Central Bank awaiting loyalty declaration from employee

The Governor of the Central Bank, Michael C. Bonello, has filed a counter protest in the First Hall of the Civil Court rebutting allegations made against him by employee Sandro Demarco.

Mr Demarco in a protest last month said an internal bank investigation on December 15 last year had exonerated him of claims that he had leaked information. He said the outcome of the investigation had been kept secret and he requested publication of the report.

Mr Bonello told the court today that the bank had instituted two internal proceedings against Mr Demarco after the latter had carried out a review of a report prepared by the Labour Party involving the impact of the increase in energy tariffs. The report was published by the PL in November 2008 under the title "Stima ta' Surcharge minghajr Sussidji".

The Central Bank was of the opinion that Mr Demarco had contravened the bank's internal rules governing confidentiality and its code of ethics. Proceedings were therefore instituted against Mr Demarco. The first proceedings concerned the possible violation of the bank's Anti Fraud Policy. On December 15, 2008 the Audit Committee had concluded that Mr Demarco had not violated this policy.

The second proceedings involved the setting up of a Disciplinary Board in terms of the bank's collective agreement to examine whether Mr Demarco had been bound to obtain the bank's prior authorisation before carrying out the review of the PL's report.

Last September the Board concluded that although Mr Demarco was not guilty of this charge, he ought to have exercised more caution and prudence before accepting to review a report on a matter which had all the ingredients for a public controversy. The Disciplinary Board ordered Mr Demarco to write to the bank within two weeks in order to assure it of his continued loyalty, dedication and commitment. The letter was also to declare that there would be no repetition of the circumstances that led to the disciplinary proceedings.

But Mr Bonello told the court that to date the bank had not received this letter.

In conclusion Mr Bonello called upon Mr Demarco to stop making any claims against the Bank.