Financial Crime World

Whistleblower Protections in Malta Fall Short, Critics Say

Malta’s new whistleblower protection law has been criticized for containing numerous limitations and loopholes that could discourage individuals from reporting wrongdoing.

Limitations and Loopholes

  • The law requires whistleblowers to make an internal disclosure before making an external one, which could lead to a delay in reporting serious wrongdoings.
  • The law only protects disclosures made in good faith, raising concerns about the motivations and intentions of whistleblowers. Good faith is also not defined in the law, increasing uncertainty for prospective whistleblowers.
  • The law excludes small and medium-sized enterprises, voluntary organizations, and certain government agencies from its application, leaving many Maltese companies and entities without legal protection.

Exclusions

  • Employees who work with the Police, Army, Security Service, or diplomatic service are excluded from the law’s protections, giving the Minister extraordinary powers to determine how these categories of persons are affected.
  • The law excludes reports made to the media, which could discourage whistleblowers from coming forward.

Criticisms

  • Experts argue that the law is too restrictive and may hinder efforts to uncover serious wrongdoings in Malta.
  • Critics say that the exclusions and limitations in the law send a signal that certain entities are not required to take whistleblower reports seriously.
  • The lack of specific protection for whistleblowers who resort to the media has also raised concerns.

Call for Reforms

  • Experts are calling for reforms to ensure that whistleblowers have adequate protections and are not discouraged from reporting wrongdoing.
  • Critics argue that the law needs to be rewritten to provide stronger protections for whistleblowers and to encourage reporting of wrongdoing.

In conclusion, Malta’s whistleblower protection law has been criticized for its numerous limitations and loopholes. It is essential to reform the law to ensure that whistleblowers have adequate protections and are not discouraged from reporting wrongdoing.