Political Finance Database

Section 3(1) & 2 Foreign Interference Act 1982

D3. (1) Subject  to  the  provisions  of  this  Act,  it  shall  not  be lawful for an alien to perform, do, hold, take part in, aid or abet, or allow, any restricted activity in Malta.
(2) For the purposes of this Act, "a restricted activity" means - (a) any  activity,  or  participation  in  any  activity,  of  a political  nature  or  having  a  political  purpose  at  any time during the period commencing nine months prior to the date on which Parliament would, unless sooner dissolved, stand dissolved by virtue of article 76(2) of the Constitution and the date of the publication of the results  of  an  election,  or  at  any  time  between  the dissolution of Parliament according to article 76(1) of the Constitution and the date of the publication of the results of an election;
(b)  the  provision  at  any  time  to  or  for  the  benefit  of  a political  party,  person,  club  or  similar  institution, whether directly or through an intermediary agent, of any money, equipment or other material, by way of gift or  otherwise  not  against  equivalent  valuable consideration, excluding books and other publications intended  for  sale  or  distribution  not  exclusively  or mainly for Malta, unless such provision is authorised by the Monitoring Committee in accordance with this Act.

Section 3(1) & 2 Foreign Interference Act 1982

D3. (1) Subject  to  the  provisions  of  this  Act,  it  shall  not  be lawful for an alien to perform, do, hold, take part in, aid or abet, or allow, any restricted activity in Malta.
(2) For the purposes of this Act, "a restricted activity" means - (a) any  activity,  or  participation  in  any  activity,  of  a political  nature  or  having  a  political  purpose  at  any time during the period commencing nine months prior to the date on which Parliament would, unless sooner dissolved, stand dissolved by virtue of article 76(2) of the Constitution and the date of the publication of the results  of  an  election,  or  at  any  time  between  the dissolution of Parliament according to article 76(1) of the Constitution and the date of the publication of the results of an election;
(b)  the  provision  at  any  time  to  or  for  the  benefit  of  a political  party,  person,  club  or  similar  institution, whether directly or through an intermediary agent, of any money, equipment or other material, by way of gift or  otherwise  not  against  equivalent  valuable consideration, excluding books and other publications intended  for  sale  or  distribution  not  exclusively  or mainly for Malta, unless such provision is authorised by the Monitoring Committee in accordance with this Act.

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:

(c) given anonymously.

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:

(c) given anonymously.

P.3 'The authorities of Malta now inform that the following rules, which are identical for parties and independent election candidates, are included in the FPPA. All anonymous donations are forbidden.' (Source: GRECO (October 2015) SecondInterim Compliance Report on Malta:'Transparency of Party Funding')

PART IV, Political parties shall not receive donations:

(a) which are evidently made in the expectation of, or in
return for, some specific financial or political
advantage; and, or
(b) from any public corporation or any parastatal body,
company, or entity in which the State has a controlling
interest:

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:(e) in excess of twenty-five thousand euro (€25,000) during one calendar year from the same source:
Provided that for the purposes of this paragraph companies forming part of the same group of companies or which directly or indirectly are controlled by each other or by the same person or group of persons, shall be considered as a single source.

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:(e) in excess of twenty-five thousand euro (€25,000) during one calendar year from the same source:
Provided that for the purposes of this paragraph companies forming part of the same group of companies or which directly or indirectly are controlled by each other or by the same person or group of persons, shall be considered as a single source.

PART IV (35), Financing of Political Parties Act, 2015, ammended in 2016

35. (1) The value of any donation in the form of a gift to the Value of donation.
political party, other than money, shall be taken to be the cost price
to the donor of the gift or property in question.
(2) Where, however, any gift to the political party, is such that:
(a) any money or other property is transferred to the
political party, pursuant to any transaction or
arrangement involving the provision by or on behalf of
the political party, of any property, services or
facilities or other consideration of monetary value; and

