Finco says Bank of Valletta statements half-truths

Finco Treasury Management Ltd this afternoon advised aggrieved La Valette Sicav p.l.c. Multi Manager Property Fund investors to show some more patience and to allow the MFSA to continue its work with integrity and competence.

It said in a statement it continued to be very confident that the regulator's report would bear out its allegations.

Finco said that much of the commentary in Bank of Valletta's financial statements yesterday and comments made by the bank's chairman Roderick Chalmers were half-truths and in the formalistic splitting of hairs in attempt to confuse the issues.

Bank of Valletta's commentary to the interim results referred to "unsubstantiated allegations in judicial protests", Finco said.

"Nothing can be further from the truth!! Finco Treasury Management Ltd and the aggrieved investors have submitted voluminous and irrefutable documentary evidence to MFSA, and sometimes to BOV, in support of all of its allegations made that hundreds of aggrieved retail investors have lost their substantial savings (and in some cases life-time savings) due to breaches of investment restrictions in the fund's prospectus as well as due to multiple breaches of investment rules, including mis-selling.

"We also provided evidence and sworn affidavits in relation to alleged improper use of price-sensitive information by fund directors, related parties and their connected persons.

"The rhetoric arguments of the bank and of its chairman are primarily meant to save the skin of those who are responsible for this debacle.

"This attitude is not in the interests of its clients, of the bank itself and indeed of the credibility of Malta's financial services sector and the banking sector in general, soon intended by the government to be entrusted with the administration and management of investments in the forthcoming implementation of the 2nd and 3rd pillar of the Pension Reform Programme.