Cecil Pace calls for end to Bical process

Cecil Pace, a former director of the Bank of Industry, Commerce and Agriculture Ltd (Bical), yesterday filed a judicial protest calling upon the bank’s controller and the government to finalise the liquidation of the bank and for the distribution of its remaining assets.

Mr Pace told the First Hall of the Civil Court that in 1972 the government had temporarily suspended Bical’s operations and had appointed a controller, Karmenu Mifsud Bonnici, to safeguard the interests of the bank’s depositors, creditors and shareholders.

In 1973 the government had forced the shareholders of the National Bank of Malta, Scicluna’s Bank and Tagliaferro’s Bank, to transfer their shares to the government without compensation. Bank of Valletta was then set up instead of these banks.

Two years later the government had forced Barclay’s Bank to sell it half its shares for a small price. Eventually Mid-Med Bank was set up after the government acquired the remaining shares in Barclay’s Bank.

Mr Pace said that Bical and its associated 30 companies had owned six hotels, seven ships, a shipyard and other immovable property which were valued at €7 million. But Dr Mifsud Bonnici, as controller, had failed to administer the assets correctly and had sold them at ridiculous prices. He had moreover failed to keep proper records save for some notes on a school exercise book. Nor had he rendered an account of his work. No action had been taken by the government against Dr Mifsud Bonnici despite these failings.

Emanuel Bonello, who had succeeded Dr Mifsud Bonnici as controller, had found a totally disorganised system with missing funds. But Mr Bonello had incurred large expenses and had commanded exorbitant fees for his services without collecting the amounts owed to Bical and its associated companies, Mr Pace said.

Mr Bonello had also failed to take action against his predecessor and he too had not rendered an account of his administration.

Once again the government and other authorities had not taken any action against Mr Bonello. Mr Pace told the court that he had filed action for damages against both Dr Mifsud Bonnici and Mr Bonello but that the cases had recently been assigned to one judge.

He added that in 1995 the government had enacted a law concerning liquidation proceedings. This law had granted the controllers and liquidators of companies immunity, with retroactive effect, from prosecution or actions for damages.

However, in 2003 the Constitutional Court had found that this law was in violation of Mr Pace’s fundamental human rights to a fair hearing and to an effective remedy.

The protest was signed by lawyers Tonio Azzopardi and Malcolm Pace.