(b) the total value in monetary terms of the consideration
so provided by or on behalf of the political party, is
less than the amount transferred to the political party
14 [CAP. 544. FINANCING OF POLITICAL PARTIES
or, as the case may be, the cost to the transferor of the
property transferred, the value of the donation shall be
taken to be the difference between:
(i) the amount of money or cost to the transferor of
the property in question; and
(ii) the total value in monetary terms of the
consideration provided by or on behalf of the
political party.
(3) The value of any donation or services made by way of any
sponsorship provided in relation to the political party shall be taken
to be the amount of the money or, as the case may be, the cost to the
donor of the property transferred as a donation; and accordingly
any value in monetary terms of any benefit conferred on the person
providing the sponsorship in question shall be disregarded.
(4) The value of any donation consisting of the provision,
otherwise than on commercial terms, of any property, services,
loans or facilities for the use or benefit of the political party, shall
be taken to be the amount representing the difference between:
(a) the total value in monetary terms of the cost to the
donor in respect of the provision of the property,
services or facilities; and
(b) the total value in monetary terms of the consideration,
if any, actually so provided by or on behalf of the
political party.

PART IV (35), Financing of Political Parties Act, 2015, ammended in 2016

35. (1) The value of any donation in the form of a gift to the Value of donation.
political party, other than money, shall be taken to be the cost price
to the donor of the gift or property in question.
(2) Where, however, any gift to the political party, is such that:
(a) any money or other property is transferred to the
political party, pursuant to any transaction or
arrangement involving the provision by or on behalf of
the political party, of any property, services or
facilities or other consideration of monetary value; and

(b) the total value in monetary terms of the consideration
so provided by or on behalf of the political party, is
less than the amount transferred to the political party
or, as the case may be, the cost to the transferor of the
property transferred, the value of the donation shall be
taken to be the difference between:
(i) the amount of money or cost to the transferor of
the property in question; and
(ii) the total value in monetary terms of the
consideration provided by or on behalf of the
political party.
(3) The value of any donation or services made by way of any
sponsorship provided in relation to the political party shall be taken
to be the amount of the money or, as the case may be, the cost to the
donor of the property transferred as a donation; and accordingly
any value in monetary terms of any benefit conferred on the person
providing the sponsorship in question shall be disregarded.
(4) The value of any donation consisting of the provision,
otherwise than on commercial terms, of any property, services,
loans or facilities for the use or benefit of the political party, shall
be taken to be the amount representing the difference between:
(a) the total value in monetary terms of the cost to the
donor in respect of the provision of the property,
services or facilities; and
(b) the total value in monetary terms of the consideration,
if any, actually so provided by or on behalf of the
political party.

P.3 'The authorities of Malta now inform that the following rules, which are identical for parties and independent election candidates, are included in the FPPA.' (Source: GRECO (October 2015) SecondInterim Compliance Report on Malta:'Transparency of Party Funding')

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:

(f) consisting of a loan on more favourable terms than
ordinary commercial terms at the time when the loan
was made, where the interest in respect of a period of
twelve months which would have been payable by the
political party had the loan been taken on ordinary
commercial terms would have exceeded the interest
actually owed for the same period by the political
party to the person making the loan by an amount in
excess of twenty-five thousand euro (€25,000);

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:

(f) consisting of a loan on more favourable terms than
ordinary commercial terms at the time when the loan
was made, where the interest in respect of a period of
twelve months which would have been payable by the
political party had the loan been taken on ordinary
commercial terms would have exceeded the interest
actually owed for the same period by the political
party to the person making the loan by an amount in
excess of twenty-five thousand euro (€25,000);

P.3 'The authorities of Malta now inform that the following rules, which are identical for parties and independent election candidates, are included in the FPPA.' (Source: GRECO (October 2015) SecondInterim Compliance Report on Malta:'Transparency of Party Funding')

PART IV (34), Financing of Political Parties Act, 2015, ammended in 2016

34. Political parties shall not receive donations:
(b) from any public corporation or any parastatal body,
company, or entity in which the State has a controlling
interest:

Provided that political parties shall be permitted to
receive services from State sources only under a
special law which shall regulate:
(i) assistance in kind (such as air-time, access to
means of communication and related matters);
(ii) the proportions on the basis of which such
assistance is to be provided to different political
parties; and
(iii) the timing of the assistance given before
elections, after elections, during the European
Parliament election period, the Local Council
election period, the general election period and
during referendum campaigns;

