Malta’s Political Financing: Time for Transparency

In the heart of Valletta, just off Republic Street, the Daphne Caruana Galizia Foundation nestles in a quiet corner. Its mission? To shed light on the dark corners of Malta’s politics, starting with the money that fuels it. The foundation’s latest proposal? A radical overhaul of political financing transparency.

Malta’s political parties are awash with cash, but the source of much of this funding remains a mystery. While parties are required to disclose their donors, the threshold for anonymity is high – €2,000. This means that any donation below this amount can be kept secret, leading to a web of opacity.

Take, for instance, the 2019 local council elections. The Labour Party declared €1.6 million in donations, with just €16,000 coming from identifiable sources. The Nationalist Party, meanwhile, declared €1.1 million, with only €40,000 from identifiable donors. The rest? A black hole of unknown contributors.

The Daphne Caruana Galizia Foundation, named after the journalist murdered in 2017 for her investigative reporting, is calling for a sea change. It proposes lowering the donation threshold for anonymity to €500, and introducing real-time disclosure of political donations. The foundation also wants to extend these rules to cover think tanks, NGOs, and other organisations that engage in political activity.

“Transparency is not just about good governance,” says the foundation’s president, Mario Christodoulou. “It’s about protecting democracy. We need to know who’s influencing our politicians, and how.”

The proposals have met with resistance from some quarters. The Labour Party, for instance, has argued that lowering the donation threshold could lead to an increase in small, anonymous donations, making it harder to track funding.

Yet, there are signs of progress. The Nationalist Party has backed the foundation’s proposals, and the government has hinted at reform. In a recent speech, Prime Minister Robert Abela acknowledged the need for “greater transparency in political financing.”

Meanwhile, the foundation continues to push for change. It’s organising public meetings, engaging with politicians, and rallying support online. Its message is clear: Malta’s political financing needs to come out of the shadows.

“We’re not asking for the impossible,” says Christodoulou. “We’re asking for the necessary. Because democracy isn’t just about voting every few years. It’s about knowing who’s influencing the decisions that shape our lives.”