Variables underlying the government's accounting reform in Malta

Abstract

The process to reform the Malta Government accounting system was formally initiated way back in 1999. Fifteen years has passed since then and for some impressive reason this process is not yet finalized and is still ongoing. Almost all the preparatory work for the transition has been conducted. Only the issuing of the tender to replace the current cash accounting software remains to be done. This study undergoes an empirical analysis of the main obstacles obscuring such transition. A total of 11 semi-structured interviews were conducted to analyse the views and intentions of the people heading the accounting reform in the Maltese Public Sector. The findings indicate that the introduction of accrual accounting at the central level of Malta is continually being delayed because the presentstatistical reporting requirements for Eurostat are being achieved with the current patched-up cash-based accounting system. As a result, the priority, motivation and interest for an accounting reform at Malta's central government are being lost. This assertion reflects the lack of commitment shown by the top political actors and the senior bureaucrats that are involved in the Maltese accounting reform. In fact, the politicians and the high level administrative officials continuously project themselves as if they are committed to act, even though they have no intention to do so or have no idea what the requirements of the reform entail. This explains why the introduction of accrual accounting is often given prominence in the annual Budget Speeches and yet nothing transpires.