It is not yet known what is stopping the Prime Minister from sacking Dr Falzon, says the PN. Photo: Darrin Zammit Lupi

The Nationalist Party yesterday called on Bank of Valletta’s board of directors to explain the “unique” and “special” conditions tied to the €260,000 early retirement payout granted to Parliamentary Secretary Michael Falzon.

While recognising Dr Falzon’s experience and expertise in the bank’s legal office, shadow economy minister Claudio Grech said it was unheard of that an employee was paid to retire with the right to return.

He insisted the bank’s remuneration committee was in duty bound to explain the special package Dr Falzon received because other bank employees were not treated in the same manner.

“We cannot understand why the bank did not give Dr Falzon long leave without pay as good governance requires. Why was Dr Falzon treated differently and why pay him such a lucrative sum when he can return to his job,” Mr Grech asked. He added that being such an important financial institution, which was answerable to its shareholders, BOV should avoid treating politicians differently than other employees.

“BOV, as a credible institution, should explain how it calculated the sum granted to Dr Falzon and why he was singled out for special and unique conditions.”

We cannot understand why the bank did not give him leave without pay

Shadow justice minster Jason Azzopardi said this was the second case in a few weeks which saw Dr Falzon being involved in “shady deals”. Reiterating the PN’s earlier call for his resignation, he pointed out that Dr Falzon had already admitted he had holidayed with Marco Gaffarena and that he had met him at his Castille office over the scandalous expropriation deal of a building in Old Mint Street, Valletta.

Dr Azzopardi said it was not known what was stopping the Prime Minister from sacking Dr Falzon. “Is this being done so that Dr Falzon will not have to pay back BOV the €260,000 he received as early retirement once he returns as a bank employee?” he asked.

PN financial services spokeswoman Kristy Debono said this latest move on Dr Falzon’s retirement was one in a series of inexplicable decisions made by the bank.

She referred to a report on The Sunday Times of Malta saying that the bank requested an €88 million government guarantee to give a €101 million loan to a private company involved in the building of the new power station.

“Together with the decision of Dr Falzon’s early retirement, it seems BOV has entered into an era of ‘unique’ decisions,” Ms Debono said, adding that the bank directors and shareholders should ensure the financial institution did not continue to dent its credibility.