Desire for Judicial Reforms
There is a significant call for judicial reforms to ensure that the legal system can effectively prosecute and punish corruption cases. Many Maltese feel that the current judicial framework is inadequate for addressing high-level corruption and that reforms are necessary to enhance its effectiveness.
5. Increased Civic Engagement and Activism
Rising dissatisfaction with corruption has led to increased civic engagement and activism. Many citizens are participating in public demonstrations and advocacy campaigns to push for reforms and hold the government accountable for its actions.
6. Public Pressure on Political Parties
Political parties in Malta face growing pressure from the public to prioritize anti-corruption measures in their platforms. Citizens are increasingly evaluating candidates based on their commitment to transparency and accountability, influencing electoral outcomes and political priorities.
Conclusion
Addressing corruption is crucial for Malta to improve its economic prospects and enhance the quality of life for its citizens. Strengthening anti-corruption measures, improving transparency, and fostering a culture of accountability are essential steps in rebuilding trust and ensuring sustainable economic development. Public opinion strongly supports these reforms, highlighting the urgent need for decisive action to combat corruption in Malta.
Contact IMEX Malta
