The Malta Chamber On Alleged Identity Card Scandal

The Malta Chamber of Commerce, Enterprise, and Industry has criticized the government for “gross mismanagement and failure in upholding good governance” in response to the alleged identity card scandal. It emphasized that the effects of this alleged racket will reach far beyond the public sector, hurting ethical businesses too.

“Businesses rely on official documentation, such as ID cards, for their proper functioning, and management of commercial risk. The lack of good governance has slid to abysmal level, resulting in ethical companies being faced with higher commercial risk arising from uncertainty on the veracity of official documents. This situation exemplifies the damaging consequences of poor governance, leaving businesses vulnerable to repercussions from government negligence,” the Malta Chamber said in an official statement.

“Moreover, The Malta Chamber is alarmed by the blurring of lines between Government, civil service and the political party in power. This lack of crucial separation leads to the collapse of democracy. The lack of transparency in employment contracts, unclear procedures for handling high-ranking officials under investigation, and the frequent turnover of CEOs and Chairpersons within public institutions further destabilize these entities and undermine public trust.”

The Chamber, which is considered the voice of the private sector, stated that principles that maintain Malta’s reputation as a credible jurisdiction, like good governance, transparency, accountability, and the separation of Government, civil service, and political parties are being eroded by this alleged racket. It warned that these failures could be “devastating” for Malta’s international reputation, business environment and public confidence.

“The lack of trust in critical systems signals a deeper crisis in governance that threatens the nation’s security and stability.”

The chamber went on to reference two documents it had preciously issued which emphasized the importance of good governance and provided recommendations to protect institutional integrity.

“Unfortunately, these recommendations have largely been ignored, as evidenced by the continuing governance breakdowns.”

It closed off its statement by demanding immediate state action to restore good governance.

“This includes ensuring transparency in all appointments and processes, addressing the blurring of lines between Government, civil service and the political party in power, and also rebuilding the public’s trust in Malta’s institutions. Without urgent reforms, the nation risks further damage to its reputation and undermining the foundations of its success.”

Last week, lawyer and former MP Jason Azzopardi filed a court application requesting a magisterial inquiry into an alleged €60 million identity fraud racket involving Identity Malta.

Azzopardi claims under oath that thousands of fraudulent identity cards have been issued to third-country nationals, potentially undermining Malta’s immigration system and the integrity of European Union residency rights.

The allegations paint a picture of an operation involving illicit financial transactions, high-level political involvement, and a series of clandestine activities designed to exploit Malta’s position within the EU.

The racket is alleged to have started operating in 2015, with approximately 18,000 false Maltese identity cards issued to individuals primarily from Egypt and Libya. Each document was allegedly sold for prices ranging from €2,000 to €8,000, generating an estimated €60 million for those involved.

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