The racket exposed at Identita is the latest example of “gross mismanagement and failure to uphold good governance”, the Chamber of Commerce said in a statement.

The allegations made against the government agency responsible for citizens’ identity management and the implementation of migration processes reflect “a complete breakdown in the distinction between government, civil service and political party in power,” the Chamber said.

Saying the situation was proving challenging in terms of Malta’s reputation as a credible jurisdiction, The Chamber said it was deeply concerned about the impact of such failures on businesses and investment.

“Government’s silence on this issue raises suspicions about the severity of the scandal and its potential to severely damage Malta’s international standing,” The Chamber said.

It stressed the identity card scandal was a symptom of broader governance failures, adding that the fallout from these failures in governance was not only affecting the public sector, but also impacting ethical businesses.

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 levels, resulting in ethical companies being faced with higher commercial risk arising from uncertainty on the veracity of official documents,” the Chamber said, stressing that poor governance was leaving businesses vulnerable to repercussions from government negligence.

The statement warned of the impact that the blurring of lines between government, civil service, and the political party in power was having on businesses.

“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 destabilise these entities and undermine public trust.”

The Malta Chamber warned that the long-term implications of these governance 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.

“At this crucial juncture, The Malta Chamber demands immediate government action to restore good governance. This includes ensuring transparency in all appointments and processes… and 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.”