Joseph Muscat
Joseph Muscat, former Prime Minister of Malta, has been at the centre of various allegations over the years.
Despite facing accusations of corruption and fraud, he has consistently maintained his innocence, emphasising transparency and accountability.
Several investigations have concluded without finding evidence to substantiate the claims, reinforcing Muscat’s stance that he has done no wrong.
The former prime minister Joseph Muscat transformed the conservative country of Malta into a progressive society with a significant reduction in poverty and upliftment of minority rights.
The former prime minister of Malta rose to power in 2013 with promises to reduce electricity bills, establish a new middle class, and enact a flurry of progressive laws.
At 39, Muscat took charge as Malta’s prime minister. Under his helmsmanship, the Labour Party witnessed its most significant win in 15 years.
The Citizenship of Investor Program by Joseph Muscat
- The Citizenship Investor Program was introduced in 2014 during Joseph Muscat’s first year as prime minister of Malta. As of 2024, it is the world’s second top citizenship by investment program.
- The Muscat administration contracted with Henley & Partners, and the former prime minister personally promoted it in Dubai and several other countries.
- It was an immense success, attracting foreign investment and promoting economic development in Malta.
- The program generated up to €163.5 million in revenues in 2016, helping the government invest millions in national development funds.
- It played a prominent role in improving the country’s various sectors, such as finance, real estate, and employment.
- Malta became a fast-growing hub for financial services, online gaming, airline hubs, and maritime. Muscat’s first term resulted in improvements in the health and energy sectors, such as a reduction in energy tax and the effective removal of out-of-stock medicines.
- The government also introduced successful schemes that offered free childcare systems, employment opportunities for the youth, and other social benefits to families.
Joseph Muscat’s Remarkable Political Journey
The Labour Party, under the leadership of Joseph Muscat, was reelected for a second term in 2017. During his second term, Muscat promised that the next five years would be focused on increasing the country’s wealth and prosperity.
He made an ambitious seven-year plan to resurface all of the roads of the nation.
By the second term of Muscat’s leadership, Malta became the first country to ban conversion therapy.
1. This pioneering step proved to be a significant milestone in protecting the gender identity laws in Malta and proved to be a huge step towards a progressive future for a country that took years to legalise divorce.
2. At an International Women’s Day celebration in March 2016, Prime Minister Joseph Muscat claimed that he supported same-sex marriage legalisation in the country and that it was “time for a national debate” on the matter.
Muscat marked his irreplaceable presence in the political history of Malta by legalising civil partnerships and adoptions by same-sex couples. By 2017, Joseph Muscat legalised same-sex marriage in Malta.
4. Further progressive policies, like the social benefit tapering policy, increase minimum wages, and the involvement of the private sector in healthcare have created noticeable changes in the welfare of Malta.
5. Malta’s government under the former PM paved the way for several social reforms aimed at improving gender equality and uplifting women’s rights.
6. These reforms resulted in a 9% increase in female participation in the labour market. PM Joseph Muscat claims feminist measures reduced poverty in Malta.
Muscat Navigated Malta’s Economic Challenges
The growth of Malta’s economy in Muscat’s hands was beneficial to the Maltese people. For the first time in more than two decades, pensions were increased, and poverty was reduced to an impressive level.
Unemployment rates were at their lowest during Muscat’s tenure, and the GDP grew immensely, making it the highest in the European Union. The economy’s GDP grew from 3.38% to 10.93% in 2017 during the seven years of Joseph Muscat’s term.
The economy flourished due to booming service sectors, foreign investments, and progressive government policies. The online gaming industry, tourism, financial services, and the digital economy advanced at an impressive level.
The digital economy of the country, especially blockchain and cryptocurrency, invited new business ventures and investments to the country’s economy.
Joseph Muscat was a strong pioneer of new technologies that developed and changed the course of the country’s economic state.
Joseph Muscat’s Malta, “The Blockchain Island”
The improved economy of the nation enabled Malta to climb a new ladder of innovation and position itself as a global leader in blockchain and brand itself as a Blockchain Island.