'Similarly, in Malta, the Broadcasting Authority organises schemes of political broadcasts during electoral campaigns and grants access to these schemes to all political parties and independent candidates contesting the general elections. A judgement of the Constitutional Court of the 31 July 1996 has held that this provision would be incompatible with the Constitution if it were to be interpreted in a manner that completely excludes access to these political broadcasts to parties not represented in Parliament. A 1971 Court of Appeal decision affirmed that in apportioning participation in such schemes of electoral broadcasts between political parties the Broadcasting Authority had an obligation to take account of the size of the parties.' (p. 2) (Source: EPRA (2000) Political Communication on Television Matters for debate, EPRA, Paris. Available at http://www.epra.org/content/english/press/back.html)

'Similarly, in Malta, the Broadcasting Authority organises schemes of political broadcasts during electoral campaigns and grants access to these schemes to all political parties and independent candidates contesting the general elections. A judgement of the Constitutional Court of the 31 July 1996 has held that this provision would be incompatible with the Constitution if it were to be interpreted in a manner that completely excludes access to these political broadcasts to parties not represented in Parliament. A 1971 Court of Appeal decision affirmed that in apportioning participation in such schemes of electoral broadcasts between political parties the Broadcasting Authority had an obligation to take account of the size of the parties.' (p. 2) (Source: EPRA (2000) Political Communication on Television Matters for debate, EPRA, Paris. Available at http://www.epra.org/content/english/press/back.html)

'Another activity from which political parties indirectly benefit is theholding of political debates and political spots on national television or private television stations.Article 13(4) of the Broadcasting Act (chapter 350 of the Laws of Malta) stipulates that it is a dutyof the broadcasting authority to organise from time to time schemes of political broadcasts(including political spots) which fairly apportion facilities and time between the different politicalparties represented in Parliament. In order to fulfil its duty, the authority has the right to order anyperson providing broadcasting services in Malta for reception in Malta to provide, free of charge,the recording and other facilities necessary for the production of the programmes for radio andtelevision, as well as to transmit, free of charge, on days and at times to be decided by theauthority, the same programmes provided that this exercise is reasonably justifiable in ademocratic society. The parties are also able to broadcast via their own terrestrial channels,meaning that they do not need to rely on purchasing broadcasting time from other providers' (p. 7) (Source: GRECO (2009) Evaluation Report on Malta on Transparency of Party Funding (Theme II))

'Political parties benefit, however, from indirect public funding in the form of tax exemption and media access. The law also provides for a fiscal exemption applying to political parties. Article 12(1)(f) of the Income Tax Act (Chapter 123 of the Laws of Malta) stipulates that the income of any political party, including the income of clubs adhering to political parties are exempt from taxation. A second tax exemption is provided by the Value Added Tax Act (Chapter 406 of the Laws of Malta) i.e. that non-profit making organisations, such as political parties, are exempt from Value Added Tax for the supply of services for the benefit of their members in return for a subscription fixed in accordance with their rules.' (p. 7) (Source: GRECO (2009) Evaluation Report on Malta on Transparency of Party Funding (Theme II))

General Elections Law, No.​ 354, 1991, amended 2015

Art. 56: The following persons shall be deemed guilty of the offence of bribery: [.‌.‌.‌] every person who, directly or indirectly, by himself or by any other person on his behalf, gives, lends or agrees to give or lend, or offers, promises or promises to procure, or to endeavour to procure, any money or valuable consideration to or for any voter, or to or for any person on behalf of any voter, or to or for any other person, in order to induce any voter to vote or refrain from voting, or corruptly does any such act as aforesaid on account of such voter having voted or refrained from voting at any election under this Ordinance;

Article 49: ' 49. Article 46 of the Electoral (Polling) Ordinance included in the Fourteenth Schedule to the General Elections Act shall be substituted by the following new article: '46. (1) The maximum sum paid and, or expenses incurred by or on behalf of a candidate at an election of members of the House of Representatives, and, or by his election agent, whether before, during, or after an election on account of or in respect of the conduct of such election, shall not exceed the sum of twenty thousand euro (?20,000) from every electoral district: Provided that a candidate contesting two electoral districts shall not be obliged to spend the total amount of permissible campaign expenditure as aforesaid, equally between the two districts but may apportion the said permissible campaign expenditure between the two districts in such a manner as the candidate deems fit: Provided further that in the computation of campaign expenditure as aforesaid, where a candidate charges a fee for participation in political activities or for any goods or services made available at such activities the amount of any such fees charged and properly accounted for shall be deducted from the total amount of campaign expenditure. (2) Any candidate or election agent who knowingly acts in contravention of this article shall be guilty of an illegal practice.' ' (Source: The Financing of Political Parties Act, 2015. Published in the Government Gazette 28 July, 2015.)

