Irate investors this evening demanded explanations over the La Valette Multi Manager Property Fund that went belly up after it invested in high-risk sub funds that went bust.
The fund was managed by Bank of Valletta and Valletta Fund Management, the bank's investment arm. The bank suspended trading in the fund's shares in August 2008, leaving investors high and dry.
The investors, who were attending an annual general meeting, demanded explanations and responsibility for the losses they incurred.
They hurled insults at the fund's directors with the meeting becoming so noisy at one point that chairman Salvino Busuttil repeatedly threatened to suspend it. His declaration wasmet with boos and more insults.
Prof. Busuttil was the only independent member of the fund. He was faced with a series of questions from Finco Trust Group managing director Paul Bonello, who has been representing aggrieved investors against BOV.
Mr Bonello accused Sicav and VFM of having invested the money in property funds which had debt levels that were too high to cover the value of their assets. He also accused BOV of issuing "false" annual reports for four years in a row.
He asked whether investors could have peace of mind that similar reports were not being issued on the other 12 funds managed by VFM.
Mr Bonello asked whether the directors had considered taking legal action against BOV, any director or against foreign fund manager, Insite Management, over the dismal investments. He also questioned whether the withdrawal of €16.2 million from the fund in 2008 had been investigated.
He mentioned how John Ripard, as former director of La Valette Funds, disposed of his shares while in possession of sensitive information that was not available to the public. Mr Ripard, who is not a BOV board or management member, voluntarily tendered his resignation although BOV said he maintained his innocence.
Prof. Busuttil replied that the directors had met incessantly to take measures in favour of investors and said that legal action was not being excluded. He, however, mentioned the high cost of such action.
One investor who spoke likened the property fund to the Costa Concordia cruise ship which sunk recently, saying the captain, in this case the directors, swam away to safety but the investors were left to drown.
At the end of the meeting investors took a secret ballot to approve the accounts and the reappointment of PriceWaterhouseCoopers as auditors.