Talks over National Bank not excluded

The Government does not exclude holding talks with former shareholders of the National Bank for an out-of-court settlement, according to Parliamentary Secretary Owen Bonnici.

Such a decision, however, hinged on finding a “just solution” for all parties involved.

As a Government we are not excluding an out-of-court settlement as long as a just solution is found

This would give shareholders closure after a legal human rights battle that has dragged on for over 35 years. Although the case has been deferred for judgment, Mr Justice Joseph R Micallef, who is presiding over the case, has been postponing handing down judgment, according to one of the parties.

It was postponed for the umpteenth time earlier this week.

Former Prime Minister Dom Mintoff and the Government were sued by the bank’s shareholders after they were forced to hand over their shares when the National Bank of Malta faced a run on deposits in 1973.

The Government eventually replaced the private bank with State-owned Bank of Valletta, leaving hundreds of families feeling robbed of their wealth.

Shareholders have consistently argued that the run had been engineered specifically to weaken the bank and provide the government with an excuse to nationalise it in the public interest.

They also claim that the Central Bank had failed to intervene as regulator when it had a legal obligation to do so.

They say that individual shareholders had been intimidated into signing away their shares for no compensation.

A court case filed by shareholders in 1977 is still ongoing, forcing Dr Bonnici to distance himself from the lengthy proceedings.

“The Government has absolutely nothing to do with the delay for judgment to be passed in this case. On a general level, the principle always remains that justice delayed is justice denied,” Dr Bonnici said in reply to questions put by Times of Malta.

Asked whether the Government was considering an out-of-court settlement with the shareholders, Dr Bonnici said: “As a Government we are not excluding an out-of-court settlement as long as a just solution is found,” he said.

Labour leader Joseph Muscat had held a meeting with Jeremy Cassar Torregiani, the grandson of the National Bank of Malta founder prior to the March 9 election.

The new Government had signalled its intention to hammer out an agreement that would see about 300 shareholders compensated for their losses – a settlement that is expected to cost the Government tens of millions of euros.