Autonomy and control of public corporations : the case of the Malta development corporation

Abstract

This study analyses the degrees of autonomy and control existing between a major public corporation The Malta Development Corporation - and the Maltese Government. After reviewing the historical development of the Corporation and its role in Malta's development process, an insight is provided about present and emerging trends particularly in lieu of the restructuring process the Corporation is presently undergoing. Although it is still premature to discuss the success or otherwise of such a process, certain observations can be discernible. Interesting issues emerged, particularly during the discussions held with executives at MDC, METCOL and MIMCOL and several companies within which MDC has a majority shareholding. The responses seem to infer that although a prima facie there is a certain degree of autonomy, as the interviews proceeded, it emerged quite clearly that the companies' day-to-day operations are shackled by various ministerial directives. Political leverage both within certain enter prises and within the Corporation itself has prevailed to different extents although this has been advertently mitigated by the interviewees. Nonetheless, the study attempts to provide sufficient insight as to the emerging interrelationships between MDC, its affiliates and Government within a small and developing state as is Malta.