Parliamentary Secretary Michael Falzon’s €260,000 early retirement deal with Bank of Valletta was “obscene” and shareholders deserved an explanation, Opposition leader Simon Busuttil said yesterday.
Speaking during a Radio 101 phone interview, Dr Busuttil said shareholders should be told why Dr Falzon had been given an early retirement package that was noticeably different from those given to other employees.
The Sunday Times of Malta reported yesterday that a special clause had been inserted into Dr Falzon’s retirement package when he left the bank to join Cabinet last year.
His package not only grants him a quarter of a million euros but also allows him to return to his job if he leaves the government.
Dr Busuttil pointed out a clause in the agreement which stated that Dr Falzon would have to return the €260, 000 if he started working at the bank again. This, he said, made it clear that Dr Falzon would not be resigning over his involvement in the Gaffarena expropriation scandal.
It is obvious Dr Falzon won’t be resigning; he’d have to give back €260,000
“It is obvious Dr Falzon won’t be resigning; he’d have to give back €260,000,” Dr Busuttil said.
Bank of Valletta confirmed that this was the first time any employee had been given an option to return from retirement, adding that none of its staff members had ever left after being appointed to Cabinet.
Dr Busuttil yesterday likened the government to a Hollywood soap opera, claiming everyday seemed to be a new episode with a fresh scandal. The people, he said, were getting increasingly disgusted with such scandals and losing trust in the political system.
The PN, therefore, had a duty to seek ways to restore the people’s confidence in politics. A new PN government, he said, would introduce measurers, including an effective ministerial code of ethics and a Commissioner of Standards in Public Life, to restore the people’s faith in government.
Dr Busuttil listed a number of measures he would do if he were prime minister.
He said he would immediately order an inquiry into the links between the Gaffarena family and that of former acting police commissioner Ray Zammit. Mr Zammit’s son, former police inspector Daniel Zammit, was involved in business dealings with the Gaffarena family.
He would also have stopped Mr Zammit and his sons from retaining any public posts. So far, he said, Mr Zammit was still Director of Prisons and had recently been appointed to head a new agency overseeing the warden service.
Dr Busuttil concluded the interview with a plea to the present police chief.
He asked what Police Commissioner Michael Cassar would do to clean up the force and instil a sense of confidence in its integrity, something that was gravely lacking at the moment.
In a statement, the Labour Party asked what action would Dr Busuttil be taking in view of the scandal involving shadow minister Jason Azzopardi and former prime minister Lawrence Gonzi on the purchasing of land seven times its estimated value.