Finco Treasury Management has denied a claim by Finance Minister Tonio Fenech on TVAM that there are only three outstanding claims related to the controversy over mis-selling of Preferred Perpetual Securities by Bank of Valletta.
"The minister has been incorrectly informed or there has been a gross 'misunderstanding,'" the company said.
Finco issued a list of its clients, whose claims, it said, had not been settled by the bank despite an MFSA recommendation to reintegrate them to their previous financial position.
1. MFSA Ref 1319, 113 – MFSA recommendation dated 16th July 2012 - couple aged 64 and 59 year, pensioner, carpenter, attended compulsory school only.
2. MFSA Ref 1318, H0361 – MFSA recommendation dated 16th April 2012, 54-year-old civil service driver, unable to read and write, schooling until obligatory school leaving age.
3. MFSA Ref 74 – MFSA recommendation dated 27th July 2012. 74 year-old-pensioner , distributor of fresh milk products, unable to read, write and understand English, schooling until obligatory school-leaving age.
4. MFSA Ref 1019, H0025 – MFSA recommendation dated 5th March 2012, 35 years, chef, secretary.
5. MFSA Ref 1149, 9 – MFSA recommendation dated 9th October 2012 61 years, importers of shoes.
6. MFSA Ref 1094, H0039 – MFSA recommendation dated 14th March 2012, 71 years, and 71 years, cardiac patients with 3 coronary by-passes, Ex-shoe repairer, schooling until obligatory school-leaving age.
MFSA Ref 1150, 11, H0337 – MFSA recommendation dated 16th May 2012 ex-importer of foodstuffs, 68, unable to understand, read, write or speak English, schooling until obligatory school-leaving age.
8. MFSA Ref 1239, 36 – MFSA recommendation dated 16th April 2012. couple aged 60 and 58, teachers.
9. MFSA Ref H0232 – MFSA recommendation dated 1st March 2012, retired civil servant, housewife.
10. MFSA Ref 994, F0171 – MFSA recommendation dated 14th March 2012, cpouple aged 97 and 83, chronically ill, quit active work 40 years old. Man was previously a shipping clerk.
11. MFSA Ref 1197, H0232 – MFSA recommendation dated 11th May 2012, 52 years old, full-time farmer, quit school upon obligatory school leaving age.
12. MFSA Ref 1171, 12 – MFSA recommendation dated 1st March 2012, 63 years, housewife.
13. MFSA Ref 1153, 13 – MFSA recommendation dated 25th July 2012, 58 years, importer of food and catering equipment.
14. MFSA Ref E0151 – MFSA recommendation dated 9th January 2012, 52 year old, suffered industrial accident at 27 years and has an amputated leg, lives on social security benefits, skilled in tailoring.
15. MFSA Ref 1154, 14 – MFSA recommendation dated 13th August 2012, 49 year old, housewife
16. MFSA Ref 1155, 17 – MFSA recommendation 1st March 2012. Pensioner couple aged 80, 77, ex pharmacist.
Finco said there was another case where the MFSA recommended reintegration of aclient's position and the bank agreed to pay principal and interest, but this case had a special feature in that complainant had commissioned a calligraphic expert report which confirmed that a signature on a bank document was not genuine and the Police had commenced active investigations. At this point the bank accepted to pay as recommended by MFSA.
4. Another 15 complaints are still at the stage of being assessed by MFSA, even though some of them were submitted almost two years ago.
Finco noted that the minister had also said that he himself did not interfere in the workings of the MFSA, especially as he was responsible for the MFSA while the government was also a shareholder of BOV. The company said that it accepted the minister's word.
BOV REACTS
In a reaction, Bank of Valletta said it is dealing with all complaints related to investment products. In a good number of cases, the bank has reached an agreement with the customers involved. In others, investigations or discussions are still in progress with a view to finding a just and equitable arrangement whilst in a few other cases, the bank has rejected the customers’ request.
The overall position to date is as follows:
Investment complaints where customers have been refunded - 39
Investment Complaints where BOV has made an offer that is being considered by the customer - 12
Investment Complaints where investigations are ongoing - 48
Investment Complaints not upheld by BOV - 39
Total - 138
The MFSA recommended that the bank reach a settlement with 20 complainants. Of these, the bank has reached an agreement with 18 customers.
The bank said it is committed to remain the 'caring and genuine bank' it is known to be and that it will always continue to be supportive to its customers.
"BOV reiterates that it has always acted, and will continue to act in a responsible manner in keeping with its position as the largest financial services organisation in Malta, with a responsibility towards a substantial number of stakeholders including the economic and social development of the country as a whole."