Article 49: ' 49. Article 46 of the Electoral (Polling) Ordinance included in the Fourteenth Schedule to the General Elections Act shall be substituted by the following new article: '46. (1) The maximum sum paid and, or expenses incurred by or on behalf of a candidate at an election of members of the House of Representatives, and, or by his election agent, whether before, during, or after an election on account of or in respect of the conduct of such election, shall not exceed the sum of twenty thousand euro (?20,000) from every electoral district: Provided that a candidate contesting two electoral districts shall not be obliged to spend the total amount of permissible campaign expenditure as aforesaid, equally between the two districts but may apportion the said permissible campaign expenditure between the two districts in such a manner as the candidate deems fit: Provided further that in the computation of campaign expenditure as aforesaid, where a candidate charges a fee for participation in political activities or for any goods or services made available at such activities the amount of any such fees charged and properly accounted for shall be deducted from the total amount of campaign expenditure. (2) Any candidate or election agent who knowingly acts in contravention of this article shall be guilty of an illegal practice.' ' (Source: The Financing of Political Parties Act, 2015. Published in the Government Gazette 28 July, 2015.)

PART III (24), Financing of Political Parties Act, 2015, ammended in 2016

24. (1) The treasurer of a political party shall prepare an annual statement of accounts, in respect of each financial year, of
that political party.

'[E]lection candidates - at general as well as local council elections ? are required to submit a return of their election incomes and expenses to the Electoral Commission. Article 50 of the Fourteenth Schedule of the General Elections Act provides that the election agent of every candidate is required to transmit a return of the election expenses of the candidate to the Electoral Commission within 31 days from the publication of the result of the election. Every such return, signed by the candidate and his/her agent and signed before a Magistrate, is to contain a statement of all payments made by the candidate or by the election agent, or by any persons on behalf of the candidate, or in his/her interest, for expenses incurred on account of, or in respect of, the conduct and management of the election, and a further statement of all unpaid claims in respect of such expenses.' (p. 9) (Source: GRECO (2009) Evaluation Report on Malta on Transparency of Party Funding (Theme II))

PART III (29), Financing of Political Parties Act, 2015, ammended in 2016

29. Where the Commission receives any audited accounts, as a result of the obligation of delivery of statements of accounts to it, it shall, within one month after receiving the statement, make a copy of the statement available for public inspection and it shall post the said statement on the website of the Commission and keep it available for public inspection and on the said website for the period for which the statement is kept by it.

PART IV (37), Financing of Political Parties Act, 2015, ammended in 2016

37. (1) Any donations exceeding the amount of five hundred
euro (€500) from the same source shall be recorded together with
the amount of the donations, the donor’s name and address, or
company registration details, in the case when the donor is a
registered company, the date on which the donation was received
and the date on which the donation was accepted and any other
relevant details.

PART III, Financing of Political Parties Act, 2015, ammended in 2016

23. (1) The treasurer of a political party shall ensure that the accounting records are kept, with respect to the political party, in
accordance with the principles and accounting practices and in accordance with generally accepted audit standards and in such manner
which is sufficient to show and explain the political party’s transactions.
(2) The accounting records shall be kept in such manner that they:
(a) disclose, at any time, and with reasonable accuracy,
the financial position of the political party at that time;
and
(b) enable the treasurer to ensure that any statement of
accounts prepared by him for the purposes of the
annual statements of accounts comply with the
principles and accounting practices and in accordance with
generally accepted audit standards and with the relevant
provisions of this Act.
(3) The accounting records must in particular contain:
(a) sufficient details to be able to identify all sources of
income received and all disbursements made by the
political party, and the matters in respect of which
such receipts and expenditure takes place;
(b) a record of the assets and liabilities of the political
party; and
(c) the details of entities including commercial enterprises
which are related directly or indirectly to a political
party or are otherwise under its effective management
or control.

