Bank of Valletta is being used as “a cash cow” by the Labour government to fulfil electoral pledges, Opposition spokeswoman Kristy Debono said.
Ms Debono said bank chairman John Cassar White was being “used” by the government.
“BOV has been turned into a Labour Party club and decisions taken by John Cassar White are casting doubts on his leadership,” she said at a press conference outside the chairman’s office in Valletta.
Ms Debono said the chairman had a lot to answer for over decisions taken by the bank, including the special arrangement given to Parliamentary Secretary Michael Falzon.
She said private shareholders, who make up 60 per cent of the bank’s shareholding structure, had a right to information on decisions taken. Dr Falzon was awarded a golden handshake of €260,000 upon his appointment as parliamentary secretary last year with an option to return to the bank.
In Parliament, Dr Falzon admitted the arrangement was tailor-made for his situation. The Labour MP, a lawyer, used to work in the bank’s legal office.
Opposition spokesman Ryan Callus said it was unheard of to have severance packages or early retirement schemes that allowed the option for the employee to return.
“Dr Falzon should have taken unpaid leave but the bank decided to give him four years pay in advance, tax-free,” Mr Callus said. Mr Callus also cast doubts on the committee that decided on Dr Falzon’s severance package, which apart from the chairman included auditor Deo Scerri, who is also the Labour Party’s auditor, and Joe Zrinzo, father of former PL president Stefan Zrinzo Azzopardi.
“Justice is not served by silence and Mr Cassar White has a duty to explain decisions taken to shareholders... The bank is not a Labour Party club,” Mr Callus said.
He also noted that Dr Falzon may have misled Parliament when he submitted a list of other people who took early retirement packages from the bank. Dr Falzon said the details were publicly available on the bank’s website but no such information could be found online.
“How did Dr Falzon get hold of the information? Was it only available internally? Does he still have access to the bank’s e-mail or was it passed on to him?”
Mr Callus said that these questions deserved answers.