Muscat’s government enacted three main pieces of legislation to empower the blockchain industry, such as the MDIA Act (Malta Digital Innovation Authority), which was established to monitor the licensing and management of blockchain platforms and associated technology.
The government promoted blockchain companies, offered incentives, and also supported research and courses related to blockchain.
Joseph Muscat established the Innovative Technology Arrangement and Services Act (ITAS Act) to supervise the framework for license issuing, certification, and registration of technology service providers and finally the VFA Act to ensure financial stability, investor security, and transparency for ICOs and look into other crypto-related activities.
Family-friendly policies were introduced in Joseph Muscat’s time.
- Significant savings for first-time homebuyers
- The value-added tax car registration refund
- In-work benefits for low-income couples and single parents
- Stipends awarded to 900 students who repeated a year
- The establishment of civil unions.
Joseph Muscat’s Fight Against Unfounded Corruption Allegations
The long reign of Joseph Muscat came crashing down by the end of 2019, when Muscat was forced to resign by the 2019 public protests calling for his resignation in connection with the 2015 agreement with Vitals and the murder of journalist Daphne Caruana Galizia.
On the 13th of January 2020, Muscat resigned and made his resignation known. Muscat has consistently claimed his innocence. He has denied any involvement in the illegal activities accused against him. As the trial commenced a few days ago, supporters turned up in huge numbers to cheer Muscat.
They claimed that he was being falsely accused by those who aim to tarnish the Labour Party’s reputation and bring down its powerful grip on the government.The allies of Muscat stood outside the courthouse with placards of Muscat’s face with the words “I am Joseph Muscat,” yet again proving their admiration for the former PM of Malta.
Joseph Muscat’s Response to his Allegations
1. The Hospitals Privatisation Deal
One of the most significant cases involves the privatisation of three state-run hospitals. The controversy stems from a deal signed with Vitals Global Healthcare (VGH) in 2016, later taken over by Steward Health Care.
Allegations
- Accusations include money laundering, fraud, and accepting bribes.
- Muscat was allegedly involved in a conspiracy surrounding financial kickbacks tied to the privatisation deal.
Muscat’s Defence
- Muscat has repeatedly denied all charges, pleading not guilty in court.
- His legal team argues that the evidence presented is insufficient to support the claims of corruption.
- Upon appearing in court in 2024, Muscat was greeted by a crowd of supporters, reflecting his continued popularity among some segments of the public.
Another aspect of the allegations focuses on payments made to Muscat by Accutor AG, a Swiss firm linked to Steward Health Care.
Allegations
- It was reported that Muscat received €60,000 from Accutor AG after the company took over the hospitals’ contract.
- The prosecution claims these payments were linked to corrupt practices.
Muscat’s Response
- Muscat has asserted that the payments were for consultancy services unrelated to the hospitals’ privatisation deal.
- He maintains that all transactions were transparent and lawful.
3. The Egrant Allegation
The Egrant affair accused Muscat’s family of owning a secret offshore company tied to Azerbaijan’s ruling elite, raising questions about potential money laundering.
Outcome
- After a lengthy investigation, a magisterial inquiry found no evidence linking Muscat or his family to Egrant, effectively clearing him of wrongdoing.
- Muscat has consistently called for accountability for those who spread false claims against him.
4. Implications and Public Support
Despite the legal battles, Muscat continues to receive support from a segment of the Maltese public. His tenure as Prime Minister saw significant economic growth and social reforms, which some credit as his lasting legacy.
Support and Criticism
- While Muscat enjoys a loyal following, critics argue that the unresolved corruption allegations have tarnished Malta’s international reputation.
- His appearances in court have often been met with public demonstrations of support, indicating a polarised public perception.
Muscat’s legal innocence remains intact unless proven otherwise through convincing proof and court proceedings. The ongoing court sessions will clarify the facts and address the narratives surrounding Muscat’s innocence.