PART III, Financing of Political Parties Act, 2015, ammended in 2016

24. (1) The treasurer of a political party shall prepare an
annual statement of accounts, in respect of each financial year, of
that political party, which statement must include:
(a) a statement of income and expenditure;
(b) the statement of the financial position as at the end of
the financial year;
(c) the statement of cash flows; and
(d) all supplementary notes and schedules related to
paragraphs (a), (b) and (c):
Provided that for the purposes of this sub-article "financial
year" means such a consecutive period of twelve months starting
from the date chosen by the political party for the start of its
financial year.
(2) The statement of accounts under this article shall also
comply with such requirements as to its form and contents as shall
be prescribed by regulations made by the Minister, as advised by
the Commission.

PART III, Financing of Political Parties Act, 2015, ammended in 2016

22. (1) Political parties shall give account to the Commission in
respect of their financial administration. The Commission may request
information, on its own initiative, concerning the said financial
administration as provided in this Act.

PART III, Financing of Political Parties Act, 2015, ammended in 2016

4) The Commission shall, where it considers it necessary for
the proper enforcement of the provisions of this Act and subject to
its obligation to act in a proportionate manner, have the power to
investigate and demand to be provided with all information as it
may require from any political party, individual, legal person, body,
including any financial institution and, or any telecommunication
service provider, who may be in possession of such information to
determine the source of any donation received by political party

PART III, Financing of Political Parties Act, 2015, ammended in 2016

31. Any person who knowingly or negligently makes a  statement to the Commission on behalf of a political party, or of a member of a political party for any purpose of this Act, which statement is false in any material particular in which it is made, or purports to be made, shall be liable to an administrative fine not exceeding ten thousand euro (€10,000) and to suspension from holding office in a political party for a period not exceeding three months by way of administrative sanction.

32. (1) If it appears to the treasurer of a political party that any statement of accounts for any financial year of the political party has not complied with any requirements of regulations relating to the delivery of prescribed documents, he may prepare a revised statement of accounts which revised statement shall also be in compliance with the other provisions of this Act.
(2) Where the audited accounts have already been delivered to the Commission, the revisions shall be confined to:
(a) the correction of those parts in which the accounts do not comply with the prescribed requirements; and
(b) the making of any necessary consequential alterations.
(3) If it appears to the Commission that there is, or may be, a question whether any audited accounts delivered to it according to law complies with the prescribed requirements, it may give notice in writing to the treasurer of the political party in question indicating where it appears to it that such a question arises or may arise.
(4) The notice shall specify a period of not more than one month for the treasurer to give the Commission an explanation of the statement of accounts or prepare a revised statement.
(5) If at the end of the specified period, or such longer period as the Commission may allow, it appears to the Commission -
(a) that no satisfactory explanation of the statement of accounts has been given; and

(b) that the statement has not been revised so as to comply with the prescribed requirements, it may make an application to the First Hall, Civil Court, in
accordance with sub-article (6).
(6) The Commission may make an application to the First Hall,
Civil Court:
(a) for a declaration that the statement of accounts does
not comply with the prescribed requirements; and
(b) for an order requiring the treasurer of the political
party to prepare a revised statement of accounts.
(7) If the First Hall, Civil Court, orders the preparation of
revised accounts, it may:
(a) give such direction as it thinks fit; and, or
(b) order that all or part of the costs of, and incidental to,
the application are to be borne by the treasurer of the
political party.

PART III, Financing of Political Parties Act, 2015, ammended in 2016

31. Any person who knowingly or negligently makes a  statement to the Commission on behalf of a political party, or of a member of a political party for any purpose of this Act, which statement is false in any material particular in which it is made, or purports to be made, shall be liable to an administrative fine not exceeding ten thousand euro (€10,000) and to suspension from holding office in a political party for a period not exceeding three months by way of administrative sanction.

P 8 'GRECO notes that administrative and criminal law sanctions may be imposed on independent election candidates for violations of political funding rules... Violations carry an administrative fine ranging between EUR 5 000 and EUR 20 000 and a forfeiture in favour of the state of an amount equal to the value of an illegal donation.' (Source: GRECO (October 2015) SecondInterim Compliance Report on Malta:'Transparency of Party Funding')